[ 5.5 ] The Labor Force

[ 5.5 ] The Labor Force Learning Objectives Describe how trends in the labor force are tracked. Analyze past and present occupational trends. Summarize how the U.S. labor force is changing. Explain trends in the wages and benefits paid to U.S. workers.

[ 5.5 ] The Labor Force Key Terms labor force outsourcing, offshoring. learning effect. screening effect. contingent employment. guest workers.

Tracking the Labor Force Have you considered how you want to earn a living when you get out of school? You may be one of those people who has been focused on a career goal for as long as you can remember, or you may not have a clue. Is your goal to help others, make a lot of money, or travel? Whatever career you decide on, you will have to be prepared for change.

Tracking the Labor Force Employment and Unemployment The Labor Market Today

Tracking the Labor Force In 1950, nearly 34 percent of U.S. jobs were in manufacturing, a percentage that has fallen over time. Here, workers at a plant in Minnesota assemble thermostats.

Tracking the Labor Force The chart shows that more than a third of the population 16 and over is not in the labor force. Analyze Charts How is being unemployed different from not being in the labor force?

Tracking the Labor Force Analyze Graphs In what year between 1970 and 2013 was the unemployment rate the lowest? What was the unemployment rate in that year?

Occupational Trends The job market does not stay the same all the time. It grows as the nation’s economy and population grow. The jobs that make up the job market also change. New technologies or new industries bring new jobs to life—and cause others to fade. Shifts in the job market reflect major shifts in what our economy produces. You can better understand these changes by looking at them in a historical context.

Occupational Trends A Changing Economy Fewer Goods, More Services Effects of International Competition

Occupational Trends In a little over 200 years, industry in the United States has changed dramatically. Analyze Information What 50-year period do you think has seen the most change and innovation, and why?

Occupational Trends Computers and hand-held devices such as cellphones and tablets have changed the way business, including farming, is done in the United States.

The Changing Labor Force Not only have jobs changed; workers have also changed. In the 1950s, a typical American worker was a white man who had graduated from high school and had found a secure 40-hour-a-week job where he probably hoped to stay until retiring at age 65. Not anymore. Today, more women and members of minority groups are in the workforce. In addition, someone entering the workforce can expect to have four or five different jobs during his or her working life.

The Changing Labor Force College Graduates Women at Work Temporary Workers The Impact of Foreign-Born Workers

The Changing Labor Force Colleges and universities often hold job fairs to help students make career choices and find employment. Having a college degree can mean greater earning opportunities.

The Changing Labor Force More education corresponds to greater income. Analyze Graphs How do the earnings of someone with a professional degree compare to those of someone with a high school diploma?

The Changing Labor Force The graphs illustrate trends related to the U.S. labor force. Analyze Graphs About how many times as many temporary employees were employed in 2012 as were employed in 1970?

Wages and Benefits Trends Labor economists study not only who is in and out of the workforce, but how they are doing in terms of earnings and benefits. Today, the picture is mixed.

Wages and Benefits Trends Real Wages Down Cost of Benefits

Wages and Benefits Trends Because real wages have actually gone down in recent years, the average worker is able to purchase less with a paycheck than he or she would have been able to purchase in 1979.

Quiz: Tracking the Labor Force Which of the following is NOT information the Bureau of Labor Statistics provides? A. the number of people in the U.S. labor force B. the number of employed and unemployed people in the labor force C. the monthly unemployment rate D. the future employment figures for specific companies

Quiz: Occupational Trends Which of the following is a reason that companies engage in offshoring? A. Educational opportunities for workers may be greater in some other countries. B. Factories in some countries may utilize newer technology. C. Labor costs may be lower in some other countries. D. The cost of building factories is higher in some other countries.

Quiz: The Changing Labor Force Which of the following must a company that wants to hire guest workers show? A. that the guest workers they hire will eventually leave the United States B. that using guest workers will cause company profits to increase C. that the guest workers they hire will eventually become permanent workers D. that using guest workers will not lower the wages of native-born workers

Quiz: Wages and Benefits Trends Which of the following is among the reasons why average real wages have declined in the last couple of decades? A. Less competition from foreign countries has decreased the demand for workers. B. A decrease in the number of people obtaining college degrees has decreased the number of high-wage jobs. C. Deregulation of some industries has increased competition, causing employers to cut wages. D. A decreased use of temporary work has limited wage growth.