Warm-up

Give me a list of 5 stressful & 5 non-stressful jobs and one reason for each….

STRESS V. NON-STRESS

Most stressful: President, firefighter, senior corporate executive, Indy class race car driver, taxi driver, surgeon, astronaut, police officer, football player and air-traffic controller!!

LEAST stressful: medical records tech, janitor, forklift, operator, musical instrument repairer, florist, actuary, appliance repairer, medical secretary, librarian and bookkeeper.

Ch 9 Labor

Ch 9.1 Labor Market Trends

Labor Force: all ______________people who are employed or unemployed Employment (at least 16 years or older)

They worked at least ____________ for pay within the week They worked 15 or more hours _______________ in a family

business They held jobs but did ____________ due to illness,

vacation, labor disputes or bad weather Unemployment

Temporarily without work Not working but ______________________ within last ___

weeks

non-military

one hourwithout pay

not work

looking for a job 4

People outside the labor force

Full-time students Stay at home parents ______retirees

Bureau of Labor Statistics

BLS provides answers to 2 important Economic Questions 1. How many people are in the labor force 2. How many are employed and

unemployed at any given time? Unemployment rate this month: _________10.2

Occupational Trends

Changing Economy From _________ to the Industrial Revolution to

the Information Age Fewer Goods, More _______

Ex: financial services (banking, insurance, investments), online services (web design, advertising), consulting, health care, publishing

Effects of International Competition With the increase of services, manufacturing

and less-skilled jobs go overseas

farmers

Services

Changing Labor Force

1950’s: White man high school grad, took ______________, retire age 65 (if lucky)

Today: College Grad, _____ different jobs, retire age 62.

LEARNING EFFECT: education increases ____________ and results in higher wages.

SCREENING EFFECT: the completion of college indicates to employers that a job applicant is intelligent and ______________.

Women Enter Workforce & Temporary Workers

1 job for his life4-5

productivity

hard-working

Trends in Wages & Benefits

BLS : The average weekly earning _________from $275 in 1980 to $271 in 1999.

WHY??? Because of health insurance, retirement funds, employee stock options,, year-end bonuses, flex-time, social security

decreased

Temporary Workers

Contingent employment: temporary and part-time jobs. Usually hired for a specified time period to complete a certain task. This is becoming more common. Ex. Software engineers, attorneys, professors…WHY?

Flexible work ________ temp workers is easier They are paid less with fewer ______ People prefer it.

Discharge

benefits

Would you hire permanent workers or temporary workers if you owned:

A pool and garden shop in Minnesota?___________

An architectural firm in Dallas?___________

A Laundromat in Atlanta?_____________ A tax preparation service nationwide?

___________

Ch 9.2 Labor and Wages

Labor Demand, Supply & Equilibrium Firms try to keep workers wages close to

their level of productivity. Those specialized & in short supply get ____________ (brain surgeon).

An equilibrium wage produces neither excess supply nor excess demand for workers in the labor market.

higher wage

Wage and Skill Level

Unskilled labor: ___________, no training (dishwasher, janitor)

Semi-skilled: Minimal skills and education (lifeguard, cook)

Skilled Labor: Training usually at operating equipment and usually are paid hourly instead of on salary (plumber, firefighter)

Professional Labor: _____________ who receive a _____ (dr,teacher)

NO SKILLS

advanced skillssalary

Wage Discrimination

Equal ____ Act of 1963 required that male and female employees performing the same job receive the ________

Title VII of the Civil Rights Act of 1964 prohibits job discrimination on the basis of race, sex, color, religion, or nationality.

Pay

same pay

Despite protection the gap continues1. Women's work : traditionally women

pursue careers in _____ paying fields.2. Human Capital : traditionally women have

______________, training and experience in certain occupations.

3. Women's career paths: Many women face balancing ___________ and some employers assume females are not interested in career advancement.

lower

less education

child rearing

Glass Ceiling

The unofficial, invisible ________ that sometimes prevents some women and minorities from advancing tot the top ranks of business.

barrier

Other Factors Affecting Wages

Minimum Wage Laws (artificially increases price of labor and can decrease quantity demanded)

Safety Laws (higher wage for more dangerous work)

Substitute __________ for Man Unions: organization of workers that tries to

improve working conditions, wages and benefits for its members. ___________: negotiating labor contracts that

keep unnecessary workers on the company payroll

Machine

Featherbedding

Global Connections

An average production worker in the US makes 31K a year. In Germany its 36K, Hungary 9K, France 28K, Japan 28K, Turkey 16K and Mexico 9K.

Ch 9.3 Organized labor

The Labor Movement & Its Decline Unions arose because of Industrial Revolution

in early/mid 1800’s…Manufacturing brought in new occupations: the factory job

Child labor, 16 hr/7days a week, meager wages Strikes =_____________________ Early 1900’s unions began to abuse power

(featherbedding) Right-to-Work laws: banned mandatory union

membership (mainly in the south) thus today's union membership is only______

organized work stoppage

13.5%

Blue collar worker – are those who work in ________________, often manufacturing, who works_______. They have been declining in recent years.

White-collar worker is someone in a professional or clerical job who earns a________.

industrial jobshourly

salary

Labor & Management

_______________: the process in which union and company representatives meet periodically to negotiate a new labor contract.

Contracts usually last 2-5 years and can cover hundreds of issues Wages and benefits Working conditions Job security

Collective bargaining

Strikes and Settlements

Unions may ask members to vote on whether to strike…and they can cripple a company.

Mediation – settlement technique in which a neutral mediator meets with each side to try to find a ___________ that both accept

Arbitration – settlement technique in which a ______________review and imposes a decision that is _______________(post med)

solution

neutral third partylegally binding

SEVEN GROUPS: Radio Station, Shoe Store, Pet Store, Orchard, Computer Store, Restaurant, Toy Store

Each group makes a proposal/pitch to an investor. Include: Name of Business, Location, what selling, logo, demographics, startup costs, amount of labor needed, etc... make Pitch!