1. Sections 1: Labor Market Trends And Section 2: Labor and Wages.

2.  Labor Force – all NON-MILITARY people who are employed or unemployed  Employed People ◦ Worked at least one hour for pay in the past week ◦ Worked 15 hours or more without pay in a family business ◦ Held jobs but didn’t work  Illness  Vacation  Labor disputes  Bad weather

3.  International Competition ◦ Outsourcing  Contracting with another company  To do a specific job  Using the other company’s workers instead of their own workers ◦ Offshoring  Moving the entire company or parts of the company to another country  Hire their people for less money

4.  Labor and Education ◦ College and Post-high school training  It DOES matter  Learning Effect  You learn specific skills that employers look for  Screening Effect  You show that you can finish what you start

5.  Derived Demand ◦ Labor is DERIVED from the need to create a different good or service  Productivity of Labor ◦ The Quantity of a product made by one laborer

6.  Workers SUPPLY labor  Employers DEMAND labor  Equilibrium Wage ◦ Workers are happy with the pay ◦ Employers are happy with the pay of labor for labor

7.  Unskilled Labor ◦ No specialized skills ◦ HUGE supply of capable workers ◦ Low hourly wages  Semi-skilled Labor ◦ Minimal specialized skills ◦ Large supply of workers ◦ Middle hourly wages

8.  Skilled Labor ◦ Requires special skills and training ◦ Often make hourly wages ◦ Wages may be very high  Professional Labor ◦ Requires advanced skills and education ◦ White collar workers ◦ Make a salary

9.  Labor Union ◦ Organization of workers that tries to improve  Wages  Benefits  Working conditions ◦ Methods of reaching a labor agreement  Union Actions  Strikes  Labor slowdown  Outside help  Mediation  Arbitration