Labor force: The portion of the population that has paid work or is seeking work. Active members of the military are not considered part of the labor force.
Offshoring: Relocating work and jobs to another country.
Equilibrium wage: The rate of pay that results in neither a surplus nor a shortage of labor. If the wage for a job is set above equilibrium level, too many workers will apply. If it is set below, too few will apply.
Fringe benefits: Nonwage compensation offered to workers in addition to pay. Examples include health insurance plans and paid vacations.
Wage gap: A difference in the wages earned by various groups in society.
Affirmative action: Policies designed to promote the hiring of individuals from groups that have historically faced job discrimination. Such groups include minorities, women, and people with disabilities.
Collective bargaining: Negotiations between an employer and a group of employees, usually represented by a labor union, to determine the conditions of employment.
Right-to-work law: A law that prohibits employers from making union membership a requirement for getting or keeping a job. Twenty-two states have right-to-work laws.
Introduction
What Trends Are Shaping Today's Labor Market?
A Larger, More Diverse Labor Force
The labor force has become more diverse with increased participation from women and immigrants, leading to a richer pool of skills and experiences in the workforce.
A Shift from Manufacturing to Service Jobs
There has been a notable shift from manufacturing to service-oriented jobs in the economy, reflecting changes in consumer demand and technological advancements.
Increased Outsourcing, Temping, and Telecommuting
The rise of outsourcing, temporary employment, and telecommuting has created more flexible job options, catering to a variety of work preferences and lifestyles.
The Globalization of Work: Offshoring, Inshoring, and Foreign Competition
Globalization has expanded work opportunities and competition, with offshoring and inshoring becoming common strategies for businesses to manage costs and access new markets.
What Determines How Much Workers Earn?
Equilibrium in Wages
The concept of equilibrium wage plays a critical role in balancing the labor market, ensuring that supply meets demand at a sustainable wage level.
Demand and Supply in the Labor Market
Worker wages are significantly influenced by the demand for their skills and the supply of workers available to meet that demand.
Other Factors that Affect Wages
Factors such as minimum wage laws, working conditions, location, cost of living, fringe benefits, and foreign competition also play a crucial role in determining wages.
The Wage Gap and Affirmative Action
This section discusses how wage disparities exist among different groups and how affirmative action aims to address such inequities in the labor market.
How Can You Increase Your Human Capital?
The Starting Point: Aptitudes, Interests, and Aspirations
Identifying personal strengths, interests, and career goals is the first step towards developing human capital.
Becoming Qualified: Education, Certification, and Licensing
Formal education, obtaining certifications, and meeting licensing requirements are key ways to enhance skills and qualifications.
Increasing Personal Productivity: Effort and High Standards
Personal effort and adherence to high standards in work and ethics can significantly boost one's productivity and value in the labor market.
Building a Personal-Professional Network
Networking is crucial for career growth, as it opens up opportunities for collaboration, mentorship, and job prospects.
What Role Do Unions Play in the Labor Market?
The Origins of the Union Movement
The union movement originated as a response to industrialization, aiming to protect workers' rights and improve working conditions.
The Golden Age of Labor Unions
This period marked the peak influence of unions in shaping labor policies and advocating for workers' benefits.
The Modern Union Movement
Today's union movement focuses on adapting to the changing labor market, addressing modern workforce challenges.
Bread-and-Butter Unionism Today: Wages, Benefits, and Job Security
Contemporary unions primarily concentrate on fundamental issues such as fair wages, comprehensive benefits, and job security for their members.