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CRS The Labor Force Participation Rate [19 March 2024] https://lnkd.in/g5mUZgth   This In Focus provides an introduction to the Labor Force Participation Rate (LFPR), a key measure of the labor market. It is the fraction of people who are engaged in the labor force, whether they are employed or actively looking for employment.

Our analysis of the Bureau of Labor Statistics jobs report finds the economy added 2.7 million jobs overall in 2023 as workers made their voices heard. “In 2023, workers made history by joining together for better jobs,” said Rebecca Dixon, NELP president and CEO. “From strikes to pushes to increase the minimum wage in states + cities, workers used their power to win + build momentum for 2024.” Read our full analysis: https://lnkd.in/eyghFNv4 

Alabama Department of Labor Secretary Fitzgerald Washington announced Alabama’s labor force participation rate for December 2023 increased to 57.2%. The percentage of prime-age workers increased by four-tenths of a percentage point to 78.5% over the year. Prime-age workers are those aged 25-54 years. Alabama’s preliminary, seasonally adjusted December unemployment rate is 2.6%, up slightly from November’s rate of 2.4%. December’s rate is equal to December 2022’s rate of 2.6%. The rate represents 59,454 unemployed persons, compared to 55,462 in November and 59,986 in December 2022. Read the full December 2023 report here - https://lnkd.in/gAC6S2aJ

Today in Briefing Book, Ernie Tedeschi introduces the Low-Wage Index and shows that we’re currently in one of only two periods of sustained wage growth for low-wage workers since 1979 https://lnkd.in/ed9VecRk

Job market sees remarkable recovery as state and local governments replenish their workforce. However, the success is not without its cost, with rising wage pressures becoming increasingly evident. https://lnkd.in/gnaFrmK2 #JobMarket #wagegrowth

📢 Policy works! 📢   Low-wage workers saw dramatically fast wage growth from 2019-2023—even after accounting for inflation—largely because of federal and state policy measures like COVID relief and minimum wage increases. This is in stark contrast to prior decades. Low-end wages grew about 50% faster in the 29 states (and D.C.) with minimum wage changes, compared with states without any change in their minimum wage. Fast wage growth for low-wage workers wasn’t pure luck—“it was the result of intentional policy decisions during the pandemic that created today’s tight labor market,” said EPI senior economist Elise Gould. But the work is not over: “Policymakers need to strengthen labor standards so that workers can lock in the gains made and continue to build on them,” says Gould. Check out her recommendations in the report: https://lnkd.in/eNqgVYpP

_PRINCIPLES OF LABOUR MARKET ANALYSIS :_ I. DEMAND AND SUPPLY DETERMINANTS A. Demand Determinants 1. Business cycle fluctuations - Demand for labor varies with economic conditions; high during expansion, low during recession. 2. Technological advancements - Automation and technological progress influence labor demand, potentially displacing workers. B. Supply Determinants 1. Population demographics - Population size, age distribution, and workforce participation rates impact labor supply. 2. Education and training - Higher education levels and relevant skills increase labor supply quality. II. WAGE DETERMINATION A. Marginal productivity theory - Wages are determined by the marginal productivity of labor; workers' contributions to output. B. Market power - Employers' and workers' bargaining power affect wage levels. C. Government intervention - Minimum wage laws, labor unions, and collective bargaining influence wage levels. III. LABOR MARKET EQUILIBRIUM A. Intersection of demand and supply - Equilibrium wage and employment levels are reached where demand equals supply. B. Disequilibrium - Surplus (unemployment) or shortage (labor scarcity) occur when demand and supply are imbalanced. IV. LABOR MOBILITY A. Geographic mobility - Movement of workers between regions in response to labor market conditions. B. Occupational mobility - Ability of workers to switch between different jobs or industries. V. INSTITUTIONAL FACTORS A. Government policies - Regulations, taxation, and labor market interventions shape labor market dynamics. B. Labor market institutions - Role of unions, collective bargaining agreements, and employment contracts in setting labor standards. VI. INFORMATION ASYMMETRY A. Knowledge disparities - Differences in information between employers and job seekers affect hiring processes. B. Role of intermediaries - Recruitment agencies, job boards, and online platforms mitigate information gaps in the labor market. #principles #labour #market #analysis

The current scenario underscores a departure from the long-standing correlation between high-paying occupations and rapid wage growth. Labor shortages, often stemming from demographic shifts and skill imbalances, create a competitive environment for employers seeking qualified talent. This scarcity compels companies to reassess their compensation strategies, offering higher wages to attract and retain skilled workers. Simultaneously, the implementation of minimum wage hikes has become a catalyst for change. As governments respond to calls for fair and livable wages, the lower end of the income spectrum experiences a boost. While this is a positive development for workers in lower-paying jobs, it contributes to a compression of the wage distribution. This intricate interplay of factors necessitates a nuanced understanding of the current economic landscape. Businesses face the challenge of adapting their hiring and remuneration practices to remain competitive in a shifting labor market. Policymakers must carefully balance the objectives of stimulating wage growth and addressing income inequality. For individuals, navigating this evolving landscape requires a proactive approach to skill development. The demand for certain skills continues to outpace the supply, and workers who align their expertise with these demands are better positioned to negotiate competitive compensation packages. In essence, the shift in wage dynamics reflects broader societal changes, prompting a reconsideration of traditional assumptions about the relationship between income levels and wage growth. As stakeholders grapple with these shifts, a holistic approach to understanding and responding to the multifaceted forces at play becomes imperative for fostering sustainable economic growth and equitable opportunities. Source: Gad Levanon & Employment Cost Index #labormarket #laborshortage #wagegrowth #minimumwage #economicdevelopment www.WinPinellas.com

Building an economy that shares prosperity with the working families who create our nation’s great wealth takes time. It’s a slow turning ship to scrape back the wealth we create from greedy corporations, but we are making progress through policy reform. Under the Biden Admin’s policies - the lowest income families experienced wage growth for the first time since 1979. 👇 Like you- I want a robust multiracial middle class. It will take pro worker, pro family policies to get us there. ✊#1u #WorkerPower #SharedProsperity

New research from WorldatWork highlights progress in closing the racial wage gap, yet much work remains. Learn how your organization can contribute to meaningful change in the workforce. Explore our latest in-depth analysis and actionable strategies. https://bit.ly/3U5bNzy #RacialWageGap #HRLeaders #TotalRewards #DiversityAndInclusion #HumanResources #TotalRewardsStrategy #RacialEquality #HRProfessionals