Economics for Leaders Lesson 5 Labor Markets Economics

Economics for Leaders Lesson 5: Labor Markets Economics for Leaders

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. Economics for Leaders

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. Economics for Leaders

Please use the slides before this one in your presentation. The slides following this one are provided as options. Economics for Leaders

Economics for Leaders

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. Economics for Leaders

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. ” Economics for Leaders

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 Economics for Leaders assistants

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 Economics for Leaders

10 Industries w/ Largest wage & Salary Employment Growth, 2006 -2016 Industry Management, sci. , and tech. consulting services Employment services Gen. med. & surg. hosp. , pubic & private El & sec schools, public & private Local government, excluding education and hospitals Offices of physicians Limited-service eating places Colleges, universities, and professional schools, public and private Computer systems design and related services Home health care services Economics for Leaders % Change 77. 9 18. 9 13. 9 7. 6 10. 9 24. 8 13. 2 14. 5 38. 3 55. 4

10 Industries w/ Largest wage & Salary Employment Declines, 20062016 Industry Change Gasoline stations Printing & related support activities -21. 8 Motor vehicle parts manufacturing -21. 1 Department stores Cut & sew apparel manufacturing -58. 4 Wired telecommunications carriers -20. 8 Crop production (primary job) -18. 2 Economics for Leaders % -16. 9 - 7. 3