L ABOR Chapter 9. L ABOR M ARKET T RENDS Section 1.
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Transcript of L ABOR Chapter 9. L ABOR M ARKET T RENDS Section 1.
LABORChapter 9
LABOR MARKET TRENDS Section 1
TRACKING THE LABOR FORCE
Bureau of Labor Statistics (BLS) They assemble information about the labor force.
The labor force is all the nonmilitary people employed or unemployed.
EMPLOYMENT At least 16 years old
Worked 1 hr for pay within last week. Worked 15 hrs without pay for family business, farm. Held job, but did not work due to illness, labor
disputes, or bad weather.
UNEMPLOYMENT Anyone who does not meet the previous
criteria are considered unemployed.
THE BUREAU OF LABOR STATISTICS
Location (summer 2008) Unemployment Rate
Elkhart-Goshen 5.0↓Indianapolis 4.1↓Lafayette 4.1↓
Location Unemployment Rate
United States 5.5↑
Elkhart-Goshen 14.8 Dec. 2009
Indianapolis 8.5
Lafayette 8.6
Chicago 11.6 ↑United States 9.7 Feb. 2010
OCCUPATIONAL TRENDS
A changing economy Started as agricultural, then became industrial,
and has now begun to transfer into a service industry country.
Occupational Trends
A huge increase in usage of computers on jobs.
EFFECTS OF INTERNATIONAL COMPETITION
Many factory and other low-skill jobs have moved outside of the U.S. because of the lower wages and less benefits they can pay foreign employees.
EFFECTS OF INTERNATIONAL COMPETITION
What would some of the effects of this be? Think supply and demand
THE CHANGING LABOR FORCE
People used to have secure 40 hr a week job and retire around at age 65.
Today people usually work 4-5 jobs and frequently retire earlier.
COLLEGE GRADUATES
Takes money to invest in your individual human capital, as a result your wages will be higher in the long run.
THEORIES ABOUT EDUCATION
Learning effect: the theory that education increases productivity and results in higher wages.
Screening effect: the theory that the completion of college indicates to employers that a job applicant is intelligent and hardworking.
WOMEN AT WORK Many more women have entered the labor force. 2008 72.7 percent of women age 25-54 were employed.
Temporary Workers
Increase as temporary and part-time jobs, these are known as contingent employment. People just brought in for short term and
released, even some professional jobs
TRENDS IN WAGES AND BENEFITS
Earnings up for some, down for others. Average weekly earnings have gone down since
1980 from $241 to $222( when accounting for inflation. A $19 decrease.
Does not account for added fringe benefits we have today. College grad incomes actually up, low-skilled down.