1. Wages, Labor Market, and Organized Labor
The Role of Labor
Wages, Labor Market, and Organized Labor

2. Predicting Future Jobs
Make a list of…
Jobs that might disappear in 25 years
Jobs that will still be needed in 25 years
Newly created jobs that don’t exist today
Defend your job choices.
Predicting Future Jobs

3. Wages A wage is a payment received in return for work.
Equilibrium Wage is the wage at which the quantity of workers demanded equals the quantity of workers supplied; the market price for labor.
Wages

4. Derived Demand is a demand for a product or resource because of its contribution to the final product.
Workers with higher productivity tend to earn higher wages. Ex: Fast Food Chef vs. Lawyer
The lower the price of labor, the more workers businesses would demand.
Demand for Labor

5. Demand for Labor

6. The higher the wage, the higher the number of workers who are willing to work.
Supply of Labor

7. Wage Rates are determined by supply and demand, which in turn are determined by 4 key factors:
Human Capital
Working Conditions
Discrimination
Government Action
Wage Rates

8. Economists group workers into 4 groups according to the amount of human capital they have
Unskilled workers-such as house cleaners and sanitation workers
Semiskilled workers- such as construction and clerical workers
Skilled workers- such as plumbers and electricians
Professional workers- such as lawyers, doctors, and engineers
Human Capital

9. U.S. Labor Force

10. Working Conditions Window washing a skyscraper Collecting garbage
Higher wages are often paid to workers in dangerous and unpleasant occupations.
Some jobs are tougher or more unpleasant than others. Examples…
Window washing a skyscraper
Collecting garbage
Working Conditions

11. Wage discrimination may be based on race, ethnicity, gender, or other factors.
Wage differences may also result from occupational segregation. Some low paying jobs have been viewed as the “realm” of women or certain racial or ethnic groups. Ex: Nurses and Mechanics.
Equal Pay Act 1963 and the Civil Rights Act 1964.
‘Glass Ceiling’ describes unseen barriers to advancement.
Discrimination

12. Minimum wage- the lowest wage legally allowed for one hour of work
Minimum wage- the lowest wage legally allowed for one hour of work. Price floor.
Introduced in 1933 during the Great Depression
Government Action

13. Crash Course Labor markets & minimum wage
Crash Course Labor markets & minimum wage

14. Civilian labor force- people who are 16 or older who are employed or actively looking for and available to do work.
Excludes people in the military and in prison
Changes in the US labor force
More women are getting jobs
More of the labor force is becoming educated.
Today’s Market

15. Men & Women in the Work Force

16. Changing Occupations Economist group occupations into 3 sectors:
Primary sector is made up of jobs related directly to natural resources: farming, forestry, fishing, and mining.
Secondary sector is related to the production of goods, including the materials and energy needed to produce them. Ex: welders, truck drivers, and construction workers.
Tertiary sector is made up of service-related jobs in such industries as banking, insurance, retail, education and communication.
Changing Occupations

17. Employment in the U.S. by Economic Sector

18. Predicting Future Jobs
With someone next to you or by yourself, make a list of…
5 jobs that might disappear in 25 years
5 jobs that will still be needed in 25 years
5 newly created jobs that don’t exist today
Defend your job choices.
Predicting Future Jobs

19. Analyzing Wage Factors
Choose two very different jobs. Compare & contrast them based on the following attributes:
Level of human capital required
Working conditions
Discriminatory practices
Effect, if any, of government actions
Your written evaluation of the two jobs you have selected should be at least a ½ page in length.
Include a T-Chart on the back of your paper that illustrates the differences and possible similarities between the jobs you have chosen.
Analyzing Wage Factors

20. Is outsourcing a good thing or a bad thing?
Today’s labor market is global
Insourcing is the practice of foreign companies establishing operations in the U.S.
Insourcing represents 6.2% of job growth
Outsourcing is the practice of contracting with an outside company to provide goods or services.
Examples of Outsourcing jobs- Bookkeeping/Taxes, Web Programming & Web Design.
Is outsourcing a good thing or a bad thing?
Globalization & Jobs

21.
Did you know?

22. Changes in Types of Jobs
Contingent employment refers to temporary or part-time work.
Independent contractors sell their services on a contract basis.
Examples- Architect, Lawyer, Professional athletes
Hiring contingent employees and contract workers makes it easier for businesses to adjust their work force to suit production demands.
Telecommuting means performing office work in a location other than the traditional office.
Examples- Web Design, Software Engineer, Project Manager
Changes in Types of Jobs

23. In 2005, 30.6% of workers had either contingent jobs or were considered independent contractors.
Results?
Higher poverty rates
Lower pay
Greater job instability
Less access to private health insurance
More reliance on government assistance
Cause and Effect

24.
2028

25. Top 10 Future Technology That's Here Right Now
Top 10 Future Technology That's Here Right Now

26. Organized Labor in the U.S.
Labor Union is an organization of workers that seeks to improve wages, working conditions, fringe benefits, job security, and other work-related matters for its members.
A strike is a work stoppage used to convince an employer to meet union demands.
Organized Labor in the U.S.

27. Norris-LaGuardia Act outlawed the practice of hiring only workers who agreed not to join a union.
National Labor Relations Act 1935, also known as the Wagner Act, protected the rights of workers in the private sector to form unions and to use strikes.
Fair Labor Standards Act set a minimum wage, required extra pay for overtime work, and made most child labor illegal.
Unions Gain Power

28. Union Membership in the U.S.

29. Taft-Hartley Act amended Wagner Act, limiting union activities, increasing the government’s power to intervene if a strike might threaten national security.
This was a factor in the decline of union membership. This is legislation designed to limit union influence.
Right-to-Work laws made it illegal to require workers to join unions.
A closed shop is a business where an employer can hire only union members. The Taft-Hartley Act outlawed closed shops.
A union shop is a business where workers are required to join a union within a set time period after being hired. Taft-Hartley Act limited abilities of union shops.
Right-to-Work Laws

30. Right-to-Work laws prohibit agreements between employers and labor unions, to which an established union can require employees' membership, payment of union dues, or fees as a condition of employment.

31. 1) When did your strike take place? How long did the strike last?
2) Where did the strike take place?
3) Did the strike involve a union?
4) How many people were involved in the strike?
5) What job was striking?
6) Why were they striking? What did they want to change?
7) Why wouldn’t the employers give in to the striker’s demands?
8) Was there violence? If so, by whom and why did they feel violence was necessary?
9) What was the result of the strike?
10) Could something like this happen today?
Strike Project

32. Famous Strikes 1) Haymarket Square Riot 1886 2) Pullman Strike 1894
3) Homestead Strike 1892
4) Great Southwest Railroad Strike 1886
5) Great Anthracite Coal Strike 1902
6) Steel Strike 1919
7) Railroad Shop Workers Strike 1922
8) Textile Workers Strike 1934
9) United Mine Workers of America Strike 1946
10) Steel Strike 1959
11) US Postal Strike 1970
12) UPS Workers Strike 1997
13) The International Ladies’ Garment Workers’ Union strike 1909
14) Air Traffic Controllers Strike 1981
15) MLB strike
16) NBA strike 95,99,2011
17) NFL strike 2011
18) NHL strike
Famous Strikes