Future Labor Markets


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  • Future Labor Markets

    1. 1. Future Labor Markets Joseph Hall, Mukesh Jain, Shaun Lee , Alana Pechon , Karl Skucha, Matthew Wise
    2. 2. Introduction of Labor Markets <ul><li>Labor Markets result from relationships between: </li></ul><ul><ul><li>Population </li></ul></ul><ul><ul><li>Labor Force </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Demand for goods/services </li></ul></ul>
    3. 3. Historical Overview of Labor Markets <ul><li>Examining Past enables Prediction of Future Labor Markets: </li></ul><ul><ul><li>Shift from hunter gatherer to agricultural </li></ul></ul><ul><ul><li>Technological development </li></ul></ul><ul><ul><li>Globalization of world economy and labor markets </li></ul></ul>
    4. 4. Economic Trends <ul><li>Developed Economies </li></ul><ul><ul><li>Majority of workers engaged in wage and salaried employment </li></ul></ul><ul><ul><li>Service Sector > Manufacturing Industry > Agriculture </li></ul></ul><ul><ul><li>Majority of firms outsource major business functions </li></ul></ul><ul><li>Developing Economies </li></ul><ul><ul><li>Majority continue as self-employed workers </li></ul></ul><ul><ul><li>High agricultural employment </li></ul></ul><ul><ul><li>Inefficient use of labor </li></ul></ul>
    5. 5. Industry Trends <ul><li>Financial Institutions </li></ul><ul><ul><li>Outsourcing for back-office: Internal paperwork and HR </li></ul></ul><ul><ul><li>Business Processes Outsourcing (BPO) </li></ul></ul><ul><li>IT Services </li></ul><ul><ul><li>Offshore outsourcing is still prevalent </li></ul></ul><ul><ul><li>Crowdsourcing is the new trend </li></ul></ul><ul><li>Software </li></ul><ul><ul><li>Increasing reliance on global outsourcing </li></ul></ul><ul><ul><li>Backlash trend of in-housing and the fear of losing core competencies </li></ul></ul>
    6. 6. Industry Trends <ul><li>Manufacturing / Construction </li></ul><ul><ul><li>Outsourcing and Offshoring are still popular </li></ul></ul><ul><ul><li>Outsourcing causes job insecurity </li></ul></ul>Source: North Carolina State University (2006) Supply Chain Management: Current Trends in Production Labor Sourcing
    7. 7. Demographic Issues <ul><li>In Europe, the 18-65 year old population has stopped growing and is beginning to decline </li></ul><ul><ul><li>Shrinking labor pool may be mitigated by social security reforms </li></ul></ul><ul><li>Asia & North America: Labor force continuing to grow, at slower pace than recent years </li></ul><ul><ul><li>Asia: labor force growing due to population growth </li></ul></ul><ul><ul><li>North America: labor force growing despite retirement of baby boomers due to immigration </li></ul></ul>
    8. 8. Technology Issues <ul><li>Advances in communications and networking globalize the workforce. </li></ul><ul><li>Concentrated, integrated mobile computing means more computational capability in the hands of the workforce. </li></ul><ul><li>Sensor networks (RFIDs, etc.) allow real-time, precision decision-making </li></ul>
    9. 9. Outsourcing <ul><li>Driven by desire to reduce costs </li></ul><ul><li>Companies attempt to maintain “core competencies” in-house </li></ul><ul><li>On the upswing since the mid-1990s </li></ul>
    10. 10. Crowdsourcing <ul><li>Outsource + open source = crowd source </li></ul><ul><li>Crowdcasting is exclusive crowdsourcing </li></ul><ul><li>Features </li></ul><ul><ul><li>Talent can be low to high skilled </li></ul></ul><ul><ul><li>Materials required can vary </li></ul></ul><ul><ul><li>Great for information goods </li></ul></ul><ul><li>Limitations </li></ul><ul><ul><li>Requires low overhead </li></ul></ul><ul><ul><li>Quality control can be a challenge </li></ul></ul>
    11. 11. Crowdsourcing Today and Tomorrow <ul><li>Examples today </li></ul><ul><ul><li>Low skill: InChorus, MTurk </li></ul></ul><ul><ul><li>High skill: InnoCentive, Elance, MTurk </li></ul></ul><ul><li>The future </li></ul><ul><ul><li>Expect crowdsourcing to grow </li></ul></ul><ul><ul><li>Move to new industries: journalism, etc. </li></ul></ul><ul><ul><li>No “eBay” in this area, MTurk close </li></ul></ul>
    12. 12. Organizational Trends <ul><li>Traditionally vertical chain of command </li></ul><ul><li>Flat organizations popularized in last two decades (Silicon Valley) </li></ul><ul><li>Decentralization </li></ul><ul><ul><li>Home offices </li></ul></ul><ul><ul><li>mMNCs </li></ul></ul>
    13. 13. Micro Multinationals <ul><li>Characteristics </li></ul><ul><ul><li>Small global start-ups </li></ul></ul><ul><ul><li>Communicate using Web 2.0 features </li></ul></ul><ul><li>Advantages </li></ul><ul><ul><li>Lower labor costs </li></ul></ul><ul><ul><li>Higher pool of talent to choose from </li></ul></ul><ul><ul><li>Small companies can “play big” </li></ul></ul>
    14. 14. Micro Multinationals <ul><li>Labor Structure </li></ul><ul><ul><li>Extensive documentation (i.e. wikis) </li></ul></ul><ul><ul><li>Lower micromanagement </li></ul></ul><ul><ul><li>Communication across different time zones </li></ul></ul><ul><ul><li>Location much less important </li></ul></ul><ul><li>Impact </li></ul><ul><ul><li>Facilitates entrepreneurship </li></ul></ul><ul><ul><li>Job creation, especially in foreign sectors </li></ul></ul>
    15. 15. Predictions <ul><li>Technology increases access to global labor </li></ul><ul><li>Lower barriers to entry for global firms (mMNCs) </li></ul><ul><li>Distributed work forces </li></ul><ul><li>Outsourcing will continue to be prevalent </li></ul><ul><li>Crowdsourcing will grow significantly </li></ul>