Transcript Slide 1

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.
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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.
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Please use the slides before this one
in your presentation.
The slides following this one are
provided as options.
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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.
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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.”
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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
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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
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10 Industries w/ Largest wage & Salary
Employment Growth, 2006-2016
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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
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% 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
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%
-16.9
- 7.3
Technology & Productivity
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Superstars!
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$647 Million
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Sweatshops
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Where Will They Go?
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20% or +
15-19.9%
10 –14.9%
5-9.9%
4.9% or -
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Source: U.S. Dept. of Labor, BLS
Minimum Wage
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Child Labor Laws
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