WASHINGTON, DC—Chairman Dan Coats (R-Ind.) and Vice Chairman Pat Tiberi (R-OH) released a Joint Economic Committee majority report detailing developments that are reshaping the labor market. Research suggests that the recent recession made many of the long-term trends reshaping the labor market more apparent, and this report examines those trends and government policies affecting the workforce.

 

Key points in the report include:

• The American workforce today is older, less mobile, more formally educated, more services-oriented, and increasingly near parity between men and women.
• Automation and globalization continue to “hollow out” middle-skill jobs, though certain government policies have exacerbated job polarization trends.
• Declining business dynamism and slower labor turnover are likely negatively affecting wage growth and labor force participation.
• Population and labor force growth have been slowing in recent decades, and will continue to slow in the foreseeable future, affecting productivity and output growth.
• To the extent that any structural changes introduced by government policy have had negative effects on labor market health, there are a number of reforms that can remedy these effects going forward.

 

The full report is available on the Joint Economic Committee website, here.