The Labor Evolution: An Examination of Changing U.S. Employment
The following is an excerpt from our recent research piece "The Labor Evolution: An Examination of Changing U.S. Employment" The full report can be found here: http://pathlightinvestors.com/sites/default/files/pdfs/Pathlight%20Insights_Labor%20Article.pdf
In the month of September we celebrate Labor Day. We take a moment to tip our caps and salute the men and women who build, support, and advance the most dynamic economy the world has ever known. We give everyone who has worked, is working, or looking for work, a moment to pat themselves on the back and say “job well done” and for many, we allow them to skip the worst workday of the week and spend time doing what makes them happy.
But times are different now. Labor is challenged. Job seekers are taking longer to find employment, and many are forced to take jobs that leave them underemployed (if they can find employment at all). That’s not to say we haven’t made significant progress over the last 4+ years, but the employment picture has changed, and not in the would-be employee’s favor. Greater efficiency through technological advance has sent productivity soaring meaning fewer warm bodies are now needed to perform the daily tasks of business. Additionally, the debt and leverage driven false demand of the 1990’s and first decade of the 2000’s has been replaced by more prudent spending meaning there is less demand for goods and services.