Transcript Document
Placeholder image borrowed from the web The Future of Work In New York State Work is changing Robots and automation A networked economy Continued productivity increases Near-zero marginal cost for goods from pharmaceuticals to video games to online college classes has potentially significant implications for production A “sharing economic” poses threats but also offers opportunities Implications for Job quality Who gets which jobs Do we all work less, or do some work more and some not at all? Education needed for jobs…and, changing jobs to take advantage of increased education. Income polarization or a broad middle class? The labor force is changing, too Discussion has often focused on the changing nature of jobs. Let’s look, as well, at the changing labor force. What can we expect in New York over the next 30 years. Population is expected to grow, but with a smaller share in working age (working age=20-65 years old) 25 70% Total population 65% 20 60% 61% Millions 15 58% Ratio of Working Age to Total 55% 10 50% 5 actual 45% projected 0 40% 1980 1990 2000 2010 2020 2030 2040 New York State 2010 to 2040 projected change • Total population: 7% • 65 and older: 41% • 70 and older 50% Population is expected to grow, but with a smaller share in working age 25 70% Total population 65% 20 60% 61% Millions 15 58% Ratio of Working Age to Total 55% 10 50% 5 actual 45% projected 0 40% 1980 1990 2000 2010 2020 2030 2040 Implications • Higher productivity needed from a smaller labor force? • Higher share of working-age people in the labor force? • Changing idea of “working age?” Population is expected to grow, but with a smaller share in working age 25 70% Total population 65% 20 60% 61% Millions 15 58% Ratio of Working Age to Total 55% 10 50% 5 actual 45% projected 0 40% 1980 1990 2000 2010 2020 2030 2040 What could change the projection? domestic migration Immigration Not much else (fertility rate & longevity change slowly & pretty predictably) It is hard to imagine change in NYS on the scale some states have seen 50 If NY grows at the rate fast-growing states did over the past 30 years 45 40 35 Standard projection Millions 30 25 20 15 10 actual 5 If NY grows at the rate fast-growing states did over the past 30 years projected 0 1980 1990 2000 2010 2020 2030 2040 Domestic migration and immigration make a big difference. Aging population does as well. The five fastest-growing states over the past 30 years more than doubled in population, something hard to imagine in NYS. The five slowest-growing states over the past 30 years averaged very close to the actual projection for NYS over the next 30 years. It is hard to imagine change in NYS on the scale some states have seen 50 If NY grows at the rate fast-growing states did over the past 30 years 45 40 35 Standard projection Millions 30 25 20 15 10 actual 5 If NY grows at the rate fast-growing states did over the past 30 years projected 0 1980 1990 2000 2010 2020 2030 2040 Still, keep in mind that, as philosophers from Niels Bohr to Yogi Berra have said: “It’s tough to make predictions, especially about the future.” It is hard to imagine change in NYS on the scale some states have seen 50 If NY grows at the rate fast-growing states did over the past 30 years 45 40 35 Standard projection Millions 30 25 20 15 10 actual 5 If NY grows at the rate fast-growing states did over the past 30 years projected 0 1980 1990 2000 2010 2020 2030 2040 Could anything realistically make the fast growth projection happen? Climate change repopulating upstate cities, as the coasts and Southwest become less attractive? Is the education shortfall in the labor force…or in the jobs? College degree projected actual 37% 38% 32% 27% 25% 25% Share of the labor force with a BA or higher 19% Share of jobs requiring a BA or higher 1980 1990 2000 2010 2012 2022 We often hear that future workers will need more education to compete. No doubt it’s good advice to invest in education. But, the jobs that the Bureau of Labor Statistics projects will be in NYS in 10 years don’t require even as much education as workers already have. Maybe the focus should be on restructuring jobs so that they make better use of the education—and potential productivity—of workers? Is the education shortfall in the labor force…or in the jobs? Less than High School projected actual 25% 27% 21% 15% Share of the labor force with less than a high school degree 13% 10% 1980 1990 2000 2010 Share of jobs requiring less than a high school degree 9% 2012 2022 A quarter of jobs in NYS require less than a high school degree…and that number is projected to grow, not shrink. How do we improve wages in those jobs, make sure there are career ladders up from them, and urge on the public, private and nonprofit sectors a different business model so that there is a better match between the skills of the labor force and the jobs available? Top 10 fastest growing jobs projected for NYS 2012 to 2022 1. Home Health Aides 2. Personal Care Aides 3. Food Preparation and Serving Workers 4. Retail Salespersons 5. Waiters and Waitresses 6. Janitors and Cleaners 7. Secretaries and Administrative Assistants 8. Registered Nurses 9. Restaurant Cooks 10. General and Operations Managers Today 39 percent of NYS workers are people of color. Among the jobs projected to grow fastest, the share is: Share Median Wage 1. Home Health Aides 73% $21,000 2. Personal Care Aides 59% $23,000 3. Food Preparation and Serving Workers 53% $18,000 4. Retail Salespersons 45% $22,000 5. Waiters and Waitresses 44% $19,000 6. Janitors and Cleaners 58% $28,000 7. Secretaries and Administrative Assistants 30% $37,000 8. Registered Nurses 39% $75,000 9. Restaurant Cooks 57% $25,000 10. General and Operations Managers 23% $120,000 Projected Change in Race/Ethnicity of NYS Population actual Other, 11% projected Other, 16% Asian, 7% Asian, 10% Black, 16% Black, 16% White, 66% 2010 White, 57% 2040 Despite some issues with the definitions here, we can see: A growing Asian population Black population is about the same size. But note: today, immigrants make up a substantial share of the state’s black population, coming especially from the Caribbean and Africa. With many black New Yorkers leaving the state, these immigrants, and their children, are projected to keep the black population about the same share of the total as it is now. Increasing diversity of white population as well, with many immigrants from Eastern Europe. Projected Change in Race/Ethnicity of NYS Population actual 9% 91% 1980 12% projected 15% 18% 21% 25% 29% Hispanic 88% 1990 85% 2000 Non-Hispanic 82% 79% 75% 71% 2010 2020 2030 2040 Immigration is very diverse in New York State. Still, the biggest changes in race/ethnic categories is expected to come from Hispanic immigration and the birth of children to Hispanic families. The families are Dominican, Mexican, Puerto Rican, Colombian…the mix in New York State includes a wide range of Latinos. Projected Change in Race/Ethnicity of NYS Population actual 9% 91% 1980 12% projected 15% 18% 21% 25% 29% Hispanic 88% 1990 85% 2000 Non-Hispanic 82% 79% 75% 71% 2010 2020 2030 2040 If there is a big gap in educational attainment for Hispanics, as well as for African Americans, the growing Hispanic share of population should make us redouble our efforts to close these gaps. While the black share is not projected to grow, closing the education gap is critical to a sustainable social, political, and economic environment. Out-migration of African Americans is no solution. Projected Change in Race/Ethnicity of NYS Population actual 9% 91% 1980 12% projected 15% 18% 21% 25% 29% Hispanic 88% 1990 85% 2000 Non-Hispanic 82% 79% 75% 71% 2010 2020 2030 2040 Hispanics and African Americans have considerably lower wages in New York today, even after adjusting for level of educational attainment. As the non-white share of the population increases, what will it mean for our economy if we don’t close those gaps, too? Immigration There are no current state-based population projections, but here’s New York State’s history 25 20 Foreign-born Immigrant share of population 35% U.S.-born 30% 30% 25% Millions 15 23% 21% 20% 15% 10 12% 10% 5 5% 0 0% 1850 1860 1870 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2012 Immigrants make up nearly one quarter of the New York State population, rebounding after a mid-20th century decline to just 12 percent. Two estimates of immigration at the national level Census Bureau 2008 Pitkin Myers Immigration policy is one of the most contentious issues in Washington, making future policy particularly hard to predict. Other “push” and “pull” factors will also determine immigration levels—economic and social conditions in immigrant sending countries and in the United States. How will immigrants fit into the New York State economy? Three possible scenarios 1) A “Gloves Off” economy Continued large numbers of unauthorized immigrants Big areas of the labor market that are largely unregulated How will immigrants fit into the New York State economy? Three possible scenarios 1) A “Gloves Off” economy 2) An official system of a 2nd class labor force Guest workers Expansion of skilled temporary work (H1-B and related) Long pathway to citizenship for some; no pathway for many More and more categories of non-citizens, temporary workers but not citizens How will immigrants fit into the New York State economy? Three possible scenarios 1) A “Gloves Off” economy 2) An official system of a 2nd class labor force 3) A better regulated labor market Few unauthorized immigrants Legal flows that respond to labor market demands, plus family unification and refugee programs Maximizing benefits of diversity, wide talent pool, people’s eagerness to be part of the US …while keeping pressure to increase wages, invest in higher education, invest in technology to increase productivity How will immigrants fit into the New York State economy? Three possible scenarios 1) A “Gloves Off” economy 2) An official system of a 2nd class labor force 3) Immigration reform and a better regulated labor market It’s obvious which scenario is preferable, but how do we get there? Top 1 Percent Share of Income in US and NYS 40% 36% 35% 30% 25% New York State 24% 24% 20% 15% 10% United States 10% 5% 1914 1918 1922 1926 1930 1934 1938 1942 1946 1950 1954 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 0% The United States is already more polarized than it has been since just before the Great Depression of the 1930s. New York is already by many measures the most economically polarized state in the country. How much more polarization can we sustain?