1. Eco 12/1 Americans at Work

2. The Civilian Labor Force Civilian labor force- total number of people 16 yrs. or older who are employed or seeking work. Those not able to work- disabled or in prison- are not included Military personnel and those not looking for work are also not included.

3. Categories of Workers Blue collar. Work in crafts, manufacturing, non-farm labor. Blue collar. Work in crafts, manufacturing, non-farm labor.

4. Categories of Workers White collar- workers employed in offices, sales, professional positions. Largest sector, including doctors, engineers, teachers, etc. White collar- workers employed in offices, sales, professional positions. Largest sector, including doctors, engineers, teachers, etc.

5. Categories of Workers Service sector- People who provide services directly to individuals. Cooks, piano tuners, hair stylists… Service sector- People who provide services directly to individuals. Cooks, piano tuners, hair stylists…

6. Jobs Categorized by Skill Level Unskilled workers- jobs need no specialized training. (Waiting tables, custodial work.) Unskilled workers- jobs need no specialized training. (Waiting tables, custodial work.) Semiskilled workers- jobs require some training. ( Nurse’s aid) Semiskilled workers- jobs require some training. ( Nurse’s aid) Skilled workers- learned trade or craft, vocational school, apprenticeship. (Cops, masons) Skilled workers- learned trade or craft, vocational school, apprenticeship. (Cops, masons)

7. Professionals Need college degrees, additional training, education. (Teachers, lawyers, accountants.) Need college degrees, additional training, education. (Teachers, lawyers, accountants.)

8. Supply and Demand in the Labor Market Suppliers are the workers who offer their services. Suppliers are the workers who offer their services. Demand comes from employers who need workers. Demand comes from employers who need workers.

9. Supply and Demand in the Labor Market Three factors affect how supply and demand determine prices: 1. Skill/ initiative/ productivity 2. Type of job 3. Location

10. Skill/ Productivity Demand for good workers is high and supply is low, creating a shortage. Shortage leads to high salaries. Demand for good workers is high and supply is low, creating a shortage. Shortage leads to high salaries. (Brain surgeons, NBA, etc.)

11. Type of Job Unpleasant, dangerous jobs pay more, because there’s less supply- fewer people who’ll do them. (Coal mining) Unpleasant, dangerous jobs pay more, because there’s less supply- fewer people who’ll do them. (Coal mining)

12. Desirable jobs… sometimes make little money. Supply is high (many people want them.) sometimes make little money. Supply is high (many people want them.) So there is a SURPLUS of workers who want them, pushing wages DOWN. So there is a SURPLUS of workers who want them, pushing wages DOWN.

13. Location If workers are relatively scarce in an area, wages will be high. If workers are relatively scarce in an area, wages will be high. Alaska has highest wages per person in country. (Shortage)

14. Restrictions on Wages Labor market is not perfectly competitive. Labor market is not perfectly competitive. The flow of information is imperfect, so workers can’t know what other employers are willing to pay. Employers can’t know what workers are willing to accept. The flow of information is imperfect, so workers can’t know what other employers are willing to pay. Employers can’t know what workers are willing to accept. Lack of info- “market failure” Lack of info- “market failure”

15. Other Restrictions on Wages Minimum wage laws- set lowest legal hourly wage rate that may be paid. Minimum wage laws- set lowest legal hourly wage rate that may be paid. They often hurt workers. Some firms hire fewer workers. That delays their getting job skills, and reduces their value later.

16. Restrictions on Wages Wage negotiations between labor (unions) and management. Wage negotiations between labor (unions) and management. Supply and demand have less influence on wages than seniority, length of the contract, and company’s ability to pay higher wages. Supply and demand have less influence on wages than seniority, length of the contract, and company’s ability to pay higher wages.