Labor Market Trends
Most of the economic analysts argue that trend of the labor market can be characterized as a dynamic one, meaning on a constant change, and its dynamism can be attributed to the changing economic performance of the market and some other factors that imposes an effect to the labor market. During the time when the economy is in good or bad condition, the behavior of the labor market is very different on every scenario.
By understanding the trend of the labor force would mean, for the policy makers, having the capacity of predict the level and skills of the labor force that will be available in the economy and on how they will utilize its number to attain the societal goal as a whole.
An economy having a surplus or a deficit of laborers would certainly bring costs and benefits. This is the reason why the labor market trends should be monitored form time to time. Factors affecting the labor market pattern should also be considered. Technology, government policy and the like must also be included into attention for it imposes either direct and/or indirect effects to the labor market trends.
In the technological world that we are now living, it is ordinary for the economy to demand for new skills, job opportunities and new line of labor in order to suffice the need of the modern kind of living. With the complexity of the economy as time goes by, the policy makers has to monitor the demand and supply of low skilled and high skilled workers to protect the welfare of the majority while maximizing the profitability of the economy as a whole.
As for the companies that plan to hire workers, it is necessary for them to understand the trend in the labor market for them to determine the level of education the available worker has and to set their standards based from the given information (Marcotte, 1991).
This paper aims to discuss the current labor trend such as the trends for new jobs and its relationship to career development by relating an article about labor market trend to the existing one.
Labor Market Trend
Employment rate, wage rate, growth rate of the industries and the required level of education for an individual to have a work are just a few of the factors that should be considered in identifying the current trend in the labor market. According to the article of Fix, he talked about the reason of the increase in the demand for the laborers in the late 1990’s due to the sustainable growth in the US and globalization in the economy that even the low skilled workers and single mothers are hired to suffice the demand for the laborers. With this we can see that economic forces affect the trend in the labor market.
The higher the investments in economy, the greater the number of possible job opportunity for that certain employment line. One example to this is the current high demand of the nurses in many parts of the world, because of this; most of the undergraduate students tend to study nursing in order to have a better career, get a better salary and so forth. It is understood that if a certain job line is in demand, there would be always a high wage rate, lot of benefits and “nice” employment terms and agreement. This is what has been the behavior of the students when choosing their undergraduate courses (Amirault, 1990).
Government policies also play a vital role in affecting the trend in the labor market. Those job lines that have greater benefits compared to the others as mandated by the law would surely gain higher demand from the laborers (International-Labour-Organization, 2000). The government must also monitor their minimum wage rate to prevent their workers to migrate abroad. Migration of the skilled workers would greatly affect the economic performance of the country for it makes the country to have fewer workers in performing various economic roles. Wage rate must be set in balance in order to attract the workers to stay and work in the domestic market (Fix, 2002).
The booming of a certain industry would also affect the current trend in the labor market for it attracts laborers to apply into that industry (Fix, 2002). One example into this is the impressive growth of the cellular phone industry in the south-east Asia and because of this, the tendency of the labor pool is to have a vocational course on electronics since there is a great demand for the said line of job. Cellular phone technicians also became in demand in the economy.
Effects of the Globalization to Labor Market Trend
Globalization has already been attributed to various negative effects that developed countries now experiencing. One of the main arguments of the analysts is that under globalization, multinational corporations are exporting laborers from the developed to developing countries through the aid of the “foreign direct investments” (International-Labour-Organization, 2000). When a certain corporation made its investment abroad, it brings with them some of the top skilled workers to supervise the operation of the new company branch in another country.
In this case, all the skills of the imported laborers will benefit the country where the capitals are invested. And not only that, the host country could also benefit from the additional job opportunity that the company will offer to the labor market. Under the trade liberalization, the government is giving the consumers pieces of advice to prefer more the goods produced from abroad than with the locally produced one (International-Labour-Organization, 2000).
With this, the local industry will find it hard to compete with the imported goods in terms of price and quality, therefore, harming the laborer since there is a possibility for them to be laid off to cut production costs on the part of the local industry. The increasing use of machineries and other advanced technological process to speed up the production made some laborers to loose their jobs since company owners prefer the most the machineries over the human labor for the former is more effective and efficient in working.
Industries became more and more independent to technology in making their products produce faster and of great volume according to the International Labour Organization. It is therefore crucial for the government to regulate and protect the welfare of those laborers that might get harmed by their actions.
Based from the above statements and facts, we can clearly see that economic growth imposes negative effects to the trend in the labor market. The importation of the skilled workers leaves the importing country with less competitive laborers while letting the other countries to gain the benefits that are supposedly for the economy of the host country; and the preference of the imported goods than with the locally produced, harms not only the industry but also the laborers, for they could suffer from a decrease in their salary, or worse, loss their jobs.
The behavior of the students in choosing a course also affects the future trend in the labor market. The number of demands for every job line serves as an attraction to the students. This would later on makes the supply of laborers on other job lines to turn down. The imbalance in the supply of the laborers in the economy could cause market turmoil and this should be prevented by the government to happen. The wage rate of the laborers especially the “low profiled” one must be monitored and evaluated often to ensure the welfare of those who are in need.
As we all know, they compose the majority of the number of available workers in the market and by protecting their welfare would mean preserving the good working relationship of the workers and the market. Today labor unions play and have power to fight for the stake of the laborers in the economy and having trouble with them can greatly affect the economic performance of the country. A day mass demonstrations and strikes of the laborers could cause the loss of millions of dollars in terms of production of nay industry.
The importance of understanding the trend in the labor market would really help every sector in the economy.
Amirault, T. A. (1990). Labor market trends for new college graduates [Electronic Version]. Retrieved June 15, 2007 from http://findarticles.com/p/articles/mi_m1155/is_n3_v34/ai_9325762.
Fix, D. S. N. a. M. (2002). Economic and Labor Market Trends [Electronic Version]. Retrieved June 15, 2007.
International-Labour-Organization. (2000). Labour Market Trends and Globalization’s Impact on Them [Electronic Version]. Retrieved June 15, 2007 from http://www.itcilo.it/actrav/actrav-english/telearn/global/ilo/seura/mains.htm.
Marcotte, D. E. (1991). Learning in the Labor Market: The Changing Importance of Education and Training After “Formal” Schooling Ends [Electronic Version]. Retrieved June 15, 2007 from http://ncrve.berkeley.edu/Summaries/1275sum.html.