Today’s Schedule – 10/21 Finish Reviewing Franchise Reports Discussion: Minimum Wage, a Living Wage? PPT: Labor Market Trends BLS Research HW: – Study for Unit 3 Test – CHECK GRADES ON SPA: FRIDAY IS LAST DAY FOR MISSING WORK

Labor Force All people who are employed or unemployed – Not included: Full time students, retirees, stay at home parents Unemployed: Out of work but looking for work Data is collected by the Bureau of Labor Statistics (“BLS”) – Collected monthly

Occupational Trends Started as a nation of farmers North development of the Industrial Revolution Electronics boom: Radios, TVs Information Age: PCs

Effects of Information Age Move away from manufacturing jobs to service jobs – Jobs sent overseas Less demand for unskilled workers – Must get more education Demand for skilled labor increasing – Wages increasing

The New Labor Force Then White Male High school graduate 40 hours a week Retire at 65 Now 4-5 different jobs in a lifetime Early retirement possible

Importance of Education Increasingly important to have college degree Still small supply of educated workers Higher wages to those who are educated to compensate for costs in obtaining education and higher productivity: learning effect Idea that college educated employees are good because of innate skills: screening effect

Women in the Workforce Increased presence in the work force More importance on education Less manufacturing – Strength not as necessary

Temporary Workers Increasing use of – Flexible work arrangements – Easy discharge – Paid less – Fewer benefits

Wages and Benefits Wages of college graduate has increased Wages of those without a college degree has decreased Foreign competition has kept some wages from increasing Benefits included in wages – Healthcare, retirement packages, stock options