1. European Parliament, 30th March 2017
The employment and social situation in the USA in an increasingly digitalised labour market
European Parliament, 30th March 2017
Professor Chris Forde
Professor Mark Stuart

2. Background
US ECONOMY
Changes in labour market over last decade – but how much?
Digitalisation
Recession and recovery
Assessing the Obama administration and looking forward

3. Key questions about US labour market
How much has changed over the last decade?
Effects of recession and recovery?
How is the labour market regulated: Federal versus state?
What forms of social protection are in place?
Similarities and differences with EU?

4. Participation and employment rates
Long-term falls. Why?
‘Discouraged workers’?
Ageing workforce?
Recession effects
Disability rises
Delayed retirement/increases in FT education

5. Participation rates 2000-2016, USA

6. The rate of unemployment in the USA

7. Youth unemployment in the USA, 2004-2017

8. Long-term unemployment in the USA, 2016

9. Responses to the recession
Unemployment Insurance length extended
American Recovery and Reconstruction Act (ARRA) - training
Strong recovery? Underlying problems
Digitalisation programmes – apprenticeships; high-tech training

10. Self-employment ?

11. Employment forms Part-time employment Temporary help employment
Self-employment: BLS data: Bespoke surveys:
Alternative workforce: 14.2m in 2005 to 23.6m in 2015.
0.5% working through online intermediary

12. Growth in employment: key sectors

13. Nominal wage growth, USA, 2008-2016

14. Wage inequality in the USA, 1979-2014

15. Employment protection
More lightly regulated than EU
At-will employment is common law
Only ratified to ILO Conventions
Federal labor law plus some state level legislation

16. Key elements of labour market protection in US
No statutory rights to paid holidays
Termination of contracts without notice
Equal treatment legislation
National Labor Relations Act and Board
Union representation and ‘right to work’

17. Social protection: a laissez-faire approach
Earned Income Tax Credit: ‘the nation’s largest anti- poverty programme’ (Reich, 2015).
Social Security Act: old-age benefits
Unemployment insurance

18. Healthcare protection/insurance
USA: ‘hybrid’ system
Workplace based insurance
Gaps in coverage: 11% of population

19. The Affordable Care Act
From January 2014, ‘individual mandate’ to have health insurance
10 million more covered
Medicaid expansion at state level
Trump - changes?

20. State level protection: the Minimum Wage
Federal rate = $7.25.
Value fallen in real terms
Most states set own minimum wage
The highest rate $11.5
Campaigns for $15 per hour

21. Thank you
Any questions?