1. Labor Market Trends
OBJECTIVE: In this lesson, students will be able to identify historical and recent trends affecting the labor market.
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2. At its founding, the United States was a
nation of farmers.
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3. With the coming of the Industrial Revolution,
many Americans became factory workers.
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4. Changes to US Labor Force
American Revolution: Mostly Agriculture
Industrial Revolution: Mostly Manufacturing :
PERCENT OF WOMEN IN THE LABOR FORCE HAS INCREASED FROM <30% TO >45%
The labor market is continually changing.
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5. Computers revolutionized work and the
workplace. The production of services
has increased while manufacturing has
decreased.
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6. TECHNOLOGY REVOLUTION
COMPUTERS ARE USED BY >80% OF MANAGEMENT AND ~30 OF UNSKILLED LABOR
PROCESSING DATA OVERTAKING MANUFACTURING IN IMPORTANCE
Changes in technology makes location less important
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7. Globalization
OUTSOURCING VS INSOURCING: LEAVING US VS “COMING TO AMERICA”
Manufacturing cheaper in other countries
Why make factories in the US?
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8. Other Changes There has also been a rise in temporary employment.
Telecommuting: Working from home via Computer.
Moving from “Career” to a series of jobs
Number of job changes increasing.
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9. Theories Concerning Education
There are two theories as to why educated workers make more money.
The Learning effect states that education increases productivity.
The Screening effect states that completing college indicates intelligence.
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10. Theories Concerning Education
There are two theories as to why educated workers make more money.
The Learning effect states that education increases productivity.
The Screening effect states that completing college indicates intelligence drive and persistence.
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11. Does completing college increase productivity or reveal intelligence?
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12. Questions for Reflection:
How has the labor market changed over the course of time?
Why do more women work?
What is an advantage and a disadvantage of contingent employment?
How does the learning effect differ from the screening affect?
Why has manufacturing decreased and the production of services increased?
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