Today’s Schedule – 10/21• Finish Reviewing Franchise Reports• Discussion: Minimum Wage, a Living

Wage?• PPT: Labor Market Trends• BLS Research• HW:– Study for Unit 3 Test

– CHECK GRADES ON SPA: FRIDAY IS LAST DAY FOR MISSING WORK

Labor Force• All people who are employed or

unemployed–Not included: Full time students,

retirees, stay at home parents• Unemployed: Out of work but looking for

work• Data is collected by the Bureau of Labor

Statistics (“BLS”)–Collected monthly

Occupational Trends

• Started as a nation of farmers• North development of the Industrial

Revolution• Electronics boom: Radios, TVs• Information Age: PCs

Effects of Information Age

• Move away from manufacturing jobs to service jobs–Jobs sent overseas

• Less demand for unskilled workers–Must get more education

• Demand for skilled labor increasing–Wages increasing

The New Labor Force

Then• White• Male• High school

graduate• 40 hours a week• Retire at 65

Now• 4-5 different

jobs in a lifetime• Early retirement

possible

Importance of Education• Increasingly important to have college

degree• Still small supply of educated workers• Higher wages to those who are educated

to compensate for costs in obtaining education and higher productivity: learning effect• Idea that college educated employees are

good because of innate skills: screening effect

Women in the Workforce

• Increased presence in the work force• More importance on education• Less manufacturing–Strength not as necessary

Temporary Workers

• Increasing use of–Flexible work arrangements–Easy discharge–Paid less–Fewer benefits

Wages and Benefits

• Wages of college graduate has increased• Wages of those without a college degree

has decreased• Foreign competition has kept some

wages from increasing• Benefits included in wages–Healthcare, retirement packages, stock

options