1. The Labor Force

2. Essential Standards The student will describe how the earnings of workers are determined in the workplace. The student will identify skills which are required to be successful in the workplace. The student will explain the significance of investment in education, training and skill development.

3. The Labor Force The labor force is made up of all people over the age of 16 who are… Working… Or actively looking for work. As you begin looking for work, there are SEVEN things that need to think about: 1. Wages. …jobs that require advanced skills pay usually pay high wages… …jobs that have few skill requirements usually pay low wages.

4. In terms of the labor force, wages and skill levels are... A.) directly related. B.) inversely related. C.) not related.

5. Other Considerations… 2. Skills—Do you need… Special experience? A certain degree? A unique ability? 3. Working conditions—hot, cold, dangerous, etc. If you can handle this, your pay will… RISE. 4. Location—THINK ABOUT THE COMMUTE! 5. Intrinsic rewards—are you looking for something other than money? 6.Market trends—VCR repair, for example, is probably not a good line of work to go into. 7. Fringe benefits—does your career offer… Health insurance? A good retirement package? Enough vacation time?

6. In terms of employment considerations, which of the following would be considered an intrinsic reward? A.) the large amounts of vacation time provided to educators. B.) the short commute of somebody who lives in a city center. C.) the free teeth cleanings offered to employees of a dental clinic. D.) the satisfaction of a politician has fought to pass an important bill.

7. Wages & Skill Levels 1. Unskilled labor— You can begin with NO TRAINING— You are paid an hourly wage. 2. Semi-skilled labor— May require a LITTLE training— You are paid an hourly wage. 3. Skilled— You need a SPECIALIZED ability— You are paid an hourly wage, but that wage could be EXTREMELY HIGH. 4. Professional— You need AT LEAST a four-year college degree… You are paid a SALARY.

8. Under which category of employment would an accountant probably fall? A.) unskilled. B.) semi-skilled. C.) skilled. D.) professional.

9. Under which category of employment would a toll- booth operator probably fall? A.) unskilled. B.) semi-skilled. C.) skilled. D.) professional.

10. Taking into account current labor market trends, which skill-set do you think provides for the LOWEST levels of unemployment? A.) construction. B.) nursing. C.) art and design. D.) textile manufacturing.

11. Changes in the US Work Force: Outsourcing ► From the 1800’s to the 1970’s, the US economy gradually became more INDUSTRIALIZED—and based on manufacturing. ► Starting in the 1980’s, US manufacturing jobs began to disappear…WHERE? ► To India, China, Mexico, etc., in a process called OUTSOURCING— ► When companies ship low-skilled jobs overseas. Why do they do this? ► Because foreign labor is CHEAPER.

12. More Changes in the US Workforce Every economic issue has WINNERS and LOSERS. When the American economy changed, the LOSERS were workers with undeveloped skill sets… And low levels of education. And the WINNERS were highly skilled/highly educated workers. Please remember: In this economy, a high school diploma BY ITSELF is little more than a ticket to poverty. YOU MUST OBTAIN a more advanced education— And I’m NOT talking about Westwood College.

13. High School or College? ► High school graduates make approximately $11,800/year less than those with a 4-year bachelor’s degree… ► High school grads divorce at twice the rate of college graduates. ► High school grads are almost twice as likely to be obese than college grads… ► They are more likely to file for bankruptcy. ► Their children are less likely to be economically successful. ► They’re more likely to smoke... ► They’re more likely to contract an STD… ► They get heart disease at twice the rate of college grads… ► They are far less likely to have health insurance… ► And they die, on average, five years earlier than college grads.

14. Education & the Work Force Education is expensive… Education is expensive… But workers are compensated with higher wages. But workers are compensated with higher wages. The Learning Effect—education increases productivity & results in higher wages… The Learning Effect—education increases productivity & results in higher wages… The Screening Effect—completion of college indicates to employers that the applicant is intelligent & hard-working. The Screening Effect—completion of college indicates to employers that the applicant is intelligent & hard-working.

15. Wage Discrimination for Women Although female workers are now beginning to OVERTAKE their male counterparts (think about the classes you’re in right now…)— But in the past, women earned less than men for several reasons: 1. “Women’s Work”—women were often pushed into lower wage jobs like nursing & clerical work… 2. Human Capital—women have had less education, training & experience than men—this has made them less valuable… 3. Career Paths—employers assume that women are not interested in career advancement. These issues combined to create the… Glass Ceiling—an unofficial barrier that prevented women from rising to the highest ranks of the work force.