U.S. Labor Force The American Worker

Productivity, Skills, and Wages What happens if you’re a good worker? How can a worker make more wages? Skills and knowledge Innovations and inventions Technological changes Results in higher wages without increasing production costs or reducing profits

Productivity and Wage Businesses can pay workers higher real wages without increasing production costs

Supply, Demand and Wages What’s another word for wage? Wage is the price of labor Which is more scarce: Computer animator Manual animator Which is more productive? Which will get paid more?

Changes in Labor Force Labor force defined: Sector shifts Everyone over 16 who is employed or looking for work Sector shifts Away from Agriculture to goods Away from goods to services New workers in the market Women Teens

More Changes Working less Changes in technology increase demand for certain jobs Several career changes

Teacher’s $$ vs. Attorney’s $$ Differences in ability Differences in effort and jobs Experience Education and training High school grad median $26,000 College grad median $40,000 It’s not a matter of fairness; it’s a matter of supply and demand.

Labor Unions Definition Collective bargaining An association of workers who seek to promote their members’ interests Collective bargaining Negotiations between union leaders and managers