transformed overnight from physical plants and offices to mobile packages of twenty-first century technology and work trends that tell us old notions of the workforce cannot meet the needs and expectations of a new generation of workers…. Years ago, unemployment meant no jobs. Today, in many cases, unemployment means a disconnect between the new jobs our economy is producing—and the current skill levels of Americans in the workforce. The "skills gap" is too wide for too many Americans.
Chao went on to discuss future anticipated labor shortages. As the post–World War II "baby boom" generation moved into retirement, the number of people in the labor force was projected to decline substantially.
Growth in the Labor Force
Over the last four decades of the twentieth century, the massive numbers of baby boomers and women entering
FIGURE 5.10
the workplace accounted for substantial growth in the American labor force. ("Labor force" includes persons who hold part- or full-time jobs and those who are unemployed but looking for work.) In 1999, 83.1% of the 71.3 million American families had at least one employed member; 93% of those families had at least one member who worked full-time (thirty-five hours or more). The Bureau of Labor Statistics reported that in October 2002 there were 143.1 million people in the civilian labor force, with 134.9 million employed and 8.2 million unemployed.
In a 2002 article for Monthly Labor Review Online, Abraham T. Mosisa reported that much of the rapidly changing ethnic and racial diversity of the workforce could be attributed to the increase in foreign-born workers. In 1960 one in seventeen workers was foreign born; in 2002 one in eight workers was born outside the United States. In 1960 three-fourths of foreign workers came from Europe, which dwindled to one out of every six foreign-born workers in 2002. Shifting immigration patterns brought more immigrants from Latin America and Asia. Foreign-born workers accounted for nearly half of the growth in the labor force between 1996 and 2000.
New Trend in Home Workers
Facilitated by advancing computer technology and Internet access, working from home emerged as a new trend in the 1990s. In 1960 the Census Bureau reported that 4.6 million people worked from home—half of them, however, operated family farms. The number of people working from home dropped more than 50% to a low of 2.1 million by 1980 as the number of family farmers dwindled. By 1990, however, 3.4 million people worked from home. Census Bureau demographer Phillip A. Salopek said in Increase in At-Home Workers Reverses Earlier Trend (March 1998) that "the decade of the 1980s marked a rebirth of work at home in the United States. It is noteworthy that this impressive growth occurred before the expansion of the Internet."
FIGURE 5.11
By 2001 19.8 million people reported they worked at home at least once a week. Of these, 3.8 million people, including many self-employed persons, used their homes as their base of operation. Another three million employees of businesses regularly worked from home an average of eighteen hours per week.
Of the home workers in 2001, 30% (5.9 million) were self-employed. Thirty-three percent of men and 27% of women who worked at home were self-employed. Close to half of the self-employed people operated their businesses from their homes.
Parents Working at Home
Another one million people who were employees of businesses reported that they performed their work at home or used the home as a base of operation. Five percent said they sometimes worked at home in order to attend to family needs, and 2% worked from home to reduce commuting time or expense. Ten million employees of businesses also said they worked from home on an unpaid basis; half took work home to finish or catch up on assignments. (See Table 5.6.)
Norman Nie of the Stanford Institute predicted in 1999 that "by 2005, at least 25% of the American workforce will be telecommuters or home office workers." Nie said "telecommuting may be the first social transformation in centuries that pulls working fathers and mothers back into the home rather than pushing them out." The challenges of recruiting and retaining baby boomers during the latter part of the twentieth century prompted employers to offer family-friendly work schedules, including flexible work hours and options to work from home all or part of the time. In 2001 24.8% of women and 19.1% of men who worked from home at least part of the time had children under the age of six. (See Table 5.7.)
Of those who worked at home in 2001, three-quarters used telephones and computers to conduct business. The Internet or e-mail were used for business purposes by 62.5% of home workers. Just 40% of home workers used fax machines. (See Table 5.8.)
FIGURE 5.12
TABLE 5.4
| Median monthly housing costs for renter-occupied units, 2003 | ||||
| Rank | State | Median | Lower bound | Upper bound |
| SOURCE: "Median Monthly Housing Costs for Renter-Occupied Units (in 2003 Inflation-Adjusted Dollars)," in 2003 American Community Survey, U.S. Census Bureau, American Community Survey Office, 2004, http://www.census.gov/acs/www/Products/Ranking/2003/R16T040.htm (accessed September 13,2004) | ||||
| United States | 646 | 644 | 648 | |
| 1 | Hawaii | 811 | 776 | 846 |
| 2 | California | 810 | 803 | 817 |
| 3 | New Jersey | 790 | 782 | 798 |
| 4 | Massachusetts | 774 | 759 | 789 |
| 5 | Alaska | 747 | 721 | 773 |
| 6 | Nevada | 735 | 719 | 752 |
| 7 | Colorado | 726 | 705 | 747 |
| 8 | Maryland | 723 | 698 | 748 |
| 9 | Connecticut | 721 | 709 | 733 |
| 10 | New York | 703 | 696 | 710 |
| 11 | New Hampshire | 701 | 683 | 719 |
| 12 | Virginia | 696 | 680 | 713 |
| 13 | Washington | 690 | 678 | 702 |
| 14 | Florida | 687 | 677 | 697 |
| 15 | Georgia | 672 | 660 | 684 |
| 16 | Delaware | 664 | 648 | 681 |
| 17 | Illinois | 660 | 652 | 668 |
| 18 | District of Columbia | 658 | 642 | 675 |
| 19 | Arizona | 641 | 626 | 656 |
| 20 | Oregon | 638 | 625 | 651 |
| 21 | Minnesota | 635 | 623 | 647 |
| 22 | Utah | 622 | 597 | 647 |
| 23 | Texas | 621 | 614 | 628 |
| 24 | Rhode Island | 602 | 589 | 615 |
| 25 | North Carolina | 588 | 578 | 598 |
| 26 | Vermont | 578 | 560 | 596 |
| 26 | Wisconsin | 578 | 566 | 590 |
| 28 | Michigan | 574 | 562 | 586 |
| 29 | Pennsylvania | 562 | 554 | 570 |
| 30 | Indiana | 559 | 544 | 574 |
| 31 | South Carolina | 558 | 543 | 573 |
| 32 | Ohio | 552 | 545 | 559 |
| 33 | Kansas | 548 | 522 | 574 |
| 34 | Louisiana | 539 | 526 | 552 |
| 34 | Missouri | 539 | 531 | 547 |
| 34 | Tennessee | 539 | 531 | 547 |
| 37 | Nebraska | 535 | 523 | 547 |
| 38 | Idaho | 534 | 518 | 551 |
| 39 | Maine | 527 | 512 | 542 |
| 40 | Iowa | 520 | 508 | 532 |
| 41 | New Mexico | 519 | 499 | 539 |
| 42 | Oklahoma | 514 | 504 | 524 |
| 43 | Arkansas | 501 | 481 | 521 |
| 44 | Mississippi | 487 | 472 | 502 |
| 45 | Kentucky | 484 | 474 | 494 |
| 46 | Montana | 479 | 467 | 491 |
| 47 | Alabama | 472 | 460 | 484 |
| 48 | South Dakota | 469 | 456 | 482 |
| 49 | Wyoming | 459 | 426 | 492 |
| 50 | North Dakota | 440 | 430 | 450 |
| 51 | West Virginia | 414 | 393 | 435 |
TABLE 5.5
| Median monthly housing costs for specified owner-occupied units, 2003 | ||||
| Rank | State | Median | Lower bound | Upper bound |
| SOURCE: "Median Monthly Housing Costs for Specified Owner-Occupied Units (in 2003 Inflation-Adjusted Dollars)," in 2003 American Community Survey, U.S. Census Bureau, American Community Survey Office, 2004, http://www.census.gov/acs/www/Products/Ranking/2003/R17T040.htm (accessed September 13,2004) | ||||
| United States | 1,204 | 1,200 | 1,208 | |
| 1 | New Jersey | 1,723 | 1,704 | 1,742 |
| 2 | Hawaii | 1,666 | 1,458 | 1,874 |
| 3 | California | 1,660 | 1,647 | 1,673 |
| 4 | Connecticut | 1,598 | 1,570 | 1,626 |
| 5 | Massachusetts | 1,571 | 1,548 | 1,594 |
| 6 | District of Columbia | 1,482 | 1,422 | 1,542 |
| 7 | New York | 1,474 | 1,451 | 1,497 |
| 8 | New Hampshire | 1,420 | 1,397 | 1,443 |
| 9 | Maryland | 1,395 | 1,378 | 1,412 |
| 10 | Rhode Island | 1,381 | 1,359 | 1,403 |
| 11 | Washington | 1,380 | 1,361 | 1,399 |
| 12 | Alaska | 1,374 | 1,347 | 1,401 |
| 13 | Colorado | 1,358 | 1,301 | 1,415 |
| 14 | Illinois | 1,340 | 1,327 | 1,353 |
| 15 | Nevada | 1,279 | 1,244 | 1,314 |
| 16 | Virginia | 1,278 | 1,257 | 1,299 |
| 17 | Oregon | 1,216 | 1,198 | 1,234 |
| 18 | Minnesota | 1,212 | 1,193 | 1,231 |
| 19 | Delaware | 1,184 | 1,167 | 1,201 |
| 20 | Utah | 1,173 | 1,153 | 1,193 |
| 21 | Texas | 1,166 | 1,153 | 1,179 |
| 22 | Georgia | 1,155 | 1,138 | 1,172 |
| 23 | Florida | 1,151 | 1,132 | 1,170 |
| 24 | Arizona | 1,146 | 1,131 | 1,161 |
| 25 | Vermont | 1,142 | 1,120 | 1,164 |
| 26 | Wisconsin | 1,138 | 1,111 | 1,165 |
| 27 | Michigan | 1,122 | 1,104 | 1,140 |
| 28 | Pennsylvania | 1,094 | 1,081 | 1,107 |
| 29 | North Carolina | 1,079 | 1,057 | 1,101 |
| 30 | Ohio | 1,068 | 1,049 | 1,087 |
| 31 | South Carolina | 1,037 | 1,002 | 1,072 |
| 32 | Maine | 1,025 | 999 | 1,051 |
| 33 | Nebraska | 1,002 | 977 | 1,027 |
| 34 | Kansas | 993 | 968 | 1,018 |
| 35 | New Mexico | 963 | 913 | 1,013 |
| 35 | Tennessee | 963 | 944 | 982 |
| 37 | Indiana | 952 | 934 | 970 |
| 38 | Montana | 951 | 921 | 981 |
| 39 | Missouri | 945 | 923 | 967 |
| 40 | Wyoming | 920 | 855 | 985 |
| 41 | South Dakota | 918 | 894 | 942 |
| 42 | Idaho | 917 | 886 | 948 |
| 43 | Iowa | 913 | 880 | 946 |
| 44 | Louisiana | 911 | 887 | 935 |
| 45 | Kentucky | 906 | 883 | 929 |
| 46 | North Dakota | 904 | 883 | 925 |
| 47 | Alabama | 871 | 857 | 885 |
| 48 | Oklahoma | 861 | 842 | 880 |
| 49 | Mississippi | 849 | 818 | 880 |
| 50 | Arkansas | 806 | 782 | 830 |
| 51 | West Virginia | 783 | 743 | 823 |
TABLE 5.6
| Reasons for working at home, by selected characteristics, May 2001 | ||||||||
| (In thousands) | ||||||||
| Reason for working at home | ||||||||
| Characteristic | Worked at home1 | Finish or catch up on work | Business is conducted from home | Nature of the job | Coordinate work schedule with personal or family needs | Reduce commuting time or expense | Local transportation or pollution control program | Some other reason |
| 1Persons who worked at home at least once per week. This total includes persons who did not report a reason for working at home. | ||||||||
| 2Excludes unpaid family workers, not shown separately. | ||||||||
| 3Includes persons who worked at home but did not report pay status. | ||||||||
| 4Includes both the incorporated and unincorporated self-employed. | ||||||||
| Note: Data refer to employed persons in nonagricultural industries who reported that they usually work at home at least once per week as part of their primary job. Dash represents zero. | ||||||||
| SOURCE: "Table 6. Job-Related Work at Home on Primary Job by Reason for Working at Home, Sex, Class of Worker, and Pay Status, May 2001," in Work at Home, U.S. Department of Labor, Bureau of Labor Statistics, May 2001, http://www.bls.gov/news.release/homey.t06.htm (accessed September 14, 2004) | ||||||||
| Total, 16 years and over | 19,759 | 7,375 | 3,770 | 5,937 | 1,076 | 269 | 4 | 1,224 |
| Men | 10,291 | 3,936 | 2,054 | 3,091 | 339 | 157 | 4 | 638 |
| Women | 9,468 | 3,439 | 1,716 | 2,846 | 737 | 112 | — | 587 |
| Class of worker and pay status2 | ||||||||
| Wage and salary workers3 | 13,856 | 6,431 | 1,115 | 4,508 | 706 | 226 | 4 | 795 |
| Paid work at home | 3,436 | 548 | 786 | 1,291 | 379 | 138 | 4 | 275 |
| Unpaid work at home | 10,278 | 5,855 | 300 | 3,165 | 317 | 88 | — | 508 |
| Self-employed4 | 5,860 | 943 | 2,623 | 1,422 | 370 | 43 | — | 426 |
TABLE 5.7
| Working at home by presence of children, by selected characteristics, May 2001 | |||||||
| (Numbers in thousands) | |||||||
| Persons who usually worked at home2 | |||||||
| Percent distribution by class of worker3 | |||||||
| Wage and salary | |||||||
| Characteristic | Total employed1 | Total | Percent of total employed | Total | Paid work at home | Unpaid work at home | Self-employed4 |
| 1Includes persons who did not provide information on work at home. | |||||||
| 2Persons who usually work at home are defined as those who work at home at least once per week as part of their primary job. | |||||||
| 3Unpaid family workers and wage and salary workers who did not report pay status are included in total but not shown separately. | |||||||
| 4Includes both the incorporated and unincorporated self-employed. | |||||||
| Note: Data refer to employed persons in nonagricultural industries. Children are own children and include sons, daughters, step-children, and adopted children. Not included are nieces, nephews, grandchildren, and other related and unrelated children. | |||||||
| SOURCE: "Table 2. Job-Related Work at Home on Primary Job by Sex, Marital Status, Presence and Age of Children, and Pay Status, May 2001," in Work at Home, U.S. Department of Labor, Bureau of Labor Statistics, May 2001, http://www.bls.gov/news.release.homey.t02.htm (accessed September 14,2004) | |||||||
| Total, 16 years and over | 131,803 | 19,759 | 15.0 | 100.0 | 17.4 | 52.0 | 29.7 |
| Married, spouse present | 75,248 | 13,916 | 18.5 | 100.0 | 16.9 | 51.1 | 30.9 |
| Not married | 56,555 | 5,843 | 10.3 | 100.0 | 18.6 | 54.2 | 26.7 |
| Never married | 35,196 | 3,086 | 8.8 | 100.0 | 19.8 | 60.0 | 19.6 |
| Other marital status | 21,358 | 2,757 | 12.9 | 100.0 | 17.2 | 47.6 | 34.7 |
| Without own children under 18 | 81,059 | 11,121 | 13.7 | 100.0 | 15.7 | 52.3 | 31.0 |
| With own children under 18 | 50,744 | 8,638 | 17.0 | 100.0 | 19.6 | 51.6 | 27.9 |
| With youngest child 6 to 17 | 29,227 | 5,058 | 17.3 | 100.0 | 18.0 | 52.8 | 28.5 |
| With youngest child under 6 | 21,517 | 3,580 | 16.6 | 100.0 | 21.8 | 49.9 | 27.2 |
| Men, 16 years and over | 69,659 | 10,291 | 14.8 | 100.0 | 16.0 | 50.5 | 32.6 |
| Married, spouse present | 42,153 | 7,616 | 18.1 | 100.0 | 15.5 | 51.1 | 32.3 |
| Not married | 27,506 | 2,675 | 9.7 | 100.0 | 17.3 | 48.9 | 33.2 |
| Never married | 18,943 | 1,571 | 8.3 | 100.0 | 19.8 | 52.9 | 26.4 |
| Other marital status | 8,562 | 1,104 | 12.9 | 100.0 | 13.7 | 43.2 | 42.8 |
| Without own children under 18 | 43,625 | 5,763 | 13.2 | 100.0 | 14.6 | 48.5 | 35.8 |
| With own children under 18 | 26,034 | 4,527 | 17.4 | 100.0 | 17.7 | 53.1 | 28.4 |
| With youngest child 6 to 17 | 14,216 | 2,652 | 18.7 | 100.0 | 16.8 | 51.0 | 31.6 |
| With youngest child under 6 | 11,818 | 1,875 | 15.9 | 100.0 | 19.1 | 56.1 | 23.9 |
| Women, 16 years and over | 62,144 | 9,468 | 15.2 | 100.0 | 18.9 | 53.7 | 26.5 |
| Married, spouse present | 33,095 | 6,300 | 19.0 | 100.0 | 18.6 | 51.2 | 29.1 |
| Not married | 29,049 | 3,168 | 10.9 | 100.0 | 19.7 | 58.6 | 21.3 |
| Never married | 16,253 | 1,516 | 9.3 | 100.0 | 19.7 | 67.3 | 12.6 |
| Other marital status | 12,796 | 1,652 | 12.9 | 100.0 | 19.6 | 50.6 | 29.3 |
| Without own children under 18 | 37,434 | 5,357 | 14.3 | 100.0 | 16 | ||
| With own children under 18 | 24,710 | 4,111 | 16.6 | 100.0 | 21 | ||
| With youngest child 6 to 17 | 15,011 | 2,406 | 16.0 | 100.0 | 19 | ||
| With youngest child under 6 | 9,699 | 1,705 | 17.6 | 100.0 | 24 | ||
TABLE 5.8
| Job-related work at home and use of electronic equipment, by selected characteristics, May 2001 | ||||||
| (In thousands) | ||||||
| Workers using electronic equipment for work | ||||||
| Characteristic | Worked at home1 | Computer | Internet or e–mail | Fax | Telephone | Other |
| 1Persons who worked at home at least once per week. | ||||||
| 2Excludes unpaid family workers, not shown separately. | ||||||
| 3Includes persons who worked at home but did not report pay status. | ||||||
| 4Includes both the incorporated and unincorporated self-employed. | ||||||
| Note: Data refer to employed persons in nonagricultural industries who reported that they usually work at home at least once per week as part of their primary job. The number of workers using electronic equipment at home exceeds the total number who worked at home because many of these workers used more than one type of equipment. "Other" electronic equipment includes scanners and other types of computer-related peripheral equipment. | ||||||
| SOURCE: "Table 5. Job-Related Work at Home on Primary Job by Usage of Electronic Equipment at Home by Sex, Class of Worker, and Pay Status, May 2001," in Work at Home, U.S. Department of Labor, Bureau of Labor Statistics, May 2001, http://www.bls.gov/news.release/homey.t05.htm (accessed September 14, 2004) | ||||||
| Total, 16 years and over | 19,759 | 15,282 | 12,360 | 7,829 | 15,333 | 1,266 |
| Men | 10,291 | 8,215 | 6,953 | 4,647 | 8,634 | 765 |
| Women | 9,468 | 7,067 | 5,407 | 3,182 | 6,699 | 501 |
| Class of worker and pay status2 | ||||||
| Wage and salary workers3 | 13,856 | 11,059 | 8,872 | 4,668 | 10,246 | 864 |
| Paid work at home | 3,436 | 2,795 | 2,422 | 1,813 | 2,865 | 312 |
| Unpaid work at home | 10,278 | 8,180 | 6,382 | 2,802 | 7,270 | 542 |
| Self-employed4 | 5,860 | 4,193 | 3,474 | 3,140 | 5,061 | 402 |
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