2 The Labor Force Today’s labor force is transforming before our eyes Computer related occupations is where the jobs are atBureau of Labor Statistics survey households to assemble the necessary information about employed & unemployed peopleEmployed:16 years or older1 hour of pay per week15 or more hours of weekwithout pay (family bus.)Illness, vacations, bad weather,or labor disputes
3 Unemployed People who do not meet the qualifications for the employed Must have worked lined up in the futureActively searching for a jobExceptionsF/T studentsStay at home parentsDiscouraged workersThe BLS provide the answersto 2 economic questions:How many people?How many are employed orUnemployed at the same time?
4 Occupational Trends A changing economy Fewer Goods, More Services: Change from a manufacturing economy to a service economyProductions of services increasing faster than those in goodsInternational Competition Effects:Today capital & labor are mobileCrossing international bordersDemand for skilled workers has increasedA changing economyOnce a nations of farmersIndustrial revolutionThe rise of corporationsElectronics industryTechnological AgeInformation Age½ American workers reported some use of computers on the job
5 The Changing Labor Force A person can expect to have 4 to 5 different jobs in their lifetimeCollege GraduatesHuman capital.Cost $HS Diploma will not prepare you for financial successHigher earnings compensate for expenseLearning effectScreening Effect:Tells an employee thatyou are hardworking &intelligentIdentifies useful qualitiesfor employees
6 The Changing Labor Force Cont. Women at WorkChanging face of the workforce38% of workforce in 1960 to 60% by the year 2000Encouraged to get a higher educationMore jobs in the service than in physical strengthMore than 61% by 2006Temporary WorkersP/T & Temp workers seem to be more popularContingent employment: white collar/contract workersFlexible arrangementDischarging is easierPaid less & fewer benefitsWorkers prefer flexible arrangement
7 Trends in Wages & Benefits Up for some but down for othersThe last 20 years there has been slightly lower earnings$275 (1980) to $278 in 2003 with measured inflation at the dollar amount of $523Paid in wages before but benefits cost nowCollege graduates earnings have gone up while workers w/out education degrees have decreasedGreater competition with cheapForeign laborDeregulation of industries haveForced firms to cut employeesWages as competition hasincreased
8 Benefit CostsPensions & health insurance are a significant portion of wages received28% of total compensation in the US economy todaySS is seen as a benefitContingent employmentProduction facilities moving overseasThe more benefit costs continue to rise the more firms will continue to cut in order to make a profit