Labor Market

• The Labor Market refers to the supply and demand for labor, or jobs.

• Just like any other market, consumers and producers trade according to supply and demand

• Supply (Or Producers): The Workers / Employees

• Demand (Or Consumers): The Companies / Bosses

Why do we have a Labor Market?

• In any economy, labor is important because labor is what gets anything done.

• The Labor Market tries to balance different categories, industries, and skill levels of different jobs in the US economy.

• Today, we will learn about these categories, industries, skill levels, etc that define different types of jobs.

Definition of Industry

An “Industry” is a group of companies or section of the economy that is related based on their primary goods or services.

There are also different way to group industries.

​US Industries

​US Industries

​US Industries by State

Industries Change Over Time

How industries change over time is important to think about when thinking of careers.

Some industries have declined a lot - Agriculture used to be a majority of the US economy, but is now less than 10%.

Other industries are created and grow - the tech industry has grown over the past 10-20 years, and the energy industry is also growing.

Move Seats!

Group Discussions:

Each person in the group should share - what job they want and why?




5 min.

Class Discussions:

Did everyone in the same industry have the same job?

Job Skill Levels

Another useful way to categorize jobs is by their skill level.

Skill level generally refers to how much specific education, certification, or training is needed to do a job.

Can we think of types of jobs that fit each of these categories?

What are some pros and cons to having an unskilled or semi-skills career?
What are some pros and cons to having a skilled / professional career?

Job Skill Levels - Education

Education refers to formal schooling, ranging from high school to college.

Different jobs and careers will require different levels of school education.

The most basic level of education is high school / GED.

College is usually divided into Associate’s, Bachelor’s, and Master’s degrees.

Some careers will require further education (Doctoral degree). (PhD, EdD, MD, JD)

Job Skill Levels - Certification and Licenses

Certification refers to training programs and tests that are outside of formal schooling.

There are many different types of certifications, and some careers require certificates, while certificates may just be recommended.

Licenses are usually issues by a government or agency, and are required for certain careers.

For example, an Attorney (Lawyer) in California needs a State Bar License. This involves having the required education and passing the Bar exam.

Even Barbers and Beauty Workers (e.g. Nail Salon) each need to get a California Cosmetology License.

Job Skill Levels - Training

• How much on-the-job training is needed?

• On-the-job training means training that is done after you have accepted a job.

• For example, a restaurant chef might have on-the-job training for their first 1-2 weeks. They might shadow the other chefs to learn recipes, techniques, and how the specific restaurant operates.