Labor – Chapter 9 Unit 3 Sections 1,2 & 3

Labor Market Trends Section 1

Tracking the Labor Force  There are ways to determine our current labor force.  Labor force is all nonmilitary people who are employed or unemployed.

Employment  Employed = you’re 16, and one of these:  Worked for at least one hour of pay in last week  Worked 15 or more hours without pay in “family business”  Had job, could not work because of illness, labor dispute, bad weather, or vacation

Unemployment  To be considered unemployed:  Must have work lined up for the future  Must be actively searching for a new job  Non-examples: full time students, stay-at-home parents, retirees

What about discouraged workers?  People who once sought work, but have given up looking for a job, are not counted as employed or unemployed  Example:  U.S. unemployment rate is 7.3%  Real U.S. rate of people who are unemployed or underemployed is 13.8% - 22 million people  Rate for recent college grads? 44-53%

Occupational Trends  The economy is always changing over long periods of time: U.S. economy over different periods  1800: Farming – cotton, corn, tobacco, etc.  1900: Manufacturing – Ford automobiles, assembly line, oil, etc.  2000: Hi-technology – computers, smartphones, Google, internet, etc.  2100: ?

Fewer Goods, More Services  Currently, a huge shift from goods production to service based economy – shows a mature economy  Less goods produced – clothing, technology, etc.  More services – marketing, web design, healthcare, etc.  Creative Destruction  Is this a problem? Is this a problem?

International Competition  Jobs that formerly had great wages and great benefits (manufacturing), are now seen as unskilled jobs and shipped out of the US for lower costs.  Capitalism: A Love Story  Demand for unskilled workers ↓  Demand for skilled workers ↑  What can you infer with this information?????

The Changing Labor Force – It’s the EDUCATION, stupid!  College – To get jobs, you must have human capital  Education, training, and experience  Two reasons why college is important  Learning Effect - The more education, the higher the pay.  Screening Effect – The college degree alone proves that you are a hard worker and are intelligent.

Temporary Workers  Another major trend in U.S. jobs market: Temporary Workers  Flexible work allows a firm to adjust easily  Easier to terminate than permanent employees  Workers are paid less  Some workers prefer it!!!!!!*

Labor and Wages Section 2

Labor Demand  In labor market, workers are paid for value of what they produce.  Companies want (or have demand for) LABOR  If you are a cook:  $20 meal - $15 wage = $5 profit for employer

Labor Supply  You are the supply, the higher the way, the larger pool of applicants for a job.

Equilibrium Wage  Wage rate that produces neither an excess supply of workers, nor an excess demand for workers.  No shortage, no surplus

Wages and Skill Level  I need 4 groups.  Each group will be given a term involving skill level in work force.  You will need to act out the level of skill based on book definition. You have 7 minutes and 38 seconds to come up with a skit demonstrating that skill level.

Wages and Skill level  Group 1 – Unskilled Labor  Group 2 - Semi-Skilled Labor  Group 3 – Skilled Labor  Group 4 – Professional Labor

Wage Discrimination  Laws – The Equal Pay Act of 1963 – Federal law requiring that male and female workers receive equal pay for equal work.  Civil Rights Act of 1964 – Prohibited discrimination of basis of race, sex, color, religion, or nationality.

Women at Work  Women make up a much larger percentage of the labor force due to:  Encouragement to attain higher education  General shift from a goods economy, to a services economy.

Women at Work/ Pay Levels  Women earned less than men in 99% of all occupations  The average woman earns 77 cents to the dollar, while African American women earn 64 cents, and Hispanic women earn 52 cents.  Women account for 46% of labor force  Women business owners employ 35% than all the Fortune 500 companies combined.

Why?  Why do you think that there is such a disparity(inequality/difference) in female treatment in the labor force?

Pay Levels for Women 1.“Women’s Work” – Historically denied entrance to high paying careers 2.Human Capital – Historically have had less education 3.Women’s Career Paths – Some employers still assume that female employees are not interested in career advancement.

Pay for Minorities  Historically, whites have had more easier access to higher education.  Non-discrimination laws are designed to help (affirmative action), but some argue it has actually hurt minorities.  Supreme Court Justice on Affirmative Action Supreme Court Justice on Affirmative Action  Supreme Court Justice on Racism Supreme Court Justice on Racism

Organized Labor/Unions Section 3

John Henry  What does this story represent?  What elements from past lessons does this suggest?  How does it apply to the current labor topic?

Unions  Organization of Workers to demand better pay, benefits, and working conditions.

Strike  An organized work stoppage intended to force an employer to address worker demands

Right-to-Work  Laws that strip unions of their collective bargaining  Strikes are illegal  Texas is a right-to-work state