Labor Market Trends

LABOR MARKET TRENDS The 10 Fastest Growing Occupations • • • • • • • • • • Medical Assistants Network Systems and Data Communications Analysts Physician Assistants Social and Human Services Assistants Home Health Aides Medical Records and Health Information Technicians Physical Therapists Aides and Assistants Computer Software Engineers Fitness Trainers and Aerobics Instructors Database Administrators Tracking the Labor Force • • Bureau of Labor Statistics (BLS) - assembles information on the labor force. Labor Force – all nonmilitary people who are employed or unemployed. - key terms… - “employed” and “unemployed” Employment • 16 years of age or older and… - worked at least one hour for pay within the last week. - worked 15 or more hours without pay in a family business (such as a farm). - held jobs but did not work due to illnesses, vacations, labor disputes, or bad weather. Unemployment To be counted as unemployed, a person must… - have work lined up for the future, or must be actively searching for a job. Examples include… • - full-time students - parents who stay home to raise kids - retirees “Discouraged workers” are not counted. The BLS • Answers two important questions… - How many people are in the labor force? - How many are employed and unemployed at any given time? • The answers to these two questions indicates the health of the current labor market. Occupational Trends • A Changing Economy - Farming - Industrial Production - Information Age (service industry) • Effects of Globalization and Outsourcing A Changing Labor Force • • 1950s – a white male who had graduated from high school and found a secure 40 houra-week job until retirement at age 65. (The gold watch) Today – expect to have four or five different jobs during your working life and retire at around 62, or even sooner! Value of a College Degree • • • • • • • • • • Less than High School. High School Some College College Degree Advanced Degree $10 per hour $13 per hour $15 per hour $24 per hour $30 per hour Theories of Education • • Learning Effect - that education increases productivity and results in higher wages. Screening Effect - the completion of a college degree indicates that a job applicant is intelligent and hard-working. Women at Work • An increase in women in the workforce has been due to… - the encouragement to get a higher education and add to their human capital. - the service industry requires brainpower, not brawn, placing men and women on an equal footing. - today more women than men are employed in the workforce. Temporary Workers • • Contingent Employment – temporary and part-time jobs. Reasons for… - Flexibility during off-peak seasons. - Ease in discharging temporary workers. - Temp workers are paid less and given fewer benefits. - Some workers prefer flexible arrangements. Trends in Wages and Benefits • • • Greater competition from foreign companies has decreased the demand for low-skilled workers. Rising costs of benefits means cuts in wages. Outsourcing – moving production facilities overseas, where wages are lower and benefits are nonexistent. Problem Solving Would you hire permanent workers or contingent workers if you owned… - a landscaping business in Minnesota? an architectural firm? a large resort in the Brainerd area? - a tax preparation service?