Labor Force

Who is employed, unemployed

and uncounted!
 Labor Force
Def. All nonmilitary people who are
employed or unemployed. Also known as
the workforce.
 So, Who is employed?
You are considered employed if:
16 yrs or older and
Worked at least one hour for pay within the
last week or
Worked 15 or more hours without pay in a
family business or
Held a job but did not work due to illness,
vacation, labor disputes, or bad weather.
 Okay, so who is unemployed?
You are considered unemployed if
You are 16 yrs or older, not institutionalized,
not working and meet one of the following
criteria:
Temporarily laid off from their jobs
Will report to a new job within 30 days
Are not working but have looked for work in
the last 4 weeks.
 So, what if I dont fall into any of
those categories?
Millions of Americans are not counted as
part of the workforce. They include:
Military Personnel
Institutionalized individuals (prison, hospitals)
Retired workers
Stay at home parents
Children, students
People who have given up looking for jobs!
(hidden unemployment)
 Equal Pay and Wages
The workforce is supposed to treat all
workers equally
Equal Pay Act of 1963 and Title VII of the Civil
Rights Act of 1964 declare EVERYONE in the
same workplace, performing the same job
had to receive the same amount of pay. Age,
gender, race, ethnicity, etc. should NOT
matter.
 But
Despite these protections, American
Women earn about 75% of what men
earn.

Racial minorities tend to earn lower pay

than white Americans as well.
 Other barriers to women and
minorities
The Glass Ceiling
Some qualified women and minorities find
that they cannot advance beyond a certain
level in companies they work for. They
cannot reach the white, male-dominated
top level positions.
The unofficial, invisible barrier that
prevents some women and minorities from
advancing to the top ranks of business is
called the Glass Ceiling.
 Trends in the workforce
Fewer Goods and More Services
The United States is shifting from a
manufacturing economy (making goods) to a
service economy (providing services).
As service jobs increase, the nation is losing
manufacturing jobs.
Demand for skilled labor is rising, and the supply
for skilled workers is increasing to meet the
demand: ie. More students going to college
because there are few jobs without a college
degree.
 Trends in Wages and Benefits
Earnings up for some, down for others.
Earnings for college graduates have
increased, while earnings for workers
without college degrees have decreased.
So, not only are jobs for people without
college degrees fewer, they pay less
than they used to!
 Why are College Grads worth so
much?
Two theories:
The Learning Effect: education increases
productivity and results in higher wages.
Or, what you learn in school that makes
you better at your job.
The Screening Effect: the completion of
college indicates a job applicant is
intelligent and hard-working. It doesnt
matter what kind of degree, just having
one shows you are smart and hard-
working, therefore earn more money.
 Skill Levels
Jobs are categorized into the following
groups. In general, wages increase as
the skill level increases:
1. Unskilled Labor: requires no specialized
skills, education, or training. Ex. Waiter,
messengers, janitors
2. Semi-Skilled Labor: requires minimal
specialized skills and education. Ex.
Fork-lift operator, Truck Driver
 Skill Levels
3. Skilled Labor: Requires specialized skills
and training. Ex. Auto mechanic,
plumbers, carpenters.
4. Professional Labor: Demands advanced
skills and education. Ex. Lawyers,
Doctors, Engineers, Teachers
 Trends in Wages and Benefits
Costs of Benefits Rises
Benefits are retirement pension, health
and dental insurance, severance, etc.
Rising costs of benefits for workers have
caused employers to cut back on benefits
for employees and hire temporary
employees instead.
Benefits of Temporary Employment
1. Flexible work arrangements
2. Easy discharge due to the lack of
severance pay (payment for being fired)
3. Paid less and receive fewer benefits than
full-time employees
4. Some employees prefer temporary
arrangement (students working
summers, part-time workers, etc.)