U.S. Labor Market Flashcards
Labor Market
The labor market, also known as the job market, refers to the supply and demand for labor in which employees provide the supply and employers the demand. It is a major component of any economy and is intricately tied in with markets for capital, goods, and services. The labor market in the United States can be divided into two segments - the primary and the secondary. Both of these markets offer a set of social mechanisms through which labor is bought and sold, yet there are definite distinctions between the two.
U.S. Labor Market - Primary Labor Market
The primary labor market is a market that generally consists of high-wage paying jobs, social security, and longer-lasting careers, but others define it as jobs that require formal education, but in addition to white collar jobs like teaching, accounting, and the law, it also includes the skilled trades like being a plumber or a photocopy repair technician. It is contrasted by the secondary labor market, which usually consists of low-wage paying jobs, limited mobility within jobs, and temporary careers. The primary and secondary labor markets are intended for division of the standard of jobs within labor (heavy work) services.
U.S. Labor Market - Secondary Labor Market
The secondary labor market is the labor market consisting of high-turnover, low-pay, and usually part-time or temporary work. Sometimes, secondary jobs are performed by high school or college students. The majority of service sector, light manufacturing, and retail jobs are considered secondary labor. Secondary market jobs are sometimes referred to as “food and filth” jobs, a reference to workers in fast food, retail, or yard work, for example. A secondary-market job is distinct from a “secondary worker”. The latter term refers to someone in a family (traditionally, the wife, or a child) who earns a smaller income than the “breadwinner” in order to supplement family income.
U.S. Labor Market - Primary Barriers into Primary Labor Market
(1.) There are fewer entry-level positions in the primary labor market due to corporate downsizing and plant shutdowns. It is difficult to break into a primary labor market without already possessing skills and education. (2.) Workers in the secondary labor market are less connected to networks that could contribute to them finding a job in the primary market. According to the U.S. Bureau of Labor Statistics, 70% of all jobs are found through informal networks. If individuals in the secondary labor market do not have connections, it’s unlikely they will break into the primary labor market. (3.) Workers in the secondary labor market usually lack the education, training, and/or certifications they need for jobs in the primary labor market, but because of their low pay and lack of free time, education and further training are hard to acquire.
Characteristics of a Profession
The term profession means an occupation that generally requires some specialized or higher degree of education and training. A profession is more of a calling than a job, and the term implies that if someone chooses a particular profession, they must have a deep passion for the knowledge of that particular area and a range of skills toward that area. Sociologists have established characteristics for what it means to be a profession. Characteristics of a Profession: - A profession demands specialized knowledge and continued training of its members. - A profession also provides a critical social service. - A profession has a clearly defined membership of a particular group, usually in the form of a professional organization, with a view to safeguarding the interests of the profession, which involves a code of ethics. - A profession is loyal to society. - A profession assures its members with a professional career.
The Seven Economic Goals of the U.S.
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment.
The Seven Economic Goals of the U.S. - Stability
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment. Stability in prices is a goal of the U.S. economy and is measured primarily by whether there is inflation or deflation.
The Seven Economic Goals of the U.S. - Security
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment. You’ve probably heard of Social Security benefits, which include money older adults receive after a certain age. These benefits are one way of protecting those beyond the average working age and those with disabilities from living in extreme poverty.
Federal Deposit Insurance Corporation (FDIC)
Federal Deposit Insurance Corporation (FDIC), was created in 1933, at a time when banks had been failing right and left. With this program in place, if your bank suddenly goes out of business, there is an insurance policy that will make sure you don’t lose your money.
The Seven Economic Goals of the U.S. - Economic Freedom
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment. Freedom is a value of our economic system that puts emphasis on the rights of individuals and businesses to decide how to use their own funds.
The Seven Economic Goals of the U.S. - Equity
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment. In the context of U.S. economic goals, equity refers to the fair distribution of resources in the economy. For instance, when you pay your taxes, some of your money is going toward paying for services everyone can use, like schools and libraries. Even though we value the economic freedom of people determining how to use their own money, we also value giving many people equal access to education, which relates to the goal of equity.
The Seven Economic Goals of the U.S. - Economic Growth
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment. Calculations of the GDP, or gross domestic product, can be used to keep tabs on economic growth. The GDP is the value of everything produced during a specific period of time. This includes goods, such as milk, computers, or bungee cords, as well as services, like work done on a car or medical care provided.
The Seven Economic Goals of the U.S. - Efficiency
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment. To give you a taste for what is meant by efficiency, think about how a new technology, like the invention of assembly lines, helped industries produce more products, more quickly. Wisely using resources and avoiding wasting them, are also values related to efficiency.
The Seven Economic Goals of the U.S. - Full Employment
The broad goals viewed as central to the U.S. economy are stability, security, economic freedom, equity, economic growth, efficiency, and full employment. Note that while full employment sounds like it would be 0% unemployment, this is actually not the goal set for the economy. An unemployment rate of about 5% gives some wiggle room for those who are just entering the economy, like students leaving school, and who haven’t found a job yet.
Global Market
The global market is a dynamic place where participants include global companies that operate all over the world, mature developed economies, and emerging markets. Countries with both mature and emerging markets engage in different levels of economic integration, from trade treaties all the way up to economic unions.
Global Market - Emerging Market
An economically developing country transitioning into an economically developed country is considered to be an emerging market. Emerging markets demonstrate rapid economic growth, relative stability, a good infrastructure, and a legal and regulatory system supportive of a market economy and trade.
Global Market - Outsourcing
Outsourcing occurs when a company contracts with another company to provide goods or services that are traditionally done in-house.
Global Market - Economic Integration
Economic integration is an agreement between two or more countries to reduce or eliminate economic barriers to trade and commerce between their countries.
Global Market - Economic Integration - Trade Agreements
Trade agreements are treaties that govern trade between treaty signatories, such as free-trade areas, custom unions, common markets, and economic unions.
Global Market - Economic Integration - Free-Trade Area
Free-trade areas are where there are no tariffs or other trade barriers between member states, but the barriers are kept against non-members. Compared to a custom union, common market, and economic union, this is the least integrated.
