Labor Market Trends
Among the most striking labor market trends of the past 50 years is the shift in employment from the goods-producing sector to the service sector. Two interrelated forces have generated this long-term change in the sectoral composition of U.S. employment. One is the changing composition of output, reflecting changes in taste, real income, and relative prices. The other is rising labor productivity in many industries, which resulted from the application of new technologies and knowledge, much of it embedded in modern capital equipment and better-educated workers, enabling the introduction of new products and services.
Suggested citation: "Labor Market Trends," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-09, pp. 12-14, 09.01.2000.