Posts Tagged "job market"

Wanted: Workers without College Degrees

The PBS NewsHour has some terrific reporting on an important topic: the job market for the two-thirds of working-age adults who don’t have a college degree.

The problem facing many of them is that, despite their hard work, they will earn much less over their lifetimes than college graduates. In stories for the NewsHour, Paul Solman highlights the opportunities available to workers without degrees at a time that many employers are scrambling to find smart, energetic people to fill good-paying jobs with benefits in light manufacturing and the skilled trades.

Women of color are catching on and entering fields like carpentry and plumbing – in fact, they are over-represented in the trades. But Solman talked to employers early this year who cannot find enough young adults willing to consider working in the trades.

This new NewsHour video (above) features IBM, which has to compete for employees with flashy firms like Apple and Google. IBM created an internship program to train people like Reinaldo Rodriguez for “new-collar jobs” that don’t require a bachelor’s degree. The former supervisor for a drug store chain that cut his pay after he was promoted now works in an IBM electronics lab.

Opportunities like these pay enough for people to support their families. And they are a great alternative to borrowing a lot of money for a bachelor’s degree that won’t necessarily guarantee a job. …Learn More

Students graduating during the pandemic

Women Faster to Accept Jobs. Pay Suffers

Women attend college at higher rates than men. Women’s labor force participation was also fairly steady prior to COVID, while men’s declined, and women continue to move into fields traditionally held by men.

Despite all this progress, women still earn much less than men.

Discrimination partly explains the pay gap, as does motherhood, which can interrupt the smooth progression in women’s careers at a critical time. But another explanation doesn’t get as much attention: women earn less because they’re not as confident as men about how much they can get and are more afraid of taking some risks in negotiations with employers.

In the 2018 and 2019 graduating classes at Boston University’s Questrom School of Business, women started their job searches earlier and accepted employers’ offers more quickly, according to a new analysis of student surveys before graduation and after they’d landed a job.

Men, on the other hand, do take risks, extending the negotiation with employers to see how much they can secure or even rejecting a job in hopes that a better one comes along.

Prior to graduating, nearly two-thirds of the women in BU’s business school had accepted a job during their junior or senior years but only about half of the men had, the researchers found.

The male students also enter their pay negotiations with higher expectations of what they want to earn. Their optimism, verging on overconfidence, serves them well. Male graduates from the BU business school earned about $6,700 more, on average, than their female classmates.

Men’s natural advantages in two psychological attributes – optimism and a willingness to take risks – “play a non-trivial role in generating early career earnings gaps among the highly skilled,” the study concluded. …Learn More

Is Job Automation Connected to Disability?

Grocery store clerk with a mask on

Manufacturing workers file more applications to the federal disability program than any other workers. What seems new is that jobs like administrative assistant and retail worker aren’t that far behind.

Is one possible explanation that the computerization of once-routine occupations like these plays a role in decisions to apply for disability benefits?

Consider the example of a retail worker with a bad back who is laid off, or perhaps she quits because she struggled to handle the cognitive challenges of increased automation. Even simple tasks such as processing customer transactions or locating a product at another store now require computer skills. And the worker’s skills may not match up with the technical qualifications needed to find a new job in a labor market where routine jobs are rapidly disappearing.

Given her disability, the worker might decide that her best – or only – option to ensure she has some income is to apply for disability benefits.

Job Automation ChartA study by Mathematica researcher April Yanyuan Wu did not find direct evidence that this skills mismatch triggers applications. But her findings suggest it might be a factor.

Wu provided new statistics on the types of jobs once held by disability applicants and on the changes over time in the job attributes, compared with the changes in job attributes facing the general working population.

Between 2007 and 2014, for example, the share of the applicants’ former jobs that required computer skills rose by 18 percentage points, outpacing the increase for the labor force overall. At the same time, jobs requiring moderate cognitive ability also increased more for people with disabilities than it did for all workers.

Stress is a telling indication of the challenges of increased job automation. The growth in high-stress jobs once held by people with disabilities was much larger than for workers overall, according to the study, which was funded by the U.S. Social Security Administration. …Learn More

People in their Prime are Working Less

Line graph showing labor force participation since 1990The decline in Americans’ labor force activity started around the year 2000 and accelerated after the 2008-2009 recession. Labor force participation is now at its lowest level since the 1970s.

The main reason for the drop is our aging population. But the news in a systematic review of current research in this area is a more troubling trend that’s also driving it: people in their prime working years – ages 25 through 54 – are falling out of the labor force.

Prime-age men are the most active members of the labor force. Yet in 2017, only 89.1 percent of them were either working or seeking a job, down from 91.5 percent in 2000, according to the review by University of Southern California economists.

Prime-age women’s labor force activity also fell, to 75.2 percent in 2017 from about 77 percent in 2000. This decline ends decades in which women were streaming into the nation’s workplaces at an increasing rate. One possible reason for the leveling off is the scarcity of family-friendly policies, including more generous childcare assistance.

The forces pushing and pulling various groups in and out of the labor force make it difficult to pin down the primary reasons for the overall drop in participation. The decline among prime-age men and women may be tied to opioid addiction, alcoholism, and suicide. Other studies point to the surge in incarcerations of black men.

And while technological advances like robots and growing trade with China have increased the need for many highly skilled workers, they have reduced the demand for less-educated, lower-paid people, including U.S. factory workers, in their peak working years. The resulting fall in their wages has also made work less attractive to them. …Learn More

Boomers Cope with Real Financial Pain

We really appreciate readers opening up about their personal experiences in the comments section at the end of each blog. It’s important to stop occasionally and listen to what they have to say.

Aging readers reacted strongly to blog posts in recent weeks about two of the biggest challenges they face: spiraling prescription drug costs and a so-so job market for older workers who aren’t ready to retire.

Here are summaries of their comments on each article:

High Drug Prices Erode Part D Coverage

Readers expressed anger about rising prescription drug prices in response to a blog featuring a diabetic in Arizona who, despite having a Medicare Part D plan, spends thousands of dollars a year for her insulin. She resorts occasionally to buying surplus supplies on eBay from private individuals.

Dr. Edward Hoffer in Boston responded that Americans pay five times more for Lantus than diabetics in the rest of the world. “The same is true for most brand name drugs and most medical devices. It is an embarrassment that we pay double per capita what comparable western countries pay for health care with worse national health statistics,” he said.

Bill MacDonald shared his story in a Tweet and follow-up messages.  This North Carolina retiree on a fixed income has paid $6,000 annually out-of-pocket – a third of his income – for two drugs he’s taken since an automobile accident caused medical problems and depression that led to other issues. He spends $3,200 for one of the drugs, a cholesterol medication called Repatha – that’s his tab after his insurance company pays for most of it. (Last year, Amgen slashed Repatha’s price from more than $10,000 per year to $5,850, which MacDonald hopes will reduce this expense.)

Steve B. was thrilled about a new generic on the market to replace his Rapaflo, a prostate medication. Then he learned that the generic is not much of a bargain either.

Careers Become Dicey after Age 50Learn More