Labor Market Decline The decline of the labor market is easy to misinterpret. There are many reasons for that. During the 1970s, large numbers of women and young adults born during the baby boom entered into the work force. That resulted in too many workers for the jobs available and depressed wages. The decline also has something to do with the explosive growth in world trade since 1960. As manufacturing technologies have become more mobile, production jobs have moved from the U.S. to countries where wages are low. In addition, technology itself has helped to cause the shifts in the job market. For example, fewer American workers are needed to make steel today than in the past, because new machines have made many of their tasks unnecessary. Finally, the high rate of unemployment caused by these factors had tended to drive wages down further.
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