5-1

Business in the
U.S. Economy

Goal 1 Describe the changing status of

U.S. employment.
Goal 2 Discuss the role of business in the
U.S. economy.
Goal 3 Describe three major types of
businesses.
2012 Cengage Learning. All Rights Reserved.

SLIDE 1

THE CHANGING
U.S. JOB MARKET

C H AP T E R

SLIDE 2

Employment data competition for jobs!

After 9-11 a recession resulted in a loss of jobs from 2001-2003

Jobs grew by 6% from 2003-2008
Recession again in 2009
2011 baby boomers started retiring (1946-1964)
By 2020, average worker will be over 50, but at the same time 20-30
year old age group will grow faster than the overall labor force for the
first time in 25 years.
Add to that Asian, Hispanic, and African American workers growing at a
higher rate of employment
1960s 35% of women worked, by 2000 70%!

2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e

C H AP T E R

SLIDE 3

Pressures on employees
Technology does not allow fewer hours, why?
More contact, faster information, taking work home

Companies have downsized (streamlined) and require

more of employees
Results: 7 of 10 parents felt they were not able to
spend enough time with their kids
Many people have second jobs to supplement their
incomes
contingent workers

2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e

C H AP T E R

SLIDE 4

Checkpoint
List several groups that will increase as
a percentage of the total U.S. workforce
in the next decade.
Younger workers (1624 years of age)
Asian-, Hispanic-, African-American groups
Women

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Principles of Business, 8e

BUSINESS AND
THE ECONOMY

C H AP T E R

SLIDE 5

Size of U.S. businesses

P.101

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Principles of Business, 8e

PERCENT OF BUSINESSES
BY EMPLOYEE SIZE

2012 Cengage Learning. All Rights Reserved.

C H AP T E R

SLIDE 6

Principles of Business, 8e

C H AP T E R

SLIDE 7

Roles of business
Most important role is to make and distribute
products and services needed by consumers,
government, and other businesses
Provide employment = $$$ to spend
Pay taxes = money to use for citizens

2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e

C H AP T E R

SLIDE 8

Impact on a community
New business means new money in a
community that was not there before
When large business opens in an area, other
businesses often locate there to support the
larger business
Successful businesses contribute to more
jobs, more income, and a thriving local
economy where they operate.
2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e

C H AP T E R

BUSINESS ACTIVITIES

SLIDE 9

Generating ideas
Raising capital
Employing and training personnel
Buying goods and services
Marketing goods and services
Maintaining business records

2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e

C H AP T E R

SLIDE 10

Checkpoint
What are the basic activities completed
by all businesses?
Generating ideas
Raising capital
Employing and training personnel
Buying goods and services
Marketing goods and services
Maintaining business records
2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e

C H AP T E R

SLIDE 11

TYPES OF BUSINESSES

Producers create products and services used

by individuals and other businesses
Locally?

Intermediaries sell the goods and services of

producers to consumers and other businesses
Locally?

Service businesses carry out activities that are

consumed by its customers the fastest
growing part of the economy.
Locally?

2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e

C H AP T E R

SLIDE 12

Checkpoint
How does a manufacturer differ from an
extractor?
An extractor takes natural resources, such
as oil or timber, for direct consumption or
for use in developing other products.
A manufacturer takes resources supplied
by others and converts them into useable
products.
2012 Cengage Learning. All Rights Reserved.

Principles of Business, 8e