PINKLE C.

DATAY
BSBA 2B
1.EMPLOYMENT
is a relationship between two parties, usually based on a contract where work is paid
for, where one party, which may be a corporation, for profit, not-for-profit
organization, co-operative or other entity is the employer and the other is the
employee.[1] Employees work in return for payment, which may be in the form of an
hourly wage, by piecework or an annual salary, depending on the type of work an
employee does and/or which sector she or he is working in. Employees in some fields
or sectors may receive gratuities, bonus payments or stock options. In some types of
employment, employees may receive benefits in addition to payment. Benefits can
include health insurance, housing, disability insurance or use of a gym. Employment
is typically governed by employment laws or regulations and/or legal contracts.
2.LABOR FORCE
The total number of people employed or seeking employment in a country or region.
also called work force.
3.TYPES OF UNEMPLOYMENT
*Voluntary versus Involuntary Unemployment
At a very basic level, unemployment can be broken down into voluntary
unemployment unemployment due to people willingly leaving previous jobs and
and now looking for new ones and involuntary unemployment unemployment
due to people getting laid off or fired from their previous jobs and needing to find
work elsewhere. (Note, however, that people who leave jobs and don't look for new
ones are not considered unemployed.) Not surprisingly, economists generally view
involuntary unemployment as a larger problem than voluntary unemployment since
voluntary unemployment likely reflects utility-maximizing household choices.
*Frictional Unemployment
The easiest type of unemployment to explain is known as frictional unemployment.
Frictional unemployment is unemployment that occurs because it takes workers some
time to move from one job to another. While it may be the case that some workers
find new jobs before they leave their old ones, a lot of workers leave or lose their jobs
before they have other work lined up. In these cases, a worker must look around for a
job that it is a good fit for her, and this process takes some time. During this time, the
individual is considered to be unemployed, but unemployment due to frictional
unemployment is usually thought to last only short periods of time and not be
specifically problematic from an economic standpoint. This is particularly true now
that technology is helping both workers and companies make the job search process
more efficient.
Frictional unemployment can also occur when students move into the work force for
the first time, when an individual moves to a new city and needs to find work, and
when women re-enter the work force after having children. (Note in the last case,
however, that maternity leave doesn't count as unemployment!)

*Cyclical Unemployment
It's probably not surprising that unemployment is higher during recessions and
depressions and lower during periods of high economic growth. Because of this,
economists have coined the term cyclical unemployment to describe the
unemployment associated with business cycles occurring in the economy. Cyclical
unemployment occurs during recessions because, when demand for goods and
services in an economy falls, some companies respond by cutting production and
laying off workers rather than by reducing wages and prices. (Wages and prices of this
sort are referred to as "sticky.") When this happens, there are more workers in an
economy than there are available jobs, and unemployment must result.
As an economy recovers from a recession or depression, cyclical unemployment tends
to naturally disappear. As a result, economists usually focus on addressing the root
causes of the economic downturns themselves rather than think directly about how to
correct cyclical unemployment in and of itself.
*Structural Unemployment
There are a couple of ways to think about structural unemployment. One way is that
structural unemployment occurs because some labor markets have more workers than
there are jobs available, and for some reason, wages don't decrease to bring the
markets into equilibrium. (This could be because efficiency wages are being paid in
an industry, for example.) Another way to think about structural unemployment is that
structural unemployment results when workers possess skills that aren't in high
demand in the marketplace and lack skills that are in high demand. In other words,
structural unemployment results when there is a mismatch with workers' skills and
employers' needs. Structural unemployment is thought to be a pretty significant
problem, mainly because structural unemployment tends to be largely of the longterm variety and retraining workers is not a cheap or easy task.
Seasonal unemployment is, not surprisingly, unemployment that occurs because the
demand for some workers varies widely over the course of the year. (Pool lifeguards,
for example, probably experience a decent amount of seasonal unemployment.)
Seasonal unemployment can be thought of as a form of structural unemployment,
mainly because the skills of the seasonal employees are not needed in certain labor
markets for at least some part of the year. That said, seasonal unemployment is
viewed as less problematic than regular structural unemployment, mainly because the
demand for seasonal skills hasn't gone away forever and resurfaces in a fairly
predictable pattern.
4.BACKWARD BENDING CURVE
In economics, a backward-bending supply curve of labour, or backward-bending
labour supply curve, is a graphical device showing a situation in which as real, or
inflation-corrected, wages increase beyond a certain level, people will substitute
leisure (non-paid time) for paid worktime and so higher wages lead to an increase in
the labour supply and so less labour-time being offered for sale.[1]
The "labour-leisure" tradeoff is the tradeoff faced by wage-earning human beings
between the amount of time spent engaged in wage-paying work (assumed to be
unpleasant) and satisfaction-generating unpaid time, which allows participation in
"leisure" activities and the use of time to do necessary self-maintenance, such as
sleep. The key to the tradeoff is a comparison between the wage received from each
hour of working and the amount of satisfaction generated by the use of unpaid time.

Such a comparison generally means that a higher wage entices people to spend more
time working for pay; the substitution effect implies a positively sloped labour supply
curve. However, the backward-bending labour supply curve occurs when an even
higher wage actually entices people to work less and consume more leisure or unpaid
time
5.PHILIPS CURVE
The Phillips curve represents the relationship between the rate of inflation and the
unemployment rate. Although he had precursors, A. W. H. Phillipss study of wage
inflation and unemployment in the United Kingdom from 1861 to 1957 is a milestone
in the development of macroeconomics. Phillips found a consistent inverse
relationship: when unemployment was high, wages increased slowly; when
unemployment was low, wages rose rapidly.
Phillips conjectured that the lower the unemployment rate, the tighter the labor market
and, therefore, the faster firms must raise wages to attract scarce labor. At higher rates
of unemployment, the pressure abated. Phillipss curve represented the average
relationship between unemployment and wage behavior over the business cycle. It
showed the rate of wage inflation that would result if a particular level of
unemployment persisted for some time.
3 MAJOR LABOR ISSUES
Hiring, retention, firing, and references Employers cannot indulge in nepotism when
it comes to hiring or firing decisions. All decisions should be recorded and documents
related to hiring, retaining or terminating the services of any employee should be
maintained.
Discrimination and harassment laws Federal and state laws on discrimination and
harassment are applicable to all employers. Federal laws are applicable to firms which
have 15 or more employees. State laws are applicable to firms with less than 15
employees.