1. U.S. Labor Force
The American Worker

2. Productivity, Skills, and Wages
What happens if you’re a good worker?
How can a worker make more wages?
Skills and knowledge
Innovations and inventions
Technological changes
Results in higher wages without increasing production costs or reducing profits

3. Productivity and Wage
Businesses can pay workers higher real wages without increasing production costs

4. Supply, Demand and Wages
What’s another word for wage?
Wage is the price of labor
Which is more scarce:
Computer animator
Manual animator
Which is more productive?
Which will get paid more?

5. Changes in Labor Force Labor force defined: Sector shifts
Everyone over 16 who is employed or looking for work
Sector shifts
Away from Agriculture to goods
Away from goods to services
New workers in the market
Women
Teens

6. More Changes Working less
Changes in technology increase demand for certain jobs
Several career changes

7. Teacher’s $$ vs. Attorney’s $$
Differences in ability
Differences in effort and jobs
Experience
Education and training
High school grad median $26,000
College grad median $40,000
It’s not a matter of fairness; it’s a matter of supply and demand.

8. Labor Unions Definition Collective bargaining
An association of workers who seek to promote their members’ interests
Collective bargaining
Negotiations between union leaders and managers