l abor chapter 9. l abor m arket t rends section 1
TRANSCRIPT
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LABORChapter 9
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LABOR MARKET TRENDS Section 1
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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.
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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.
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UNEMPLOYMENT Anyone who does not meet the previous
criteria are considered unemployed.
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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
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OCCUPATIONAL TRENDS
A changing economy Started as agricultural, then became industrial,
and has now begun to transfer into a service industry country.
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Occupational Trends
A huge increase in usage of computers on jobs.
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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.
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EFFECTS OF INTERNATIONAL COMPETITION
What would some of the effects of this be? Think supply and demand
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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.
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COLLEGE GRADUATES
Takes money to invest in your individual human capital, as a result your wages will be higher in the long run.
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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.
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WOMEN AT WORK Many more women have entered the labor force. 2008 72.7 percent of women age 25-54 were employed.
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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
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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.