SIC 8811
PRIVATE HOUSEHOLDS



This industry consists of private households that employ workers on or about the premises who serve in occupations usually considered as domestic service. This classification includes baby-sitting; domestic service; private estates; noncommercial farmhouses; private households employing cooks, maids, chauffeurs, and gardeners; personal affairs management; and noncommercial residential farms.

NAICS Code(s)

814110 (Private Households)

Industry Snapshot

This industry, unlike most others, is comprised of individuals, not companies. More than half a million households paid employers' taxes on private household workers and more than 802,000 household workers were employed in the United States in 1996. General house workers accounted for about 63 percent of available jobs; 34 percent of this workforce were engaged in child care. Historically, demand for help in this industry has been greater than the supply of workers. The need for household workers increased during the latter part of the twentieth century as more women with children entered the workforce and as an aging population often required private attendants or companions. As the baby boomer generation ages, employment opportunities for personal attendants will continue to rise. In 1995, 40 percent of all persons employed in private households were involved in childcare and 4 percent were housekeepers, or butlers.

Organization and Structure

Generally, the organization of this industry can be defined by a simple employer and employee relationship, with one or more employers per household worker. In large households with sizable staff, a butler or head housekeeper manages the other workers. Some private household employees contract with placement agencies that act as a partial employer, often by offering benefits to the workers and acting as an intermediary between employer and employee.

Traditionally most U.S. domestics have been "general house workers" responsible for duties such as dusting; sweeping and vacuuming; and cleaning fixtures, ovens, and bathrooms. Some general house workers also take on such duties as cooking and childcare, although these are usually considered specialty areas. Another category of household workers includes those specifically involved in childcare. Workers employed on an hourly and casual basis are usually referred to as baby-sitters; those employed on a regular, ongoing basis who are in charge of infants are usually considered nannies; and workers in charge of older children are tutors or governesses. Household workers who assist the elderly or disabled are referred to as companions or personal attendants. Such employees generally prepare meals and do light housework, but, depending on the person's needs, may also help in bathing and dressing. Most household employees are also involved in the personal aspects of the employer's life. This is mainly true with nannies and personal attendants. Oftentimes, it is the household employee who is the stable figure in the lives of those being taken care of.

Large households employing workers may include a housekeeper, butler, cook, caretaker, and/or a launderer. Housekeepers and butlers are responsible for hiring and supervising household staff, and they normally do light housework. Butlers also answer phones, deliver messages, serve food and drinks, and act as personal attendants. Cooks are responsible for preparing and serving meals, ordering food supplies, and keeping the kitchen clean. Caretakers carry out heavy housework and maintenance, including light carpentry and plumbing.

Background and Development

Domestic workers have existed for centuries; early on, however, service often took the form of slavery or indentured servitude. In 1870, there were approximately 960,000 private household workers in the United States. Between 1870 and 1910, demand for such work increased rapidly because industrialization sparked a proliferation of middle-and upper-class families in urban areas. At this time, demand was easily met by the vast number of immigrants in the country. Yet, with this advance in industrialization, the status of household work declined. The gap between factory and domestic workers was widened by the emergence of benefits and legislation to protect factory workers.

For a short period, roughly between 1910 and 1920, the number of domestic workers in the United States declined. This drop was mainly due to the advent of compulsory education of children and the introduction of child labor laws. Between 1920 and 1940, the number of domestics working in the United States jumped from 1.36 million to a peak of 2.28 million. Domestic help was changing from a mostly live-in, full-time profession to one in which servants lived on their own and even worked on a part-time basis. This was spurred on, in part, because families living in small homes or apartments still hired household help. After World War I, this occupation drew immigrants with minimal language skills and African-Americans moving north, for whom domestic service was one of the few occupations available. Since 1940, the number of private household workers in the United States has decreased. Despite having long dominated the industry, women began to leave these jobs when outside opportunities increased and they were able to work in better occupations.

In the early 1990s, the treatment of household help, particularly nannies, was publicized as a result of lawsuits against employers involving sexual harassment and physical violence. An article in the Wall Street Journal claimed that "nannies are among the most exploited workers in the country." Stories of unfair wage practices, long hours, and physical abuse emerged in the media. However, nannies and other household workers have had few legal rights in fighting harsh working conditions. In 1993, most states did not place a limit on the number of consecutive hours or days a household worker could work. Moreover, sexual harassment of household workers has not been illegal in most states. In New York, human rights laws have prohibited sexual harassment and discrimination of employees, but has specifically excluded domestic workers.

In 1993, employers' tax obligations were highlighted when it was discovered that one of President Clinton's nominations for attorney general had hired an illegal alien and had not fully complied in paying social security taxes for an employee. As a result, President Clinton proposed simplifying the tax laws for employers to make it clearer if they are required to pay social security tax on wages. Unless a private household worker is an independent contractor—which is rarely the case—employers are required to pay social security tax on any employee earning more than $50 per quarter to the federal government and any additional taxes required by their states.

Current Conditions

Upon entering the 1990s, this industry continued to have a short supply of workers due primarily to the working conditions, low status, and lack of health and fringe benefits (although some placement agencies offered benefits). Also in the early 1990s, changes in immigration laws made work permits more difficult to obtain. The trend in the 1990s has been away from private household help for childcare and toward the use of nurseries, which are often sponsored by employers. Other trends for childcare have included more use of day care facilities, which are operated by private companies and individuals working out of their homes.

While the actual number of workers declined by 6,000 workers from 1992 to 1998, opportunities for employment in this industry sector was expected to remain robust through 2006. In essence, more lucrative employment was available due to a robust economy in which employers competed for a scarce labor pool. With an increasing number of women joining the workforce, demand for household help, child care, and (with an increasing population of senior citizens), elder care. In lieu of private household employers, the trend at the end of the 1990s was towards increasing dependence on domestic cleaning firms, child care establishments, and temporary help firms. $7,500 was the average wage for housekeepers and butlers.

Workforce

In the latter half of the 1990s, there were roughly 802,000 private household workers employed in the United States. More than half were general house workers, about 40 percent were child care workers, and about 4 percent were housekeepers, butlers, cooks, and launderers. Nearly two-thirds of household employees worked part-time (35 hours or less per week).

Experienced and highly recommended workers employed by wealthy families in major metropolitan areas may earn $800 to $1,200 a week. Private household workers who live with their employers may be given room and board, medical benefits, a car, vacation days, and education benefits. However, most private household workers receive very limited or no benefits.

Earnings of private household workers varied depending on household, staff size, geographic location, and experience. Generally, full-time live-in housekeepers, cooks, butlers, nannies, and governesses earned the highest remuneration. Experienced, well-referenced domestic workers serving wealthy families in large metropolitan areas were the highest paid household workers. For the most part, however, private household workers were employed part time and did not receive any benefits. Some workers lived with their employers and received room, board, and a package of benefits competitive with U.S. industry, but, in some states employers could deduct a minimal amount for room and board, making the salaries of some household workers lower than the minimum wage. The Bureau of Labor reported that, in 1996, median annual earnings for full-time private household workers were $11,600 for cleaners and servants, $11,100 for cooks, child care workers received $10,500, and

America and the World

In 1999, the Bureau of Labor Statistics indicated that a majority of household workers were women (62 percent). African-Americans composed 13 percent of all industry workers, while 9 percent were Latino.

According to the Center for Migration Studies, at least 10 percent of the United States' 3 million illegal immigrants worked in childcare in 1993, with roughly another 10 percent working in other private household occupations. Legally, over 10,000 Western Europeans work in the United States through cultural exchange programs.

Great Britain, like the United States, has reported shortages of child care help. In a 1990 study, 48 percent of British women who were unemployed said they had to stay at home to raise their children because they were unable to find help. Because of this shortage, salaries for nannies in Great Britain have increased significantly. In other European countries, childcare help is largely covered by the state, reducing the need for such workers. A study by the European Economic Commission showed that Denmark, France, Belgium, and Italy offered the most generous state assistance for childcare. In the Scandinavian countries, childcare is typically provided by employers.

Further Reading

Atkins, Andrea. "The Affordable Nanny." Better Homes and Gardens, January 1997.

"Clinton Wants to Amend the 'Nanny' Tax Law." Wall Street Journal, 26 April 1993.

Lipman, Joanne. "The Nanny Trap: Dark Side of Child Care Is How Poorly Workers Are Sometimes Treated." Wall Street Journal, 14 April 1993.

U.S. Bureau of Labor Statistics. "Private Household Workers." Occupational Outlook Handbook . Washington: GPO, 1998. Available from http://www.bls.gov/oco/ocos175.htm/ .



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