1. Chapter 13 Employment © 2001 South-Western College Publishing

2. 2 Size and Composition of the Labor Force 4 Total labor force –all persons 16 years old or older, except persons in prisons or mental institutions

3. 3 Size and Composition of the Labor Force (cont.) 4 Civilian labor force –all persons in the total labor force except members of the armed forces –labor force participation rate: the civilian labor force as a % of the civilian non- institutionalized population 4 Employed labor force 4 Unemployed labor force

4. 4 Labor Force by Gender, 1983, 1999, and Projected 2005 60 50 40 30 20 10 0 Women Men 1983 1999 2005Year Percent

5. 5 Labor Force by Race, 1996 and Projected 2006 80 70 60 50 40 30 20 10 0 1996 2006 White, Black Hispanic Asian non-Hispanic and other Race Percent Distribution 75 11 10 12 4 5

6. 6 Trends in the Labor Force and in Employment 4 Older workers 4 Female workers 4 Skilled and unskilled workers 4 Service-oriented jobs 4 Agricultural employment 4 Organized workers 4 Diversity

7. 7 Types of Unemployment 4 Frictional –new entrants and workers between jobs 4 Cyclical –decline in total output, usually due to recession 4 Structural –imbalance between worker skills and skills demanded by the labor market

8. 8 Full Employment 4 Employment Act of 1946 4 Meaning of full employment –full utilization of natural resources, technology and science, farms, factories, knowledge, and trade skills 4 Full employment unemployment rate –rate of unemployment that can be expected from normal frictional unemployment in an otherwise fully employed labor force

9. 9 Full Employment (cont.) 4 Unemployment –workers in the labor force are not currently working at all 4 Underemployment –workers in the labor force are working, but not to full capacity 4 Natural rate of unemployment –rate of unemployment that would occur if the economy was producing at its full potential 4 Humphrey-Hawkins Act

10. 10 International Comparisons of Unemployment Rates, 1998 14 12 10 8 6 4 2 0 U.S.* Canada France Germany Great Italy Japan Britain Countrie s Unemployment Rate * for 1999

11. 11 Employment Effects of Minimum Wage Q d Q e Q s WeWe WmWm S D Number Employed Wage Layoffs Unemployed Entrants