Labor Trends In The Market

The Labor Force Today’s labor force is

transforming before our eyes Computer related occupations

is where the jobs are at Bureau of Labor Statistics

survey households to assemble the necessary information about employed & unemployed people

Employed: •16 years or older•1 hour of pay per week•15 or more hours of week without pay (family bus.)•Illness, vacations, bad weather,or labor disputes

Unemployed People who do not meet the qualifications for the employed Must have worked lined

up in the future Actively searching for a

job Exceptions

F/T studentsF/T students Stay at home parentsStay at home parents Discouraged workersDiscouraged workers

The BLS provide the answersto 2 economic questions:

•How many people?•How many are employed orUnemployed at the same time?

Occupational Trends A changing economy

Once a nations of farmers

Industrial revolution The rise of corporations Electronics industry Technological Age

Information Age ½ American

workers reported some use of computers on the job

Fewer Goods, More Services: Change from a

manufacturing economy to a service economy

Productions of services increasing faster than those in goods

International Competition Effects: Today capital & labor are mobileToday capital & labor are mobile Crossing international bordersCrossing international borders

Demand for skilled workersDemand for skilled workers has increasedhas increased

The Changing Labor Force A person can expect to have 4

to 5 different jobs in their lifetime College Graduates

Human capital.Human capital. Cost $Cost $

HS Diploma will not prepare HS Diploma will not prepare you for financial successyou for financial success

Higher earnings compensate for Higher earnings compensate for expenseexpense Learning effectLearning effect

Screening Effect: •Tells an employee that you are hardworking & intelligent•Identifies useful qualities for employees

The Changing Labor Force Cont. Women at Work

Changing face of the workforce

38% of workforce in 1960 to 60% by the year 2000

Encouraged to get a higher education

More jobs in the service than in physical strength

More than 61% by 2006

Temporary Workers P/T & Temp workers seem

to be more popular Contingent employment:

white collar/contract workers Flexible arrangement Discharging is easier Paid less & fewer

benefits Workers prefer

flexible arrangement

Trends in Wages & Benefits Up for some but down for

others The last 20 years there has been

slightly lower earnings $275 (1980) to $278 in 2003

with measured inflation at the dollar amount of $523

Paid in wages before but benefits cost now

College graduates earnings have gone up while workers w/out education degrees have decreased

•Greater competition with cheapForeign labor•Deregulation of industries haveForced firms to cut employeesWages as competition has increased

Benefit Costs Pensions & health insurance are a significant

portion of wages received 28% of total compensation in the US economy

today SS is seen as a benefit Contingent employment Production facilities moving overseas The more benefit costs continue to rise the more

firms will continue to cut in order to make a profit