LABOR FORCE

Ch. 12 Notes

Labor Force Make-Up

Made up of: people 16 or

older Civilian Uninstitutionali

zed 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…)

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

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%

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 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

Factors that Influence Wage/Salary

education level Experience risk factors Location supply of workers demand for workers or product produced

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 way New way

NEW Way - Unskilled

a) less than high school education b) example is garbage collector c) paid minimum wage d) about 10% of jobs

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

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

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