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External Forces Changing the Workplace  Demographic change  Technological change  Structural change  Competitive pressures  Reorganization of work  Government intervention

Historical Trend Lines for Employment by Major Industry Sector, 1800 to 2012 (Projection)

Competitive Pressures  Recent trends have intensified competition for American companies.  Customer demand  Deregulation of large industries  Global competition  By global standards, American workers are extremely expensive.  Companies in some industries now contract to have manufacturing done in a foreign country.

Reorganization of Work  Corporations alter business processes as they adjust to environmental changes, primarily competition.  As transport costs have fallen, manufacturers more often separate production from consumption by sending their manufacturing to low-cost countries, then shipping products back to customers.  Because of communication technology, service work can now be sent to low-cost locations.  Trade in services between nations is growing, creating fears about job loss from outsourcing.

Reorganization of Work (continued)  Offshoring has fueled attacks on corporations for destroying well-paying jobs in developed nations out of greed.  In a recent one-year period 937,652 workers lost their jobs in mass layoffs, however only 31,089 were unemployed because their work left the country.  Outsourcing so far is a minor portion of the job gains and job losses of American workers.

Development of Labor Regulation in the United States  Historically, a strong laissez-faire current in American economic philosophy made governments at all levels reluctant to interfere with the employment contract.  Today, government intervention is extensive and growing, but this is a twentieth-century trend.

The Trade-off in Labor Regulation

Labor Regulation in Perspective  The bare minimum for labor market regulation is compliance with four core labor standards set forth in international labor conventions.  Eliminate all types of forced labor.  Abolish child labor.  Ensure equal opportunity and nondiscrimination.  Guarantee collective bargaining.