The Labor Force

Civilian Labor Force Total number of people 16 years and older who are either employed or are actively seeking employment.

Who is excluded from civilian labor force?? Individuals not able to work (prison, mental institutions, disabled) Armed forces Those not looking for a paying job (full-time students, homemakers)

Blue Collar Workers Craft workers; manufacturing; non-farm laborers

White Collar Workers Office workers; sales people; professionals (doctors, lawyers, engineers)

Pink Collar Workers Traditionally, jobs held by women In recent years, more of these jobs are opening to men as well Ex - teachers, florists, hairstylists, nurses

Skilled v. Unskilled Workers Skilled – one who has learned a trade or craft through either vocational school or as an apprentice Unskilled – those whose jobs require no specialized training There has been a trend to having semi-skilled workers, whose jobs require training in modern technology

Unemployment Rate Those who are without jobs but are actively looking for employment GOAL – keep the economy at full employment rate. Best is to have unemployment under 6.5%

Ways to unemployment harms society Waste of human resource Reduces purchasing power/decrease in sales Increases government dependence Takes away from government income Reduce standard of living Disrupts families Take away feeling of self-respect

Types of unemployment Structural – caused due to technological advances (machine replaces man) Seasonal – caused by changes in the seasons or weather (construction, baseball, Christmas) Frictional – temporary unemployment b/c of firings, layoffs, search for new job, retraining Cyclical – associated with the business cycle…high in recession & low in expansion