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Today's Labor Force

Employee Tenure

Information on tenure (how long a person has worked for his or her current employer) is often used to gauge employment security. A trend of increasing tenure in the economy can be interpreted as a sign of improving job security, with the opposite being an indicator of deteriorating security.

However, job security trends are not necessarily that simple. During recessions or other periods of declining job security, the proportion of median-tenure and long-tenure workers could rise because workers with less seniority are more likely to lose their jobs than are workers with longer tenure. During periods of economic growth, the proportion of median-tenure and long-tenure workers could fall, because more job opportunities are available for new job entrants, and experienced workers have more opportunities to change employers and take better jobs. However, tenure can also rise under improving economic conditions, as fewer layoffs occur and good job matches develop between workers and employers.

As reported by the Bureau of Labor Statistics in Employee Tenure in 2004 (September 21, 2004), median tenure in January 2004 (the point at which half the workers had more tenure and half had less) was four years, the highest of the figures obtained in January 1983, 1987, 1991, and 2002, and February 1996, 1998, and 2000. (See Table 1.20.)

Between 1983 and 1998 male workers experienced a decline in median tenure from 4.1 years to 3.8 years. After holding fairly steady for several years, median tenure among men rose to 4.1 years in 2004. While the TABLE 1.9 Employment status of parents by age of youngest child and family type, 2003–04 "Table 4. Families with Own Children: Employment Status of Parents by Age of Youngest Child and Family Type, 2003–04 Annual Averages," in Employment Characteristics of Families in 2004, U.S. Department of Labor, Bureau of Labor Statistics, June 9, 2005, http://www.bls.gov/news.release/pdf/famee.pdf (accessed January 9, 2006)overall median tenure was thus back to 1983 levels, median tenure for all but the youngest age groups was significantly lower than in 1983. (See Table 1.20.) This is explained by the fact that the male workforce as a whole was older in 2004 than in 1983. This shift in the age distribution of the working population would, by itself, have raised median tenure, since tenure tends to increase with age. This age shift, however, was counterbalanced

TABLE 1.9
Employment status of parents by age of youngest child and family type, 2003–04
[Numbers in thousands]
Characteristic Number Percent distribution
2003 2004 2003 2004
Note: Own children include sons, daughters, step-children, and adopted children. Not included are nieces, nephews, grandchildren, and other related and unrelated children. Detail may not sum to total due to rounding.
*No spouse present.
SOURCE: "Table 4. Families with Own Children: Employment Status of Parents by Age of Youngest Child and Family Type, 2003–04 Annual Averages," in Employment Characteristics of Families in 2004, U.S. Department of Labor, Bureau of Labor Statistics, June 9, 2005, http://www.bls.gov/news.release/pdf/famee.pdf (accessed January 9, 2006)
With own children under 18 years
    Total 35,428 35,379 100.0 100.0
Parent(s) employed 32,002 32,013 90.3 90.5
No parent employed 3,426 3,336 9.7 9.5
Married-couple families 25,383 25,175 100.0 100.0
    Parent(s) employed 24,553 24,424 96.7 97.0
        Mother employed 16,820 16,557 66.3 65.8
            Both parents employed 15,420 15,257 60.7 60.6
            Mother employed, not father 1,400 1,300 5.5 5.2
        Father employed, not mother 7,733 7,867 30.5 31.2
    Neither parent employed 830 751 3.3 3.0
Families maintained by women* 8,069 8,161 100.0 100.0
    Mother employed 5,804 5,875 71.9 72.0
    Mother not employed 2,265 2,286 28.1 28.0
Families maintained by men* 1,975 2,043 100.0 100.0
    Father employed 1,645 1,713 83.3 83.9
    Father not employed 331 330 16.8 16.1
With own children 6 to 17 years, none younger
    Total 20,125 20,095 100.0 100.0
Parent(s) employed 18,309 18,307 91.0 91.1
No parent employed 1,814 1,788 9.0 8.9
Married-couple families 13,917 13,806 100.0 100.0
    Parent(s) employed 13,473 13,381 96.8 96.9
        Mother employed 10,241 10,089 73.4 73.1
            Both parents employed 9,323 9,269 67.0 67.1
            Mother employed, not father 890 820 6.4 5.9
        Father employed, not mother 3,261 3,292 23.4 23.8
    Neither parent employed 443 425 3.2 3.1
Families maintained by women* 5,009 5,040 100.0 100.0
    Mother employed 3,851 3,884 76.9 77.1
    Mother not employed 1,157 1,156 23.1 22.9
Families maintained by men* 1,199 1,250 100.0 100.0
    Father employed 985 1,043 82.2 83.4
    Father not employed 214 207 17.8 16.6
With own children under 6 years
    Total 15,302 15,284 100.0 100.0
Parent(s) employed 13,692 13,705 89.5 89.7
No parent employed 1,608 1,578 1.05 1.03
Married-couple families 11,466 11,369 100.0 100.0
    Parent(s) employed 11,080 11,044 96.6 97.1
        Mother employed 6,607 6,468 57.6 56.9
            Both parents employed 6,097 5,988 53.2 52.7
            Mother employed, not father 510 481 4.4 4.2
        Father employed, not mother 4,474 4,575 39.0 40.2
    Neither parent employed 385 326 3.4 2.9
Families maintained by women* 3,061 3,122 100.0 100.0
    Mother employed 1,953 1,991 63.8 63.8
    Mother not employed 1,107 1,131 36.2 36.2
Families maintained by men* 776 793 100.0 100.0
    Father employed 659 671 84.9 84.6
    Father not employed 116 122 14.9 15.4

TABLE 1.10 Employment status of the population by sex, marital status, and presence and age of own chlidren under 18, 2003–04

TABLE 1.10
Employment status of the population by sex, marital status, and presence and age of own chlidren under 18, 2003–04
[Number in thousands]
Characteristic 2003 2004
Total Men Woment Total Men Women
With own children under 18 years
Civilian noninstitutional population 64,932 28,402 36,530 64,758 28,272 36,486
    Civilian labor force 52,727 26,739 25,988 52,288 26,607 25,681
        Participation rate 81.2 94.1 71.1 80.7 94.1 70.4
    Employed 50,103 25,638 24,466 49,957 25,696 24,261
            Employment-population ratio 77.2 90.3 67.0 77.1 90.9 66.5
        Full-time workersa 42,880 24,762 18,118 42,758 24,794 17,964
        Part-time workersb 7,223 876 6,347 7,200 902 6,298
    Unemployed 2,624 1,101 1,523 2,331 911 1,420
        Unemployment rate 5.0 4.1 5.9 4.5 3.4 5.5
Married, spouse present
Civilian noninstitutional population 52,476 26,049 26,427 52,109 25,852 26,258
    Civilian labor force 42,776 24,638 18,138 42,247 24,449 17,798
        Participation rate 81.5 94.6 68.6 81.1 94.6 67.8
    Employed 41,128 23,712 17,416 40,847 23,703 17,144
            Employmet-population ratio 78.4 91.0 65.9 78.4 91.7 65.3
        Full-time workersa 35,315 22,954 12,360 35,141 22,935 2,206
        Part-time workersb 5,813 757 5,056 5,706 768 4,938
    Unemployed 1,648 926 722 1,400 747 653
        Unemployment rate 3.9 3.8 4.0 3.3 3.1 3.7
Other marital status c
Civilian noninstitutional population 12,455 2,354 10,102 12,649 2,420 10,229
    Civilian labor force 9,950 2,100 7,850 10,042 2,158 7,883
        Participation rate 79.9 89.2 77.7 79.4 89.2 77.1
    Employed 8,975 1,926 7,050 9,110 1,993 7,117
            Employment-population 72.1 81.8 69.8 72.0 82.4 69.6
        Full-time workersa 7,566 1,807 5,759 7,617 1,859 5,757
        Part-time workersb 1,411 118 1,291 1,494 134 1,360
    Unemployed 976 175 800 931 165 766
        Unemployment rate 9.8 8.3 10.2 9.3 7.6 9.7
With own children 6 to 17 years, none younger
Civilian noninstitutional population 35,943 15,653 20,290 35,874 15,597 20,277
    Civilian labor force 30,362 14,572 15,790 30,182 14,516 15,666
        Participation rate 84.5 93.1 77.8 84.1 93.1 77.3
    Employed 29,040 14,008 15,032 29,013 14,056 14,957
            Employment-population ratio 80.8 89.5 74.1 80.9 90.1 73.8
        Full-time workersa 25,116 13,558 11,557 25,069 13,597 11,473
        Part-time workersb 3,925 450 3,475 3,944 459 3,485
    Unemployed 1,322 564 758 1,170 460 709
        Unemployment rate 4.4 3.9 4.8 3.9 3.2 4.5
With own children under 6 years
Civilian noninstitutional population 28,988 12,749 16,240 28,884 12,675 16,210
    Civilian labor force 22,365 12,167 10,198 22,106 12,091 10,014
        Participation rate 77.2 95.4 62.8 76.5 95.4 61.8
    Employed 21,063 11,630 9,433 20,944 11,640 9,304
            Employment-population 72.7 91.2 58.1 72.5 91.8 57.4
        Full-time workersa 17,764 11,203 6,561 17,689 11,197 6,491
        Part-time workersb 3,299 426 2,872 3,256 443 2,813
    Unmployed 1,302 538 765 1,162 451 710
        Unemployment rate 5.8 4.4 7.5 5.3 3.7 7.1

by the decline in median tenure for men in most age groups, leaving the overall median tenure for men essentially unchanged.

According to Employee Tenure in 2004, overall median tenure among women rose somewhat between 1987 and 1996, with nearly all of the gain taking place from 1991 to 1996, then declined slightly between 1998 and 2000. Tenure rose again very slightly in 2002 to 3.4 years, and rose more markedly to 3.8 years in January 2004. The growth between 1991 and 1996 was partly due to increases in median tenure among those thirty-five to forty-four years old and those forty-five to fifty-four years old. These increases, even though small, contrasted with what was happening among men. The increase among forty-five- to fifty-four-year-old women continued through 2000, although it has declined since then. (See Table 1.20.)

TABLE 1.10 Employment status of the population by sex, marital status, and presence and age of own chlidren under 18, 2003–04 (CONTINUED) "Table 5. Employment Status of the Population by Sex, Marital Status, and Presence and Age of Own Children under 18, 2003–04 Annual Averages," in Employment Characteristics of Families in 2004, U.S. Department of Labor, Bureau of Labor Statistics, June 9, 2005, http://www.bls.gov/news.release/pdf/famee.pdf (accessed January 9, 2006)

TABLE 1.10
Employment status of the population by sex, marital status, and presence and age of own chlidren under 18, 2003–04 (CONTINUED)
[Numbers in thousands]
Characteristic 2003 2004
Total Men Women Total Men Women
aUsually work 35 hours or more a week at all jobs.
bUsually work less than 35 hours a week at all jobs.
cIncludes never-married, divorced, separated, and widowed persons.
SOURCE: "Table 5. Employment Status of the Population by Sex, Marital Status, and Presence and Age of Own Children under 18, 2003–04 Annual Averages," in Employment Characteristics of Families in 2004, U.S. Department of Labor, Bureau of Labor Statistics, June 9, 2005, http://www.bls.gov/news.release/pdf/famee.pdf (accessed January 9, 2006)
With no own children under 18 years
Civilian noninstitutional population 154,714 76,510 78,204 156,900 77,739 79,160
    Civilian labor force 92,319 50,036 42,284 93,511 50,771 42,740
       Participation rate 59.7 65.4 54.1 59.6 65.3 54.0
    Employed 86,233 46,294 39,939 87,748 47,282 40,467
           Employment-population ratio 55.7 60.5 51.1 55.9 60.8 51.1
       Full-time workersa 69,073 39,245 29,827 70,244 40,134 30,110
       Part-time workersb 17,160 7,049 10,111 17,505 7,148 10,357
    Unemployed 6,087 3,741 2,345 5,763 3,489 2,274
       Unemployment rate 6.6 7.5 5.5 6.2 6.9 5.3

In addition to trends in median tenure, the Bureau of Labor Statistics has charted the trends in the proportion of workers with relatively long tenure of ten years or more. During the years 1983 to 2000, the proportion of men who had worked for their current employer ten years or longer fell from 37.7% to 34%, while the proportion of women with such long tenure rose from 24.9% to 30%.

Table 1.21, from the report Employee Tenure in 2004, provides more detailed information on the length of time workers had been with their current employers as of January 2004. About one-quarter (23%) of workers aged sixteen and over had worked for their current employer twelve months or less. These included workers who had recently entered the workforce, as well as workers who had changed employers in the previous year. Nearly three-quarters of sixteen- to nineteen-year-old men and women had such short tenure (73.2%), as did 49.6% of the male and female workers aged twenty to twenty-four years. By comparison, among fifty-five- to sixty-four-year-old men and women, 10.4% had twelve months or less of tenure, while 26.0% had worked for their current employer twenty years or more.

Industry

Employee Tenure in 2004 also reported that in January 2004 workers in utilities had the highest median tenure (13.3 years) of the major industries identified by the BLS. Other sectors with tenure medians over ten years included the petroleum and coal products industry (11.4 years) and the federal government sector (10.4 years). Sectors that displayed increases from 2000 to 2004 included durable goods manufacturing (4.8 years in 2000, six years in 2004), electrical equipment and supplies manufacture (five years in 2000, 9.8 years in 2004), and beverage and tobacco products manufacture (5.5 years in 2000, eight years in 2004). The median length of time that workers in finance and insurance had been working for their current employers rose from 3.6 years in 2000 to 4.1 years in 2004. Similarly, the median years of tenure in the computers and electronic products sector rose from 3.9 years in 2000 to five years in 2004. In contrast, the median years of tenure for hospital workers declined from 5.1 years in 2000 to 4.7 years in 2004. (See Table 1.22.)

Additional topics

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