Changes can have profound social effects, - the expansion of the service sector, for example, means more women being employed part time
The changing labour market
THE CHANGINGLABOUR MARKET
How is the labour marketchanging? The world of work is a dynamic arena of constant development and change This presentation describes some of the fundamental changes and explores implications for helping your son/daughter with their career choices
Some changes take place over arelatively long time at a slower rate, suchas the decline of UK manufacturingsector. Others, over a matter of monthsor years, such as the rise of mobiletechnology.
Some industries,such asconstruction, arevery sensitiveand prone topeaks andtroughs, as wellas significantregionalvariations.
Despite economists’ best efforts, somechanges are not foreseen, making somelabour market predictions, especially inthe long-term, unreliable, and vulnerableto, for example, changes in governmentpolicy or world events.Fundamental changes in the labourmarket include: The global economy Technology Demographics
The Global Economy Economies and businesses are international. Language skills are highly prized. Firms outsource tasks abroad to cut costs. The level of the migrant workforce is increasing both in and out of the UK. The UK struggles to compete globally because of skill shortages in science, engineering, technology and maths (STEM).
Technology The pace of change is fast and accelerating. Young people are part of the networked generation. IT skills are essential at all levels. STEM skills are increasingly in high demand. The number of unskilled jobs available is reducing and will continue to fall.
Demographics Our ageing, ‘top heavy’ population has major implications for the labour market – people will be working for longer. Young people trying to launch careers will be competing against an older, experienced workforce. There is increasing demand for scientists and health care workers to deal with the implications of ill health in the elderly.
What’s changed in the UK labourmarket in 2011? More young people stayed on in education as job opportunities dropped. Manufacturing output slowed as demand and exports weakened – this is set to continue. Distribution, hotels and restaurants, transport, storage and communications also experienced positive growth trends. Finance and business services growth was slow, but is expected to increase.
Current UK labour market foryoung people Current economic climate is very hard for young people. Good levels in English and Mathematics are a precondition for access to a range of academic and vocational courses.
What does this mean for youngpeople? A vanishing youth labour market. High returns (on average) for education and qualifications. High aspirations for Higher Education. High returns on employment experience. Rapid economic change.
What do you need to think about? You need to prepare your son/daughter to enter a volatile job market, which requires them to be aware of their transferable skills. Everyone needs to be aware of skills shortage areas and of the fact that employers expect an increasingly better qualified workforce. Young people need to fulfil their academic potential and develop strong employability skills to compete in the job market.