Labor month in review
The
July Review
Productive
computer factories
Retirees
spending more on health insurance
Vietnam-era
veterans in the labor force
Longer workweeks at the top?
"Entrepreneurship, or the creation of a new business or enterprise, is an integral and significant activity in a growing job market," begins Robert W. Bednarzik in the lead article. His report goes on to document in some detail the impact of establishment births (and deaths) on total U.S. employment from 1989 to 1996. In general, the net of births over deaths contributed from one-fifth to one-half of job growth (or served to substantially offset declines). This finding supports and extends earlier studies that came to similar conclusions about manufacturing employment.
The baby-boom generation, called by at least one demographic wag as "the pig in the python," is now approaching retirement. In addition to the impact that this massive employment exodus will have on social security and health care, there will be considerable replacement needs for workers in a wide variety of industries and occupations. The industry that will be most affected is education, according to Arlene Dohm抯 analysis. For example, people in this industry often retire earlier due to the provisions of their pension plans. Transportation, health services, and several manufacturing industries also seem likely to experience significant needs to replace a retiring baby-boom cohort.
Katie Kirkland examines the effect of industry shifts on measurement of the workweek in the private sector. She finds that the long-term decline in the hours worked at the average private sector job has resulted largely from disproportionate employment growth and declining hours in short-workweek industries, such as retail trade and services.
Output per hour increased during the 1987� period in 108 of 120 manufacturing industries analyzed by the Bureau of Labor Statistics. Computer and office equipment posted the largest increase in labor productivity on average�.1 percent per year. Unit labor costs declined by an average of 17.2 percent per year in this industry.
Annual productivity increases and unit labor cost reductions in the electronic components and accessories industry also averaged in the double digits from 1987 through 1997. Productivity increases averaged 19.8 percent per year, and unit labor cost declines averaged 13.0 percent.
Labor productivity is measured by output per hour. Labor productivity for the manufacturing sector as a whole increased by an average of 3.0 percent per year between 1987 and 1997, according to a separate analysis. Find out more in news release USDL 00�5, "Productivity and Costs: Manufacturing Industries, 1987�97."
Retirees spending more on health insurance
Retired households spent more of their budgets on health insurance in 1997 than in 1987. In 1997, the share of retired households� expenditures devoted to health insurance was 7.4 percent, up from 5.2 percent in 1987. The share spent on all other health care expenses fell to 5.9 percent in 1997, from 6.6 percent in 1987.
The health insurance share thus rose 2.2 percentage points, compared with 1.4 percentage points for entertainment and 0.4 percentage point for transportation. The remaining expenditure categories generally had decreases in their spending shares from 1987 to 1997. More information can be found in Issues in Labor Statistics: Consumer Spending During Retirement. (Summary 00�, May 2000).
Vietnam-era veterans in the labor force
In September 1999, 79.7 percent of male veterans of the Vietnam era were in the labor force. Nearly 90 percent of male Vietnam-era veterans were between 45 and 64 years of age in September 1999. Their nonveteran peers had a labor force participation rate similar to that of the veterans: 81.3 percent.
The participation rate for veterans with a service-connected disability was much lower than for nondisabled vets. About 12 percent of male Vietnam-era veterans reported having a service-connected disability; their labor force participation rate was 55.8 percent in September 1999, compared with 83.7 percent for vets without a disability. Learn more in news release USDL 00�5, "Employment Situation of Vietnam-Era Veterans."
More than 60 percent of net employment growth during the 1990s were among managers and professionals, jobs in which long workweeks are considered typical. Many observers believed that managers and professionals were working even longer weeks than in the past.
It is true that a substantial share of these workers put in very long weeks. Nearly 3 in 10 managers and professionals worked 49 hours a week or more in 1999, compared with roughly 2 in 10 for all nonfarm occupations. However, weekly hour averages through 1999 show that the workweek for managers and professionals had actually stayed around 42 hours for the entire 1990s decade. More information can be found in Issues in Labor Statistics: Are Managers and Professionals Really Working More? (Summary 00�, May 2000). (PDF 16K)
Communications regarding the Monthly Labor Review may be sent to the Editor-in-Chief at 2 Massachusetts Avenue NE, Room 2850, Washington, DC, 20212, or faxed to (202) 691–7890.
Within Monthly Labor Review Online:
Welcome | Current
Issue | Index | Subscribe
| Archives
Exit Monthly Labor Review Online:
BLS Home | Publications & Research
Papers
