Wealth, Income and Employment

The Profit Formula Profit = Revenue – Expenses Profit: the money left over after a business pays all of its expenses Revenue: the money a business receives from the sale of goods and services Expenses: wages to employees, cost of supplies, taxes, payments on loans

How can a business make a profit? Keep expenses as low as possible without affecting the quality of its goods and services Keep expenses as low as possible without affecting the quality of its goods and services Needs to be run effectively Needs to be run effectively Needs to be able to expand and develop new products Needs to be able to expand and develop new products

Employment A strong business environment means that most of the people who want to work are working A strong business environment means that most of the people who want to work are working Low skill jobs = Low wage Low skill jobs = Low wage High demand/skill jobs = High wage High demand/skill jobs = High wage

Jobs and the Economy When the economy is healthy, businesses tend to employee more workers and create more jobs When the economy is healthy, businesses tend to employee more workers and create more jobs When the economy is not healthy, the number of jobs decrease When the economy is not healthy, the number of jobs decrease

Unemployment Unemployed means people are out of work and are actively looking for work Unemployed means people are out of work and are actively looking for work Economic recessions are the main cause of unemployment Economic recessions are the main cause of unemployment

Level of Income Your level of income affects your standard of living and quality of life Your level of income affects your standard of living and quality of life It also makes an impact on the community It also makes an impact on the community “People with a decent income are able to contribute money to help people in need” “People with a decent income are able to contribute money to help people in need”

Factors Affecting Level of Income Education: Education: Without education you run a greater risk of being unemployed Without education you run a greater risk of being unemployed The basic level of expected education is going up The basic level of expected education is going up Technological training and university levels are essential now Technological training and university levels are essential now

Employability Skills Employers very concerned about these Employers very concerned about these These are like general ‘life skills’ that you bring in to a job with you These are like general ‘life skills’ that you bring in to a job with you Transferable skills such as teamwork essential Transferable skills such as teamwork essential

Market Conditions There has been a major shift in Canada in the last 20 th century away from manufacturing into new areas of employment opportunities There has been a major shift in Canada in the last 20 th century away from manufacturing into new areas of employment opportunities (remember ch. 2 – globalization, advances in technology, growth of small business) (remember ch. 2 – globalization, advances in technology, growth of small business) -there are now more high paying jobs in marketing, accounting, telecommunications etc than in manufacturing -there are now more high paying jobs in marketing, accounting, telecommunications etc than in manufacturing

Employability Skills Read each section and rate each skill on a 1-10 scale of how well you think you have mastered that skill Read each section and rate each skill on a 1-10 scale of how well you think you have mastered that skill Write a journal on: Write a journal on: –Areas you are strong in –Areas you need improvement in –Ways you can practice that skill at home, work, and in society