THE CHANGING U.S. JOB MARKET
The first decade of the twenty-first century has seen periods of growth and decline in overall employment. Part of this change was due to careers shifting from traditionally important jobs in manufacturing and agriculture to service jobs. Periods of job decline were due to recessions.
Employment DataFollowing the 9/11/2001 terrorist attacks, a recession resulted in a loss of jobs through 2003. From 2003 to 2008 total employment grew by nearly 6 percent. In 2008, 138 million people held non-farm jobs. A recession in 2009 resulted in a loss of more than 775 thousand jobs.
A wave of retirements started in 2011 as the first group of baby boomers , the people born between 1946 and 1964, turned 65. Although retirements will continue, the average age of U.S. workers in 2020 will be over 50. At the same time, a mini-boom of younger workers will cause the 20- to 30-year-old age group to grow faster than the overall labor force for the first time in 25 years. Other groups that will go through higher employment growth rates are Asian-, Hispanic-, and African-American workers. Currently, white non-Hispanic workers make
up 68 percent of the labor force. That number will drop to 64 percent by 2018. Over the last 50 years, one of the most striking trends in employment has been the participation of women. In the early 1960s, 35 percent of women were working outside the home. The number of working women doubled by 2000. By 2018 nearly one half of all jobs (47 percent) in the United States will be held by women.
Pressures on EmployeesAt one time, it was thought that technology would allow people to work fewer hours. This has not occurred. Economic stress has led to downsizing of the number of people employed by many companies. Companies streamlined production and implemented other cost-cutting procedures. Businesses required employees to take on new tasks and work extra hours. Some full-time jobs were reduced to part-time. Wage rates decreased. Many people were forced to find second jobs to meet their economic needs.
A recent survey reported that 7 of 10 parents felt they were not able to spend enough time with their children. At the same time, children see their parents changing jobs, taking on more responsibility, completing additional education to improve career opportunities, and making important decisions to balance work and family life. Those experiences will likely shape the career and family decisions of the next generation.
Economic pressures also resulted in the increased use of contingent workers. A contingent worker is one who has no explicit or implicit contract for long-term employment. About 5 percent of the U.S. workforce (nearly 6 million people) is made up of contingent workers. Some estimates project that number will double in 10 years. Some people take contingent work because they cannot find permanent employment. Others choose contingent work because they like the flexibility it offers.
The first decade of the twenty-first century has seen periods of growth and decline in overall employment. Part of this change was due to careers shifting from traditionally important jobs in manufacturing and agriculture to service jobs. Periods of job decline were due to recessions.
Employment DataFollowing the 9/11/2001 terrorist attacks, a recession resulted in a loss of jobs through 2003. From 2003 to 2008 total employment grew by nearly 6 percent. In 2008, 138 million people held non-farm jobs. A recession in 2009 resulted in a loss of more than 775 thousand jobs.
A wave of retirements started in 2011 as the first group of baby boomers , the people born between 1946 and 1964, turned 65. Although retirements will continue, the average age of U.S. workers in 2020 will be over 50. At the same time, a mini-boom of younger workers will cause the 20- to 30-year-old age group to grow faster than the overall labor force for the first time in 25 years. Other groups that will go through higher employment growth rates are Asian-, Hispanic-, and African-American workers. Currently, white non-Hispanic workers make
up 68 percent of the labor force. That number will drop to 64 percent by 2018. Over the last 50 years, one of the most striking trends in employment has been the participation of women. In the early 1960s, 35 percent of women were working outside the home. The number of working women doubled by 2000. By 2018 nearly one half of all jobs (47 percent) in the United States will be held by women.
Pressures on EmployeesAt one time, it was thought that technology would allow people to work fewer hours. This has not occurred. Economic stress has led to downsizing of the number of people employed by many companies. Companies streamlined production and implemented other cost-cutting procedures. Businesses required employees to take on new tasks and work extra hours. Some full-time jobs were reduced to part-time. Wage rates decreased. Many people were forced to find second jobs to meet their economic needs.
A recent survey reported that 7 of 10 parents felt they were not able to spend enough time with their children. At the same time, children see their parents changing jobs, taking on more responsibility, completing additional education to improve career opportunities, and making important decisions to balance work and family life. Those experiences will likely shape the career and family decisions of the next generation.
Economic pressures also resulted in the increased use of contingent workers. A contingent worker is one who has no explicit or implicit contract for long-term employment. About 5 percent of the U.S. workforce (nearly 6 million people) is made up of contingent workers. Some estimates project that number will double in 10 years. Some people take contingent work because they cannot find permanent employment. Others choose contingent work because they like the flexibility it offers.
BUSINESS AND THE ECONOMY
Businesses make the goods and services you use each day. That includes the products and services used by other businesses as well as those needed by individual consumers. In 2009, all businesses worldwide produced more than $70 trillion of goods and services. U.S. businesses were responsible for almost 20 percent of that production. Nearly 25 million full- and part-time businesses produce those goods and services.
Size of U.S. BusinessesMost U.S. businesses are quite small. The largest number, nearly 19.5 million businesses, have no employees other than the owner. About 6.5 million companies employ fewer than 20 people. Just over 886,000 employ 20–100 people. About 182,000 large U.S. businesses employ 100 or more workers. Of those large companies, 890 employ more than 10,000 people. Figure 5-1 shows the distribution of U.S. businesses by employment size.
Businesses make the goods and services you use each day. That includes the products and services used by other businesses as well as those needed by individual consumers. In 2009, all businesses worldwide produced more than $70 trillion of goods and services. U.S. businesses were responsible for almost 20 percent of that production. Nearly 25 million full- and part-time businesses produce those goods and services.
Size of U.S. BusinessesMost U.S. businesses are quite small. The largest number, nearly 19.5 million businesses, have no employees other than the owner. About 6.5 million companies employ fewer than 20 people. Just over 886,000 employ 20–100 people. About 182,000 large U.S. businesses employ 100 or more workers. Of those large companies, 890 employ more than 10,000 people. Figure 5-1 shows the distribution of U.S. businesses by employment size.
Roles of BusinessBusinesses play several key roles in the U.S. economy. The most important role of businesses is to make and distribute products and services needed by consumers, government, and other businesses. Businesses make the clothing, movies, music, food, and other items you use every day.
Businesses provide employment for millions of people. Employee wages are used to purchase goods and services. Profits earned by businesses are used to compensate owners and investors. Most businesses pay taxes to federal, state, and local governments. Governments spend these taxes to provide services such as clean water, well-maintained streets, police and fire protection, hospitals, and schools.
Impact on a CommunityA business can have an important impact on the community in which it operates. When a new business opens, it pays wages to its workers. It also buys goods and services from other businesses in the area. This money has not been in the community before. Employees and businesses in turn spend much of the money to purchase things they need.
The money spent may result in the need for more employees in the community. They will need housing, automobiles, food, and entertainment. They will pay taxes to the community to support needed community services.
When a large business opens in an area, other businesses will often locate there to support the larger business. Small businesses may be started to meet the needs of the residents and other businesses. Successful businesses contribute to more jobs, more income, and a thriving economy in the communities where they operate.
Business ActivitiesBusinesses may be large or small, simple or complex. A business might operate in only one community. It may have many locations across the nation or around the world. Although there are many types and sizes of businesses, all firms perform six basic activities.
Generating Ideas A business begins with a new idea. Someone must have an idea for a new product or service or a new way to carry out a business process. A business must continue to improve and develop new ideas in order to remain successful. Businesses must remain competitive with other firms that sell similar goods and services. Many companies have a research and development department that works full-time to discover new product, service, and operating ideas.
Raising Capital Businesses need financial resources to operate. They use these financial resources to buy buildings and equipment, hire and train workers, and complete day-to-day business operations. A large amount of capital is needed to start most businesses. Some capital comes from owners. Most is obtained through loans from financial institutions or from investors.
A business needs more capital as it develops and grows. Some of that capital will come from reinvested profits. A business will need to continue to work with banks and attract additional investors to have enough money for ongoing operations.
Employing and Training Personnel Businesses need human resources. Even businesses that begin with no employees other than the owner will add part-and full-time employees as they grow. Businesses have procedures for recruiting, hiring, and training employees. They pay wages, benefits, and employment taxes. New employees receive training in order to perform their jobs correctly. Further training will be necessary when procedures change, new tasks are added, or technology is introduced. Buying Goods and Services All businesses buy goods and services. Businesses use many of the purchases for their own operations. Other purchases are resold. Manufacturers of automobiles must buy steel, aluminum, and plastics to be used to form the frame and body of new cars. They will also purchase tires, batteries, airbags, and air conditioning units that will be installed on the production line.
A retailer buys an assortment of products to sell to customers. It must also buy the display equipment, computers, and cleaning supplies used to operate the business. Businesses purchase an array of services from other companies. These include advertising, legal and accounting services, lawn care and building maintenance, and security.
Businesses provide employment for millions of people. Employee wages are used to purchase goods and services. Profits earned by businesses are used to compensate owners and investors. Most businesses pay taxes to federal, state, and local governments. Governments spend these taxes to provide services such as clean water, well-maintained streets, police and fire protection, hospitals, and schools.
Impact on a CommunityA business can have an important impact on the community in which it operates. When a new business opens, it pays wages to its workers. It also buys goods and services from other businesses in the area. This money has not been in the community before. Employees and businesses in turn spend much of the money to purchase things they need.
The money spent may result in the need for more employees in the community. They will need housing, automobiles, food, and entertainment. They will pay taxes to the community to support needed community services.
When a large business opens in an area, other businesses will often locate there to support the larger business. Small businesses may be started to meet the needs of the residents and other businesses. Successful businesses contribute to more jobs, more income, and a thriving economy in the communities where they operate.
Business ActivitiesBusinesses may be large or small, simple or complex. A business might operate in only one community. It may have many locations across the nation or around the world. Although there are many types and sizes of businesses, all firms perform six basic activities.
Generating Ideas A business begins with a new idea. Someone must have an idea for a new product or service or a new way to carry out a business process. A business must continue to improve and develop new ideas in order to remain successful. Businesses must remain competitive with other firms that sell similar goods and services. Many companies have a research and development department that works full-time to discover new product, service, and operating ideas.
Raising Capital Businesses need financial resources to operate. They use these financial resources to buy buildings and equipment, hire and train workers, and complete day-to-day business operations. A large amount of capital is needed to start most businesses. Some capital comes from owners. Most is obtained through loans from financial institutions or from investors.
A business needs more capital as it develops and grows. Some of that capital will come from reinvested profits. A business will need to continue to work with banks and attract additional investors to have enough money for ongoing operations.
Employing and Training Personnel Businesses need human resources. Even businesses that begin with no employees other than the owner will add part-and full-time employees as they grow. Businesses have procedures for recruiting, hiring, and training employees. They pay wages, benefits, and employment taxes. New employees receive training in order to perform their jobs correctly. Further training will be necessary when procedures change, new tasks are added, or technology is introduced. Buying Goods and Services All businesses buy goods and services. Businesses use many of the purchases for their own operations. Other purchases are resold. Manufacturers of automobiles must buy steel, aluminum, and plastics to be used to form the frame and body of new cars. They will also purchase tires, batteries, airbags, and air conditioning units that will be installed on the production line.
A retailer buys an assortment of products to sell to customers. It must also buy the display equipment, computers, and cleaning supplies used to operate the business. Businesses purchase an array of services from other companies. These include advertising, legal and accounting services, lawn care and building maintenance, and security.
Marketing Goods and Services Marketing refers to the activities directed at providing the goods and services wanted by a business's customers. Without marketing, even the best products and services may remain unsold. Businesses need to understand and perform many marketing activities. They must satisfy customers who usually can choose to buy from competitors offering similar products and services.
Maintaining Business Records All businesses must have some type of record-keeping system. Owners and managers need records to track performance and make decisions. Customers need information about orders and payments. Businesses are required by government to keep records and submit information. Today, technology is available to make record keeping easy and accurate. With computer technology, business owners and employees can quickly access information needed to understand business performance and solve problems.
TYPES OF BUSINESSESYou, your family, and your friends use a variety of businesses to buy the things you want and need. You recognize other businesses but never use them. And, you don't even know about many others. There are three major categories—producers, intermediaries, and service businesses.
ProducersProducers create the products and services used by individuals and other businesses. They are responsible for using resources to make something that is needed by others. A business that takes resources from nature for direct consumption or for use in developing other products is an extractor . Extractors pump oil, mine coal, or cut timber. Farmers cultivate land and use other natural resources to grow crops and raise livestock for consumption. Manufacturers get supplies from other producers and convert them into products. They sell their products to consumers and other businesses.
Business activities start with producers. A builder obtains lumber, cement, shingles, carpet, and paint to construct a house, factory, or office building. A cereal manufacturer buys wheat and oats, sugar, and dried fruit as well as cardboard, glue, and ink to process and package your favorite breakfast food.
Maintaining Business Records All businesses must have some type of record-keeping system. Owners and managers need records to track performance and make decisions. Customers need information about orders and payments. Businesses are required by government to keep records and submit information. Today, technology is available to make record keeping easy and accurate. With computer technology, business owners and employees can quickly access information needed to understand business performance and solve problems.
TYPES OF BUSINESSESYou, your family, and your friends use a variety of businesses to buy the things you want and need. You recognize other businesses but never use them. And, you don't even know about many others. There are three major categories—producers, intermediaries, and service businesses.
ProducersProducers create the products and services used by individuals and other businesses. They are responsible for using resources to make something that is needed by others. A business that takes resources from nature for direct consumption or for use in developing other products is an extractor . Extractors pump oil, mine coal, or cut timber. Farmers cultivate land and use other natural resources to grow crops and raise livestock for consumption. Manufacturers get supplies from other producers and convert them into products. They sell their products to consumers and other businesses.
Business activities start with producers. A builder obtains lumber, cement, shingles, carpet, and paint to construct a house, factory, or office building. A cereal manufacturer buys wheat and oats, sugar, and dried fruit as well as cardboard, glue, and ink to process and package your favorite breakfast food.
IntermediariesIntermediaries are businesses involved in selling the goods and services of producers to consumers and other businesses. The most common types of intermediaries are retailers and wholesalers. Many other businesses focus on one or a few activities that assist in distributing and selling products and services. Specialized intermediaries include transportation companies, advertising agencies, storage centers, sales offices, and data processing centers.
Service BusinessesMany businesses do not make products. They offer something that is intangible, meaning it has no physical qualities. A service business carries out activities that are consumed by its customers. It does not offer products for sale. Service businesses include dentists, physicians, and lawyers as well as pet sitters, painters, and furniture movers. New types of service businesses are Internet service providers, web designers, and online travel agents. Businesses as well as final consumers use services. A business might contact an international trade specialist to help it set up a sale to a new customer in Africa. A communications firm could design and install a new phone system for large telemarketing businesses.
Service businesses are the fastest growing part of the economy. More than 60 percent of all U.S. employment is now in service-producing businesses. While you often hear about low-pay and low-skill service jobs, there are many new businesses offering professional and technical services requiring highly educated employees.
Service BusinessesMany businesses do not make products. They offer something that is intangible, meaning it has no physical qualities. A service business carries out activities that are consumed by its customers. It does not offer products for sale. Service businesses include dentists, physicians, and lawyers as well as pet sitters, painters, and furniture movers. New types of service businesses are Internet service providers, web designers, and online travel agents. Businesses as well as final consumers use services. A business might contact an international trade specialist to help it set up a sale to a new customer in Africa. A communications firm could design and install a new phone system for large telemarketing businesses.
Service businesses are the fastest growing part of the economy. More than 60 percent of all U.S. employment is now in service-producing businesses. While you often hear about low-pay and low-skill service jobs, there are many new businesses offering professional and technical services requiring highly educated employees.