1. LABOR FORCE Ch. 12 Notes

2. Labor Force Make-Up  Made up of:  people 16 or older  Civilian  Uninstitutionalized  who want a job or have one  Can be in one category in terms of the work force: 1. employed (have a job) 2. unemployed (no job but are looking for one) 3. out of the labor force (choose not to work - laziness, retired, homemaker, disability…)

3. Employed or Unemployed?  one hour of paid work in the last week  ran own business  worked 15 or more hours unpaid in a family business  only temporarily absent due to illness, weather, strike, or vacation  did not work in last week and currently looking and available for work  waiting to be called back from a lay off  waiting to report to a job within 30 days How to Know you are Employed How to Know you are Unemployed

4. Calculating Labor Force  Employment Rate = # persons employed ÷ # persons in the labor force  Unemployment Rate = # persons unemployed ÷ # persons in the labor force  Typical labor force participation = 50% of population  Normal rate of Unemployment in US – 5%  Current rate of Unemployment in US – 8.5%

5. Types  Types of Unemployment  Frictional: between jobs, first job  Structural: job is obsolete  Cyclical: lost job due to recession; laid off  Discouraged Worker: looked for a job, could not find one, so gave up  Types of Unemployment  Frictional: between jobs, first job  Structural: job is obsolete  Cyclical: lost job due to recession; laid off  Discouraged Worker: looked for a job, could not find one, so gave up  Types of Employment  Full Time: 40 hours a week paid; benefits  Part Time: less than 40 hours; not getting as many hours to work as you want  Seasonal: at specific, brief times of the year  Underemployed: does job below skill level  Types of Employment  Full Time: 40 hours a week paid; benefits  Part Time: less than 40 hours; not getting as many hours to work as you want  Seasonal: at specific, brief times of the year  Underemployed: does job below skill level

6. Factors that Influence Wage/Salary  education level  Experience  risk factors  Location  supply of workers  demand for workers or product produced

7. Categories of Workers  Blue collar which is crafts and manufacturing vs.  white collar which is office workers and sales type jobs  4 categories divided by skill and education level Old fashion wayNew way

8. NEW Way - Unskilled  a) less than high school education  b) example is garbage collector  c) paid minimum wage  d) about 10% of jobs

9. NEW Way – Semi-Skilled  a) high school degree plus some training  b) example receptionist  c) earn minimum wage to $10/hour  d) about 20% of jobs

10. NEW Way - Skilled  a) about 2 years of training to earn an associates degree or certification  b) example is a computer tech  c) earn from $10-50 per hour  d) about 50% of jobs

11. NEW Way - Professional  a) 4 or more years of university to earn at least a bachelor’s degree  b) example is accountant, teacher, engineer  c) earns $25,000 to $100,000 per year  d) about 20% of jobs