1. E. Napp Labor Market Trends In this lesson, students will be able to identify historical trends affecting the labor market. Students will be able to identify and/or define the following terms: Historical Changes Affecting the Labor Market Women and the Labor Market Contingent Employment The Learning Effect The Screening Effect

2. E. Napp At its founding, the United States was a nation of farmers.

3. E. Napp From Farms to Factories At the time of the American Revolution, most Americans were farmers. However, in the North, agriculture yielded to the Industrial Revolution in the early 1800s. Eventually, manufacturing jobs replaced many agricultural jobs.

4. E. Napp With the coming of the Industrial Revolution, many Americans became factory workers.

5. E. Napp From Radio to Computers By the mid-twentieth century, the United States experienced a boom in electronics, radio, and television. Many Americans found work in this new arena. However, by the 1970s, the personal computer revolution began. The labor market is continually changing.

6. E. Napp Computers revolutionized work and the workplace. The production of services has increased while manufacturing has decreased.

7. E. Napp Women and Work Women have greatly increased their participation in the workforce. There are many reasons for the increased participation of women in the workforce. Increased education, higher divorce rates, and the need for two salaries has led many women into the workforce.

8. E. Napp Women have greatly increased their participation in the labor force.

9. E. Napp Contingent Employment There has also been a rise in contingent employment. Contingent employment is a temporary job. A worker is hired for a specific project or a specific period of time. Employers typically do not provide fringe benefits.

10. E. Napp Contingent employees do not receive the benefits of permanent full-time employees.

11. E. Napp 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.

12. E. Napp Does completing college increase productivity or reveal intelligence?

13. E. Napp One thing is clear about the labor market, change is inevitable.

14. E. Napp 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?