CHANGING LABOR MARKET CONDITIONS AND FORMER WELFARE RECIPIENTS

The slowing economy has brought about many changes in Missouri's labor market conditions. In general, the majority of job losses have been realized in the manufacturing and business services industries. Other service industries and retail trade have not yet seen significant reductions, but growth is slowing in these industries.

Also generally speaking, manufacturing industries are not major employers of welfare recipients and other low-skilled workers, but other service industries and retail trade firms have high concentrations of these workers. Continued weakness in the economy will possibly lead to two results: a continued slowdown in service-employment growth, and the increasing selectiveness of employers who are hiring. These conditions will likely translate to fewer job opportunities for low-skilled workers.

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