Economists define the labor force as nonmilitary workers over 16 who are employed or unemployed. People who are not looking for work, such as students, full-time parents, and retirees, are not considered part of the labor force. One trend in the U.S. economy is the shift from manufacturing to services. Production of services is increasing faster than the production of goods––especially in computer-related fields.

     Another important trend is the increasing numbers of women in the workplace. Changing social roles have encouraged many women to gain education and employment skills.

     A third trend is the rise of contingent employment, or temporary work. Firms use contingent employment to gain flexibility and save money. It is easier to discharge temporary workers than permanent employees, so firms can quickly adjust the number of workers to increase or decrease output.

     American workers are paid well compared to people in some countries. However, the average earnings of college graduates has increased, while the average earnings of those without college degrees has decreased by a large amount. One reason for this is that competition from foreign companies has decreased the demand for low-skilled workers.