Labor Market Overview: Trends, Figures, and Equilibrium

Topic 1. Chapter 2 Overview of Labor Market

Figure 2.1: Labor Force Status of the U.S. Adult Civilian Population, April 2007

Table 2.1: Labor Force Participation Rates by Gender, 1950-2007

Figure 2.2: Unemployment Rates for the Civilian Labor Force, 1946-2006

Figure 2.3: Employment Distribution by Major Nonfarm Sector, 1954-2007(detailed data in table on next slide)

Figure 2.4: Relationship between Wages, Earnings, Compensation and Income

Table 2.2: Nominal and Real Hourly Earnings, U.S. Nonsupervisory Workers in the Private Sector, 1980-2006

Figure 2.5: The Markets in which Firms Must Operate

Table 2.3: Labor Demand Schedule for a Hypothetical Industry

Figure 2.6: Labor Demand Curve (based on Table 2.3)

Figure 2.7: Shift in Demand for Labor Due to Increase in Product Demand

Figure 2.8: Possible Shifts in Demand for Labor Due to Fall in Capital Prices

Figure 2.9: Market Supply Curve for Paralegals

Figure 2.10: Shift in Market SupplyCurve for Paralegals as Salaries of Insurance Agents Rise

Figure 2.11: Supply of Paralegals to a Firm at Alternative Market Wages

Figure 2.13: Demand and Supply at the “Market” and “Firm” Levels

Figure 2.12: Market Demand and Supply

Figure 2.14: New Labor Market Equilibrium after Demand Shifts Right

Figure 2.15: New Labor Market Equilibrium after Supply Shifts Left

Figure 2.16: New Labor Market Equilibrium after Supply Shifts Right

Figure 2.17: Effects of an Above-Market Wage

Figure 2.18: Effects of a Below-Equilibrium Wage

Figure 2.19: Labor Supply to the Military: Different Preferences ImplyDifferent “Rents”

Labor Market Overview: Trends, Figures, and Equilibrium