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.