Why is it important to develop your human capital?
Changes in the labor market are having an effect on the jobs and wages available to American workers. As the labor market evolves, it becomes more important than ever for workers to develop their human capital.
What trends are shaping today’s labor market? An influx of women and minorities has changed the labor force in recent decades. In addition, job growth has shifted from manufacturing to the service sector, and knowledge workers have become increasingly important. Globalization is also having an impact as foreign trade and competition have increased both the offshoring and inshoring of jobs.
What determines how much workers earn? Wage rates reflect various factors in the labor market. Wages primarily depend on the skill level of workers and the value of what they produce. Like the price of goods and services, wages are set by supply and demand. Wage rates move toward equilibrium as the demand for workers with the skills needed for a given job and the supply of such workers come into balance.
What can you do to increase your human capital? The first step to increasing your human capital is to identify your abilities, interests, and goals. After that, get the education you will need to meet any licensing or certification requirements. Other key steps include gaining work experience, holding yourself to high performance standards, and building a network of friends and colleagues.
What role do unions play in the labor market? Historically, unions have helped workers defend their rights and improve their pay and working conditions. Although union membership has declined in recent decades,