Chapter 9 SECTION 1

1
Chapter 9 SECTION 12

• Labor Market Trends
• Organized Labor

2
Labor Force

• In economics, the people in the labor force are
  the suppliers of labor. The labor force is all
  the nonmilitary people who are officially
  employed or unemployed.1 In 2005, the worldwide
  labor force was over 3 billion people.2

3
Labor Force

• Normally, the labour force of a country (or other
  geographic entity) consists of everyone of
  working age (typically above a certain age
  (around 14 to 16) and below retirement (around
  65) who are participating workers, that is people
  actively employed or seeking employment.

4
FYI

• People not counted include students, retired
  people, stay-at-home parents, people in prisons
  or similar institutions, people employed in jobs
  or professions with unreported income, as well as
  discouraged workers who cannot find work.

5
FYI

• In the United States, the labor force is defined
  as people 16 years old or older who are employed
  or looking for work. Child labor laws in the
  United States forbid employing people under 18 in
  hazardous jobs.

6
white-collar worker

• The term white-collar worker refers to a salaried
  professional or an educated worker who performs
  semi-professional office, administrative, and
  sales coordination tasks,

7
blue-collar worker

• A blue-collar worker is a member of the working
  class who typically performs manual labor and
  earns an hourly wage. Blue-collar workers are
  distinguished from those in the service sector
  and from white-collar workers, whose jobs are not
  considered manual labor.

8
FYI

• as opposed to a blue-collar worker, whose job
  requires manual labor. "White-collar work" is an
  informal term, defined in contrast to
  "blue-collar work

9
Blue-collar work

• Blue-collar work may be skilled or unskilled, and
  may involve manufacturing, mining, building and
  construction trades, mechanical work,
  maintenance, repair and operations maintenance or
  technical installations.

10
FYI

• The white-collar worker, by contrast, performs
  non-manual labor often in an office and the
  service industry worker performs labor involving
  customer interaction, entertainment, retail and
  outside sales, and the like.

11
SERVICE WORKER

• Employee who works in the Service Sector of the
  economy.
• RETAIL
• MC D
• STARBUCKS
• GEEK REPAIR
• INCOME TAX

12
FYI

• As manufacturing employment declines in the
  United States, the service sector and its workers
  have grown very rapidly. The service worker is
  the least represented by unions.

13
SERVICE WORKER

• Form of business providing various types of labor
  services in a wide variety of business sectors.
  For example, a lawn service and maid service
  provide consumers with lawn mowing and
  housekeeping services.

14
SERVICE SECTOR

• Sector of the economy where service businesses
  provide employment and contributions to the Gross
  Domestic Product (GDP). The service sector
  employs over 80 of the American work force. .

15
FACTORS AFFECTING WAGES

• Consumer Price Indexes (CPI)Monthly data on
  changes in the prices paid by urban consumers for
  a representative basket of goods and services.
  Producer Price IndexesMonthly data on changes
  in the selling prices received by domestic
  producers of goods and services.

16
FYI

• Import/Export Price IndexesMonthly data on
  changes in the prices of imported and exported
  nonmilitary goods traded between the U.S. and the
  rest of the world.

17
FYI

• Consumer Expenditure SurveyData on the buying
  habits of American consumers, by socioeconomic
  characteristics.
• UNEPLOYMENT
• EDUCATION
• SUPPLY/ DEMAND

18
gt AUTOMATION TECNOLOGY

• Automation is the use of control systems and
  information technologies reducing the need for
  human intervention.1 In the scope of
  industrialization, automation is a step beyond
  mechanization.

19
FYI

• Whereas mechanization provided human operators
  with machinery to assist them with the muscular
  requirements of work, automation greatly reduces
  the need for human sensory and mental
  requirements as well. Automation plays an
  increasingly important role in the world economy
  and in daily experience.

20
advantage of automation

• The main advantage of automation are
• Replacing human operators in tasks that involve
  hard physical or monotonous work.

21
FYI

• Replacing humans in tasks that should be done in
  dangerous environments (i.e. fire, space,
  volcanoes, nuclear facilities, underwater, etc)

22
FYI

• Making tasks that are beyond the human
  capabilities such as handling too heavy loads,
  too large objects, too hot or too cold substances
  or the requirement to make things too fast or too
  slow.

23
advantage of automation

• Economy improvement. Sometimes and some kinds of
  automation implies improves in economy of
  enterprises, society or most of humankind.

24
FYI

• For example, when an enterprise that has invested
  in automation technology recovers its investment
  when a state or country increases its income due
  to automation like Germany or Japan in the 20th
  Century or when the humankind can use the
  internet which in turn use satellites and other
  automated engines.

25
main disadvantages of automation are

• Technology limits. Current technology is unable
  to automate all the desired tasks.

26
FYI

• Unpredictable development costs. The research and
  development cost of automating a process is
  difficult to predict accurately beforehand. Since
  this cost can have a large impact on
  profitability, it's possible to finish automating
  a process only to discover that there's no
  economic advantage in doing so.

27
FYI

• Initial costs are relatively high. The automation
  of a new product required a huge initial
  investment in comparison with the unit cost of
  the product, although the cost of automation is
  spread in many product batches. The automation of
  a plant required a great initial investment too,
  although this cost is spread in the products to
  be produced.

28
main disadvantages of automation are

• UNEMPLOYMENT
• At first glance, automation might appear to
  devalue labor through its replacement with
  less-expensive machines however, the overall
  effect of this on the workforce as a whole
  remains unclear. citation needed

29
FYI

• Today automation of the workforce is quite
  advanced, and continues to advance increasingly
  more rapidly throughout the world and is
  encroaching on ever more skilled jobs, yet during
  the same period the general well-being and
  quality of life of most people in the world
  (where political factors have not muddied the
  picture) have improved dramatically. What role
  automation has played in these changes has not
  been well studied.