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Research/Evaluation Report

Understanding the Demand Side of the Low-Wage Labor Market: Final Report

About

Presents findings from a new, nationally representative survey of private-sector employers, focusing on the labor market for less-skilled workers.
"The report gathered information on employer characteristics, job requirements, wages and benefits, hiring practices, and potential for advancement. The survey focuses on employers' most recently filled jobs that require no more education than a high school degree or GED; we refer to these jobs as noncollege jobs. This group of jobs includes both entry-level jobs—those requiring minimal skills and experience—as well as "next-level" jobs—noncollege jobs demanding higher skill and experience and potentially offering higher wages and benefits" (Abstract). (Abstractor: Author)

Major Findings and Recommendations

• "About half of all recently filled noncollege jobs are with large employers (over 100 employees), nearly five out of six are in nonrural areas, and over one third are in industries like retail trade and service industries where average wages are lower" (p.iv). • "Advertising is still the most common way these jobs are filled (about half of them), and a third of this advertising is on the internet" (p.v). • "Only about one-tenth of noncollege jobs are filled using workforce intermediaries such as public or private agencies" (p.v). • "Finding workers for noncollege jobs is not universally easy for employers" (p.v). • “'Soft skills' are important factors in hiring for noncollege jobs" (p.v). • "Employers with noncollege jobs almost universally report they are willing to hire current or former welfare recipients; far fewer are willing to hire an exoffender" (p.v). • "Only a minority of noncollege jobs may be accessible to job seekers with minimal prior experience and training" (p.vi). • "The median wage paid to recently hired workers in noncollege jobs is $11" (p.vi). • "Employer characteristics associated with higher wages include larger firm size, nonrural location, for-profit status, and high union concentration. Wages in noncollege jobs vary by industry, with jobs in construction tending to pay higher than average wages and those in retail trade paying lower than average wages" (p.vi). • "Many noncollege jobs are in firms that provide benefits such as health insurance, pensions and paid leave, but not all the workers in these jobs are eligible for these benefits" (p.vii). • "Most noncollege jobs have regular day or evening shift work, but 15 percent require night shift or rotating shift work" (p.vii). • "A substantial proportion of noncollege jobs offer specific training" (p.vii). • "The majority of noncollege jobs offer an excellent or good chance of promotion, according to employers" (p.vii). • "Higher-skilled jobs are more likely to be in large firms and more likely to be filled through employment agencies and advertisements as opposed to unsolicited applications and walk-ins" (p.viii). (Abstractor: Author)

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  • Last Updated:
  • Created:
  • Resource Publication Date: 2008
  • Author(s): Acs, Gregory; Loprest, Pamela
  • Organizational Author(s): Urban Institute
  • Funding Source: U.S. Department of Health and Human Services, Ford Foundation
  • Resource Availability: Publicly available
  • Posted by: Wesley Peterson
  • Posted in: Workforce System Strategies

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