Economics for Leaders

1. Economics for Leaders Lesson 5: Labor Markets

2. Economic Reasoning Principle # 4: Institutions are the “rules of the game” that influence choices. • Laws, customs, moral principles, superstitions, and cultural values influence people’s choices. These basic institutions controlling behavior set out and establish the incentive structure and the basic design of the economic system.

3. Economic Reasoning Principle # 2: Choices impose costs; people receive benefits and incur costs when they make decisions. • The cost of a choice is the value of the next-best alternative foregone, measurable in time or money or some alternative activity given up.

4. Please use the slides before this one in your presentation. • The slides following this one are provided as options.

7. Excess Supply: Migrant Workers Until effective legislation to stem the flow of illegals, large and growing demand for crop workers could be satisfied without raising wages because of the excess supply of illegal immigrants.

8. Excess Demand:Rosie the Riveter: Excess demand in WWII pulled women into the factory work force at higher wages than they could make in traditional “women’s occupations.”

9. From BLS Table 6:The 30 fastest-growing occupations, 2006-2016 • Network systems and data communications analysts • Personal and home care aides • Health care aides • Computer software engineers • Veterinary technologists and technicians • Personal finance advisors • Make-up artists, theatrical and performance • Medical assistants • Veterinarians • Substance abuse and behavioral disorder counselors • Gaming surveillance officers and investigators • Physical therapist assistants

10. From BLS Table 8:The 30 occupations with largest employment declines, 2006-2016 • Store clerks and order fillers • Cashiers, except gaming • Packers and packagers, hand • File clerks • Farmers and ranchers • Order clerks • Cutting, punching, and press machine setters, operators, and tenders, metal and plastic • Telemarketers • Inspectors, sorters, testers, samplers, and weighers • First line supervisors of production • Computer operators • Photographic processing machine operators

11. 10 Industries w/ Largest wage & Salary Employment Growth, 2006-2016 Industry % Change • Management, sci., and tech. consulting services 77.9 • Employment services 18.9 • Gen. med. & surg. hosp., pubic & private 13.9 • El & sec schools, public & private 7.6 • Local government, excluding education and hospitals 10.9 • Offices of physicians 24.8 • Limited-service eating places 13.2 • Colleges, universities, and professional schools, public and private 14.5 • Computer systems design and related services 38.3 • Home health care services 55.4

12. 10 Industries w/ Largest wage & Salary Employment Declines, 2006-2016 Industry % Change • Gasoline stations -16.9 • Printing & related support activities -21.8 • Motor vehicle parts manufacturing -21.1 • Department stores - 7.3 • Cut & sew apparel manufacturing -58.4 • Wired telecommunications carriers -20.8 • Crop production (primary job) -18.2 • Federal gov’t (excluding postal serv.) - 4.6 • Office supplies, stationary & gift stores -20.9 • Computer & peripheral equipment manufacturing -33.5

13. Technology & Productivity

14. $225 Million Superstars!

15. $150 Million

16. $112 M

17. $647 Million

18. Sweatshops

19. Where Will They Go?

20. 20% or + 15-19.9% 10 –14.9% 5-9.9% 4.9% or - Source: U.S. Dept. of Labor, BLS

21. Minimum Wage

24. Child Labor Laws