Labor statistics are compiled by a variety of sources, but most analysts rely on information from the Bureau of Labor Statistics for raw data. From this information, analysis can be conducted on the composition of the American workforce and changes that might be taking place with regard to who is working and how much remuneration they are receiving. By analyzing this information, decisions can be made regarding interest rates (as might be done by the Federal Reserve), investment decisions (as might be undertaken by institutional investors), and wages (as might be performed by business and industry). This research examines labor rates with regard to the period 1989 to 1999 (or 1998 when 1999 information is not available) and considers the reasons for particular trends.
At the heart of any labor analysis is the size of the entire civilian labor force (Fullerton, 1997, p. 24). This figure indicates the number of people who might be eligible, willing and able to work at any point in time; changes in this figure can be the result of changes in population trends, or changes in the demographics of the nation. This is not a measure of employment, but merely an indication of the number of people who are likely to be seeking employment at a particular time. The following chart illustrates the civilian labor force from 1989 through 1999 (as available) on a monthly basis ("Table A-1," 1999, p.1). As illustrated in the chart, employment has risen steadily from 1989 to the present time with some drops in 1990 and 1991 as well as 1995. These declines were recovered after only a few months, however.
At the same time that the civilian labor force was expanding, the unemployment rate was declining, as illustrated in the following chart ("Table A-5," 1999, p.1). Unemployment figures measure the percentage of the workforce that is employed, not the percentage of all Americans who could be employed and are not at any point in time. The incre...