Role of Labor Ms. Biba S. Kavass

Objectives Define the labor force Examine how economic trends affect labor Explore impact of educational attainment on workforce. Analyze labor and productivity in the United States Economics – Biba S. Kavass

Tracking the Labor Force Labor Force - All nonmilitary people who are employed or unemployed Employed – 16 years or older who have worked for at least one hour and been paid in the last week or who have worked at least 15 hours in the past week in a family business without pay Unemployed – those without a job but who are looking for a job Tracked by the Bureau of Labor Statistics – U.S. Department of Labor Economics – Biba S. Kavass

Economics – Biba S. Kavass

Changes in Employment Economics – Biba S. Kavass

Effects of International Competition Outsourcing - companies contract with another company to do a specific job that would otherwise be done by a company’s own workers Offshoring - The movement of some of a company’s operations, or resources of production, to another country Demand for Highly Skilled Workers Immigration Economics – Biba S. Kavass

Human Capital Knowledge and skills that enable workers to be productive Amount of Human Capital Unskilled Workers – house cleaners Semiskilled Workers – construction workers Skilled Workers - electricians Professional Workers - doctors Economics – Biba S. Kavass

Which Level of Human Capital Are They? ___ Plumber ___ Teacher ___ Clerical Staff ___ Sanitation Worker ___ Retail Sales Clerk ___ Lawyer ___ Nurse Economics – Biba S. Kavass

Why does education change your human capital? Economics – Biba S. Kavass

Economics – Biba S. Kavass

Estimated Average Lifetime Earnings by Education Level Economics – Biba S. Kavass

Check for Understanding How do you think the change in jobs may be influencing the changes in the labor force? How do economists explain the connection between education and wages? How does this affect your view of what you will need for your future job? Economics – Biba S. Kavass

Factors Affecting Wages Economics – Biba S. Kavass

Why might the new restaurant offer higher wages? How do the existing restaurants keep their cooks? What other than higher wages might they offer to attract employees? Economics – Biba S. Kavass

How is technology changing productivity of labor? What is the difference between productivity and efficiency? Economics – Biba S. Kavass

Reading: The Productivity Puzzle Directions: Read the article “The Productivity Puzzle” Answer the following questions: Define productivity. How is productivity related to a country’s standard of living? What is the difference between physical capital and human capital? How does physical capital contribute to the productivity slowdown? How does human capital contribute to the productivity slowdown? Why is technological change the largest contributor to productivity? What are 2 ways the government can boost productivity?

Labor Unions An organization of workers that tries to improve working conditions, wages, and benefits for its members. Key goal is to get fair wages and wage increases for their members Economics – Biba S. Kavass

Labor Unions Why don’t employers like unions? Economics – Biba S. Kavass

Labor and Management Collective Bargaining - process in which the union and company management meet to negotiate a new labor contract Strike – leaving the job to protest labor issues Arbitration – settlement technique in which a neutral third party listens to both sides and then imposes a decision that is legally binding for both the company and the union Mediation - a settlement technique in which a neutral person, the mediator, meets with each side to try to find a solution that both sides will accept – NOT legally binding Economics – Biba S. Kavass

Right to Strike? Divide the list into those who, in your opinion, should have the right to strike and those who should not. Bus Drivers Store Clerks Doctors Nurses Actors Teachers Factory Workers Librarians Police Officers Fire Fighters Truck Drivers Cafeteria Workers Economics – Biba S. Kavass

Minimum Wage Economics – Biba S. Kavass

According to the Economic Policy Institute’s State of Working America, a stunning 35 million Americans – 26 percent of the USA workforce – earn less than $10.55 an hour Economics – Biba S. Kavass

Economics – Biba S. Kavass

Wage Discrimination Race Ethnicity Gender Age Glass Ceiling Economics – Biba S. Kavass

Check for Understanding How does supply and demand determine wages in an industry? Why did unions come into being? What is their main purpose? What is the difference between arbitration and mediation? What affect does a raise in minimum wage have on businesses? Why does wage discrimination still exist in our country? Economics – Biba S. Kavass