Final answer:
Globalization, technological advancements, service industry growth, competition from foreign producers, and new HRM regulations are key factors contributing to economic changes, creating higher demand for high-skilled labor and altering workforce characteristics.
Step-by-step explanation:
The factors contributing to the increased globalization of the economy include technological advancements, the transition from manufacturing to service industries, and the rise in competition from foreign producers. This increased globalization has led to higher demand for high-skilled labor, as advanced information and communication technologies have made workers more productive, particularly those in high-skilled positions like business managers and consultants. Moreover, new tech has fostered economic interactions globally, allowing high-skilled workers to market their services internationally. Concurrently, lower-skilled workers now face tougher competition due to a larger global supply of workers with similar skills.
Additional factors affecting the economy and workforce include the decline in unionization, due to improved workplace protection laws, and an increase in litigation and regulation related to Human Resources Management (HRM), which forces companies to adapt their HRM practices. Lastly, the changing demographics and dynamics of the workforce, with more diverse and inclusive needs, also create new challenges and opportunities for HRM.