Flexibility, Choice Are Critical Needs Of Modern Workforce.

As Congress reviews the effectiveness of employment policies, decision makers must be aware of the changing demographics of the modern workforce, according to Dr. Ron Bird, chief economist with the Employment Policy Foundation (EPF). Bird testified before the House Workforce Protections Subcommittee on flexibility in the workplace and the Fair Labor Standards Act.

“Most of today’s employment policy framework was constructed over half a century ago – reflecting the experiences of the Great Depression and the social and economic structure of the 1930s and 1940s,” Bird testified. “Today’s American workplace is dramatically different and more complex than the workplace of two generations ago.”

Important workplace changes of the past 50 years focus on five dimensions of change that affect employment policy, Bird said:

Job availability. The labor market has move from an era in which workers are plentiful and job opportunities scarce to a shortage of workers but plentiful job opportunities. In the past 20 years, the American economy has produced 35 million new jobs. The 50.8 million employees now age 45 and over in 2001 will leave the labor force over the next 30 years.

Industrial structure. In the past, most jobs were in centralized manufacturing enterprises. Today, the majority of jobs are in service industries, including positions in the business information, technology and professional services sectors.

Occupational structure. The nature of jobs has transformed from routine, low skill manufacturing jobs to management, technical and professional occupations that require great skills, education and creative knowledge. If past trends continue, more than 43 percent of the jobs in the American workplace will be highly paid managerial, professional and technical related occupations, nearly twice the proportion 30 years ago.

Education. Fifty years ago, jobs required little formal education. Today, positions require a highly educated workforce and ever-increasing educational attainment. The 40-year lifetime earnings of a high school graduate are $1.2 million compared to almost $2 million for a worker with a bachelor’s degree or $2.8 million for someone earning a professional degree.

Diversity. Workers of yesterday went to their jobs with similar expectations and needs, while the employees of today enter the workplace with complex and conflicting expectations and needs. Diversity in the workforce is evident in age, gender, race, education, national origin, occupations and preferences for patterns of work.

“Because current federal workforce policies reflect the 1930s environment, Congress needs to reassess whether employment laws and regulations are meeting employees’ needs in the areas of flexible scheduling, innovative compensation, employment work structures, alternative work arrangements and decision making,” Bird said.

To read Ron Bird’s complete testimony CLICK below (adobe Acrobat required):

http://www.epf.org/commentary/testimony/2002/rb20020306.pdf

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