The Middle Georgia Labor Force

1. The Middle Georgia Labor Force Data From The American Community Survey 2006-2010

2. Definitions • The Labor Force – The population of an area aged 16 years & over working or looking for work during a reference week • Labor Force Composition – A group’s share of the total labor force (by age, race, gender, etc.) • Labor Force Participation – The share of the population working or looking for work • Labor Force Growth – A look at the growth of groups since the 2000 Census.

3. The Labor Force • The composition of the labor force depends on the composition of the population & those in it that are willing & able to work • Population movements including migration & growth have a long term influence • Age is a very influential factor • Gender variations exist in all labor markets

12. Labor Force Participation What does it tell us? • How well we are using our potential human capital Why is it important? • It can have a profound impact on the potential growth of the local economy

13. Trends • Highest for Prime Age Workers & those with more education • Goes down during recessions & up during Recoveries • Baby Boomers are entering an age group with a lower participation rate • Rates are trending down overall, but up for older age groups

22. Labor Force Growth & Decline • The labor force is growing older, more racially & ethnically diverse, & composed of more women. • Baby Boomers are aging out of the labor force, slowing labor force growth overall • But Boomers are delaying retirement • Younger age groups are staying in school longer & out of the labor force

25. Declining Teen Labor Force Participation • The participation rate of teenagers has fallen steadily since the late 1970s through both business-cycle expansions and contractions. • School Enrollment - The % of teenagers enrolled in school but not in the labor force has gone from about 40% to almost 60% over the past 25 years.

26. Declining Participation of Young Adult Women • Some are caring for young children. • Offset somewhat by the increase in the labor force participation of single mothers with low levels of educational attainment. • Due at least in part to the work requirements of welfare reform legislation enacted in the 1990s.

27. Steady Decline in Participation of Men aged 25 to 54 • Participation among less educated men has been declining since the mid-1950’s. • Men with more education are more likely to be labor force participants. • Decline among the less educated could be because jobs have become less desirable. • Increased access to Social Security disability benefits.

28. Other Causes • Recessions effects • The changing structure of the job market, • Competition for available jobs from the immigrants & older workers • Increased demand for workers with higher education. • Globalization (the most likely cause)

29. Increased Participation of Older Workers • In 2000, the Social Security "earnings penalty” was removed for workers aged 65 to 70 years who earned wages; • Social Security’s normal retirement age increased; • Defined-benefit pension plan coverage is declining & defined-contribution plans increasing • Less access to employer-provided retiree benefits,

30. Increased Participationof Older Workers • Rising health care costs & increasing out-of pocket expenses • Longer life expectancies, improved health. • Elimination of mandatory retirement age by the Age Discrimination in Employment Act in 1986. • Older individuals are more educated than their counterparts in the past • The financial crisis has hit retirement savings

31. Why is Our Participation Rate So Low? • Drop-outs - By their 25th birthday, 6% of U.S. young adults who had not received a high school diploma had never held a job since turning 18. • Age – slightly larger share of 16-24 year olds • Race/Ethnicity – higher share of groups with lower rates • Other factors mentioned above