Topic 10: The Work Force & Wages Day 1 Notes Textbook Chapters-Chapters 9 & 13
Labor Force • All non military people age 16-65 who are employed or seeking it What it means to be Employed • 16 yrs.+ working for pay at least 1 hr./wk. • 15 yrs.+ w/o pay for family business • Held jobs but didn’t work due to illness, vacation, strike, weather
Population and labor force, 1998, 2008, and projected 2018, in millions
Numeric change in labor force by age, projected 2008–18, in thousands The baby-boom generation—those born between 1946 and 1964—is expected to remain in the labor force longer than previous generations. As this group ages, the number of people in the labor force aged 55 to 64 is expected to increase by more than 7 million during the projections decade, and the number of people aged 65 and older is projected to increase by almost 5 million. The numbers of 45- to 54-year-olds and 35- to 44-year-olds are expected to shrink as baby boomers age and shift into older groups.
Labor force participation rates for men and women, 1958–2008 and projected 2018, in percents The labor force participation rates for both men and women are expected to decline slightly over the projections decade. By 2018, about 71 percent of men and 59 percent of women are expected to be in the labor force.The aging of the population will be a factor driving down labor force participation rates. Despite working longer than previous generations, baby boomers will still have lower levels of labor force participation than those in younger age groups. The baby-boom generation is becoming a larger segment of the total population, driving down overall participation in the labor force.
Percent distribution of labor force by race, projected 2018 Although whites will continue to be the largest racial category in the labor force, other racial groups are projected to make up 21 percent of the labor force by 2018.
Percent growth in labor force by race, projected 2008–18 Although Asians will remain a small part of the labor force, they—along with the "all other races" category—will have the fastest rate of labor force growth between 2008 and 2018. This growth is due to increased immigration and both groups' very high labor force participation rates. The "all other races" category includes American Indians and Alaska Natives, Native Hawaiians and other Pacific Islanders, multiracial individuals, and any other people who do not identify themselves as white, black, or Asian.
Occupational Trends • 1800-1900’s:shift from agriculture to Industrial Revolution which created factory jobs • 1900’s-1960’s:heavy manufacturing • 1970’s- present:boom in electronics led to new factory jobs; revolution in computers created new jobs • Future:Shift from manufacturing to service economy
Implications for the Younger Segment of the Population (18-24 Year Olds) • Must have skills, education, training and experience • Manufacturing jobs disappearing • Most work several jobs before settling
How are wages determined? • Supply & demand…AGAIN • Demand for product changes, so does demand for the labor that produces it
Factors that Affect Wages • Education • Opportunity • Initiative • Discrimination • Women/minorities • Glass ceiling • Laws • Employers • Region • Labor Unions
Education • Highly educated jobs have High Demand, Low supplyHigher salaries • Impact: education increases productivity & results in higher wages
Opportunity • Isolated geography • Job safety • Impact: These factors hinder chances to improve salary • May take dangerous job
Initiative • Lack of motivation • Impact: No effort means no high salary
Discrimination • Women & minorities • Glass ceiling: allow women to rise to a particular place in the company’s hierarchy & then stop the promotions no matter how deserving the employee is • Race & gender keep you from getting a promotion • Impact: Pay gap exists between male & females
Legislation to Prevent Discrimination (Laws) • Affirmative action programs-insure the equitable recruitment of workers • Civil Rights Act of 1964, Equal Pay Act of 1963, & U.S. Code 1963 prevent gender discrimination • Rehabilitation Act of 1973: prohibits discrimination based on handicap • Age Discrimination in Employment Act of 1967 protects those between 40 & 70
Laws • Against wage discrimination • Impact: Prevent unfair practices • Minimum wage laws • Fair Labor Standards Act
Employers • Impact: Outsource • Impact: Results in lay offs & lower wages
Region • Where you live • Impact: Cost of living determines pay differences • NYC vs Ballston Spa
Labor Unions • Impact: Fight for higher wages and better working conditions • Tend to produce higher wages than non-union workers • Strength in Numbers
Outsourcing and Globalization Topic 10 Day 2
Key Terms • Outsourcing-Sending jobs from one nation to another to decrease costs for the business either through manufacturing costs, wages, taxes, etc.) • Globalization-Inter-consecutiveness of the world’s nations through economic, social, and political means. Idea merges theories of cultural diffusion with interdependence.
Outsourcing Advantages & Disadvantages for the Outsourcing Nation: AdvantagesDisadvantages • Provides jobs to people in other countries • Lower prices for consumers • Bigger profit margins • Lower costs of production • Better, higher paying corp. jobs in US • Loss of domestic jobs • Weakens strength of domestic economy • Less tax revenue for country • Loss of power/ #’s in unions • Plant Closings
Impact of Outsourcing • Skilled workers & professionals: increased demand, wages increase • Unskilled/lower skilled: Lowered Demand, Increased Supply Lower Pay Surplus of unskilled workers • Temporary/Contingent workers: People working free lance; as contracted ex. Engineers, attorneys Increased Demand- can adjust for peak seasons, fewer rights, paid less, flexible
Directions: In your notebook make a t-chart of the Advantages and Disadvantages that outsourcing has for India. (The Other Side of Outsourcing 44:20) Advantages Disadvantages
Topic 10 Day 3