Term Paper: Changing Job Market

Pages: 8 (2762 words)  ·  Bibliography Sources: 5  ·  Level: College Junior  ·  Topic: Economics  ·  Buy for $19.77

Changing Job Market

Globalization has been causing major changes in the labor market. As a number of workers in developed countries, are forced to adapt to increased amounts of immigration and outsourcing. This is problematic, because when these kinds of changes being to shape, is the point that the job market evolves dramatically. As once secured jobs are no longer what they use to be, as layoffs and other factors will become increasingly common. To understand what is taking place requires, being able to examine the labor market and how these changes could affect future employment.

Over the last several years, globalization has been having a profound impact on the job market. Where, a number of different companies have begun to outsource a variety of jobs overseas. Part of the reason for this is because of: labor shortages and an aging population in the United States. As a result, this has meant that the job market has become increasingly competitive over the last several years. Where, workers no longer have the luxury of assuming that they can remain in certain occupations, for a particular employer until retirement. Instead, they have to be able to adapt to the various changes that are taking place in the economy. This is despite the fact, that many employers have shed a number of highly skilled positions during the recession (creating a job shortage of 2.7 million people). (Gordon, 2010) This is problematic, because once the economy begins to improve is when the underlying labor shortages will become clear. As employers are adding jobs to keep up with increasing demand, while having to be able to fill key losses that are experienced from retirement and forced layoffs. This is significant, because it shows how the job market is constantly changing, which means that everyone must be prepared to adapt to these changes that are occurring. To fully understand how to plan for what is taking place requires: understanding the current changes that are occurring in the economy, what the job market will look like in the future and how workers can be prepared for these changes. Together, these different elements provide the greatest insights, as to how an individual can remain competitive in the job market.

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Understanding the Current Changes that are Occurring in the Economy

The basic function of any business is to make money. Where, those organizations that are able to maximize their profits will see a substantial increase in: their influence and ability to enhance the bottom line in the future. As they can use the goodwill and rapport that they have established with customers, to market a number of different products in the: the coming months to years. This has caused businesses, to seek out various ways to achieve this objective as much as possible. When you combine this with a shift that has been occurring (from globalization), as a number of trade barriers, have made building and delivering various products / services cheaper. This has lead a number of companies outsourcing a variety of different jobs, as they see these reduced barriers as an opportunity to increase their profits. Then, when you consider the fact that a number of developing countries are experiencing aging populations, means that labor shortage are more likely to become common. A good example of this can be seen with information that was compiled by the Morbidity and Mortality Weekly Report. Where, they found that in the United States the number of individuals over age 65 will increase from: 12.4% of the population in 2000 to 19.6% by 2030 (an increase of 36 million people). ("Public Health and Aging," 2003) This is significant, because it shows how shifts in the population demographic are helping to contribute to labor shortages in a number of developing countries. To fill these holes in the workforce, businesses will have one of two choices to include: hire an increasing number of immigrants or outsource various services. Immigration is helpful but only to a certain extent. Part of the reason for this is because, there are a number of different restrictions placed on how many work visas are given to immigrants each year. At the same time, there is more than likely a mountain of paperwork and bureaucratic red tape to go through. To overcome these challenges, some businesses have attempted to hire illegal immigrants. These are people who have entered the country illegally, often seeking out low paying jobs. However, this practice has been facing increased amounts of scrutiny and enforcement activities from law enforcement. As a result, many businesses have been turning to outsourcing as an effective solution for addressing these challenges. This is because in many countries (such as Ireland or India), employers can hire skilled workers (who are fluent English) that can perform the same job, only cheaper. This gives them a competitive advantage, as they can increase their profits and reduce their underlying costs. This is important, because it shows how both of these different factors are affecting the way employers hire and utilize employees around the world. Where, the two elements will play an interconnected role, in determining the underling levels of outsourcing that are taking place at a company. As countries with tougher immigration policies, will see a large number of employers utilize outsourcing, to help augment their strategy. Evidence of this can be seen by looking no further than, a study that was conducted by the St. Louis Federal Reserve. Where, they found that when a country reduces the number of immigration barriers, they will see a reduction in the amount of jobs that are being outsourced overseas. This is because the increased amounts of immigration are helping to provide an effective solution for addressing: rising labor costs and the shortages they are facing in the workforce. (Wall, 2007) This is significant, because it shows how the U.S. labor market is being affected by: immigration policy, changes in the population demographic and increasing costs.

When you look at what it taking place, it is clear that the labor market is shifting. This means that individuals must be prepared for the reality that their jobs could be outsourced. Where, there is no longer the idea of job security. Instead, everyone is forced to adapt to the changes that are taking place in the labor market, by having some sort of specialized skill. This is how they can be able to overcome the various challenges that they are facing in the future.

What will the Job Market look like in the Future?

The improvements in technology and the shift towards globalization will more than likely cause many individuals, to face increased amounts of uncertainty, as far as employment is concerned. Where, the shifts in the population, labor shortages and costs will more than likely cause the various amounts of competition in the workforce to become more severe. This means that an individual will have to compete with someone not only on a local level, but possibly an international level. As a result, the various pressures on the labor markets will continue to increase dramatically into the future. A good example of this can be seen with information compiled by the President's Council of Economic Advisors. Where, they found that the economy is going through a dramatic shift that will continue well into the future. As select industries will see increased amounts of consumer demand, while others will experience a dramatic downsizing. Commenting about what was taking place the report found, "That the ascending order of job growth sub-sectors are: air transport; business services; nursing homes; wholesale trade; physicians; education social services and nonprofits; restaurants and bars; private hospitals; construction; other medical services and dentists (i.e. home health care, outpatient care, and medical and diagnostic laboratories)." This is important, because it highlights a shift that is occurring in the economy as certain industries, will experience long-term growth in the future. However, at the same time it is important for the individual to have some kind of specialized skill. In this aspect, the report from the President's Council of Economic Advisors observed, "Occupations requiring higher educational attainment are projected to grow much faster than those with lower education requirements, with the fastest growth among occupations that require an associate's degree or a post-secondary vocational award. Health care is forecasted to remain a large source of job growth in the labor market. The long-term trend toward more employment in health care is expected to continue, with many health care occupations, including medical records and health information technicians, registered nurses, clinical laboratory technicians, and physical therapists, expected to grow." (Wolhemuth, 2009) This is significant, because it shows the shift that is occurring in the labor market, is having a dramatic impact upon future trends in employment. For many individuals, this means that they must be prepared for what is taking place by ensuring that they are highly educated, with a specialized skill that is in demand. This is how, they will be able to adapt to the changes that… [END OF PREVIEW]

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