LABOR CHAPTER 9 NOTES

LABOR MARKET TRENDS What is the fastest growing occupation? Computer-related occupations (# doubled from ) Expected to grow about 70% per year until 2018 Why? Social Media, etc. Health Care Field = Expected to grow 50% until 2018

LABOR FORCE DEFINED AS: All non-military people who are employed or unemployed Employed = Must be 16 years old & meet one requirement:  Work at least one hour for pay within the last week  Work 15 or more hours without pay in a family business  Held a job but did not work due to illness, vacation, or a labor dispute

UNEMPLOYMENT UNEMPLOYED = Temporarily without work or… Not working but have looked for a job within the last 4 weeks Current US unemployment rate = 8.2% Current MI unemployment rate = 8.8%

LABOR & WAGES What determines wages for a particular job? Supply & Demand Wages are high in professions where supply is low and demand is high (Doctors) Wages are low in professions where supply is high and demand is low

MINIMUM WAGE 1938 – Fair Labor Standards Act was passed Created Minimum Wage Supporters argue minimum wage helps the poorest Americans earn enough to support themselves Economic Theory – When minimum wage goes up, the quantity of labor demanded will DECREASE Why? Individuals will earn more, but companies will most likely hire fewer workers

WAGE & SKILL LEVEL JOBS ARE OFTEN CATEGORIZED INTO FOUR SKILL LEVELS 1) UNSKILLED LABOR  No specialized skill, education or training; hourly wage; (dishwashers, janitors, factory & farm workers) 2) SEMI-SKILLED LABOR  Minimal specialized skills and education such as operation of certain equipment; hourly wage; (lifeguards, short-order cooks, construction workers) 3) SKILLED LABOR  Specialized abilities and training such as operating complicated equipment; hourly wage; (mechanics, bank tellers, plumbers, firefighters, chefs, carpenters) 4) PROFESSIONAL LABOR  Advanced skills and education; “white-collar” workers; salary; (teachers, bankers, doctors, etc.

Wage Discrimination People with the same job, receive unequal pay = Wage Discrimination Civil Rights Act of 1964 = Prohibits jobs discrimination and created the EEOC EEOC=Equal Employment Opportunity Commission EEOC handles complaints regarding discrimination in the workplace based on race, sex, color, religion, and/or nationality

Women Advancement Great progress has been made in creating job opportunities for women However, advancement is still difficult Top 500 U.S. companies = Only 12 have a female CEO GLASS CEILING = Unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by men

LABOR UNIONS Organization of workers that try to improve working conditions, wages, and benefits Unions were created in response to:  Dangerous working conditions and long hours of factory jobs in the 1800’s (Industrial Revolution) Unions began to gain legal rights in the 1930’s due to the Great Depression  Minimum Wage Created  Banned Child Labor  Required overtime pay Approx. 13% of US workers belong to Labor Unions Largest Union Today = NEA (National Education Association)

COLLECTIVE BARGAINING Process in which union and company representatives meet to negotiate a new labor contract Issues usually involved in Collective Bargaining o Wages and Benefits o Working Conditions o Job Security

Strikes and Settlements Strikes = Union’s “ultimate weapon” Ways to avoid strikes Mediation = Neutral mediator meets with each side to try to find a solution that both sides will accept (neither side is required to accept a mediator’s decision or advice) Arbitration = Neutral 3 rd party reviews the case and IMPOSES a decision that is legally binding Arbitration is common in professional sports