THE U.S. LABOR FORCE

Entering the Labor Force Labor Force: Includes all people who are at least 16 years old and are working or actively looking for work. In the U.S. two thirds of all people 16 years of age or older are members of the civilian labor force. The civilian labor force makes up 98% of all people in the U.S. who are working or looking for work. Armed forces are employed by the military.

How do people decide what kind of jobs they want in the Labor Force?

The most important factor in choosing an occupation is the SALARY or WAGES.

Consider the following: Job Duties Long-term vs Short-term Advanced Opportunities Commute

Question? What is more important to you -choosing an occupation that pays high wages or choosing an occupation that you have a passion for? Remember: “Do what you like. Like what you do.”

Entering the Labor Force

Wages Consider the kinds

of jobs are in demand and the supply of different kinds of workers.

Supply and Demand affect the prices of other resources, they also affect the price of labor, or workers’ wages.

When an occupation has many potential workers but few available jobs, the wage rate tends to be low.

High wages occur when the number of workers are interested and are qualified for an occupation is limited and the demand for them is high.

It is best to find a good-paying job in an occupation with a high demand and a low supply of workers.

Skills Education, experience, and abilities all

affect your skills and help determine what jobs you are-and are not- eligible to hold.

Skill level can limit the supply of workers. The more skills a particular job requires, the fewer qualified people there are who can perform the job.

Jobs requiring high skill levels usually offer higher wages.

Low-skilled labor occupations usually offer lower wages.

Working Conditions The U.S. work place is carefully regulated

by federal and state legislation. Some high-risk occupations can be

dangerous such as; skyscraper construction, fire fighting, coal mining, clean-up crews (911 ground zero).

Hazardous occupations sometimes pay higher wages than those jobs with low risks to life.

Location Sometimes employers offer higher wages

to encourage workers to move to a different area.

Jobs in distant or remote locations pay higher wages to help make up for the isolation.

Engineers who are recruited to work in other nations receive higher salaries.

Intrinsic Rewards Intrinsic rewards are nonmonetary

reasons for working at a particular job. such as; worker’s pride, respect. Intrinsic reward jobs often pay lower

salaries.

Market Trends Is the industry expanding or contracting? Consumers’ demand for a particular good

creates a demand for the labor-and other resources-needed to produce the good.

Derived demand: Is the increased demand for resources, such as labor, that results from consumer demand for a particular product. For example, in the 1900s consumer demand shifted from the horse and carriage to the automobile.

Changes in the Labor Force

The industrialization revolution in the U.S. in the 1700-1800 encouraged factory workers.

The U.S. economy became capital-intensive, or dependent on machines to produce goods.

Agricultural economies are labor-intensive, producing goods through animal and human power.

In the 1700s, 80% of the labor force was farm labor.

By 1850 farmworkers made up only 63% of the labor force.

By 1900 labor made up only 37% of the labor force.

Today less than 3% of the U.S. Labor force works in agriculture.

In the U.S. 90% of the workers hold services and manufacturing jobs.

Women in the Labor Force

The industrialization movement created more factory labor for women.

During WWI & WWII women continued to be part of the workforce. In WWI – 1.5 million worked in defense plants and during WWII more than 4 million women worked in the defense plants

Today 6 out of 10 women in the U.S. are part of the labor force, compared to 3 out of 4 men.

Educational facilities have given women the opportunity to gain the same level of job training as men.

Higher Education Levels Increase education levels improve

employment opportunities for men & women.

A worker’s level of education will increase his or her income level.

Antidiscrimination Laws The Equal Pay Act of 1963 requires

employers pay the same wages to male & female workers who perform the same job.

The Civil Rights Act of 1964 protects workers form employer discrimination based on race, sex, religion, or national origin.

The Family and Medical Leave Act of 1993 protects employment for medical/family emergency (ex: pregnancy, family illness...).

Affirmative Action: Program aimed at eliminating racial and gender bias in the workplace. Quotas were sometimes used as a hiring practice to encourage employment of women and minorities.

Supreme Court Case- Regents of the University of California v Bakke (1978)

Supreme Court Case Supreme Court Case-

Regents of the University of California v Bakke (1978) Allan Bakke, a white male, had been denied admission to the university’s medical school at Davis. The school had set aside 16 of the 100 admission seats for nonwhite students. He sued the university for reverse discrimination and the violation of the 14th Amendment and the equal protection law.

Supreme Court ruled by a 5-4 majority. The Court held that Bakke had been denied equal protection and should be admitted to the medical school.

Minimum Wage Laws The U.S. government passed legislation

to protect minimum wage. The national minimum wage today is

$7.25. The Fair Labor Standards Act of 1938

established the first minimum wage at 40 cents per hour.