Investing in Yourself - Your Career

Think back to the Economics module. In this module, you learned about the four factors of production. People, or labor are a valuable resource in a free market economy. That is where you come in. Your knowledge, skills, and abilities make you valuable. The more knowledge, skills, and abilities you have and use in your career, the more valuable you become to an employer and to our economy. In addition, you are likely to make more money in your chosen career field. Studies have consistently shown that people who continue their education earn more than people with less education. You can gain more skills and abilities by educating yourself and gaining more experience.

As you can see by this graph from the Bureau of Labor Statistics, higher levels of education result in higher median income levels and lower unemployment rates. It is important to note that there are no careers specifically listed on the graph. All of the income information relates directly to education level, not career choice. What does that mean? It means that, regardless of the career you choose, the more education you receive, the more money you can potentially make.

In The Bigger Picture - National and Global Economics module, you learned about human capital and productivity. Human capital is the knowledge and skills a person possesses. When people improve their knowledge and skills, through education and experience, they increase their value to the market economy. In other words, their market value increases. Market value is the price a seller can expect to receive for a product in a competitive marketplace. What this means to you is that when your market value increases with more knowledge and skills, you can demand a higher wage or salary for your labor. A wage or salary is the price of labor. Market value and wages are determined mostly by the supply and demand for a resource. So, when you have more skills and abilities, you become more valuable to employers, which increases your market value and your wages. Employers want employees with many skills and abilities, that is the demand part of the equation. By investing in yourself and increasing your knowledge base, you can supply employers with what they want. By meeting this demand, you can earn more money in your chosen career field.

Let’s look at an example of how supply and demand for a good or service affects the demand for the resources needed to produce that good or service. An increase in the demand for new homes will increase the demand for carpenters. The increase in demand for carpenters will probably lead to an increase in the income of carpenters. If the demand for new homes decreases, then the demand for skilled carpenters also decreases. This decrease in demand could lead to excess supply (many unsold new homes on the market). This also decreases the demand for carpenters. When supply is limited and demand is high, companies will pay more for the product – skilled labor. However, jobs that can be performed by unskilled labor generally pay lower wages because many people can qualify for that work. Employers do not have to pay more to attract these workers. What does this tell you? It should indicate to you that you need to find a career that is in demand. Where can you find out about careers that are growing and in demand?

Studies have also shown that people with more skills and abilities are more productive. Remember, from the second economics module that increased productivity leads to a higher standard of living because you can earn more money. Increased productivity also benefits employers because employees are able to produce more goods and services at a lower cost. Increased productivity simply means producing more in the same amount of time, which tends to lower the cost of production. When you have more knowledge and skills, you are able to get more done in a shorter period of time which increases your productivity and your value to the employer.

How can you increase your market value and your wages? It is simple – invest in your own human capital! Does that mean you have to go to college and get a four-year degree? Not necessarily. Although studies show that people with college education do earn more, there are other ways to increase your knowledge and skills. While you are in high school, you should take the opportunity to take a variety of courses. If you take a cooking class and find out that you really don’t enjoy cooking (or aren’t very good at it), that is valuable to your career search. You know you don’t want to become a chef. In order to gain experience and experiment with different career paths, you can volunteer at organizations in your field of interest. If you enjoy working with animals and feel that you may want to become a veterinarian, you can volunteer at the local animal shelter. Volunteering is a great way to make contacts with people who are already working in your field of interest.You can also look for an internship. An internship is a pre-professional work experience that can provide a student, recent graduate, or career changer with the opportunity to gain experience in a particular career field. An internship is a way to “try out” a job without making a permanent commitment. Internships can be paid or unpaid. You may also be able to get college credit for an internship. Be sure to get all the necessary information about an internship before you agree to begin working.

Another option for a person who wants to gain human capital but doesn’t want to go to college is an apprenticeship. An apprenticeship is a combination of classroom instruction and on-the-job training. With this option, you get paid while you learn about the career. Classes for an apprenticeship are usually career specific and don’t require the general education courses that college degree programs require.

Careers

The career choices you make will greatly affect your future income. Likewise, your decision about whether or not to seek additional education or training will greatly affect your earning potential. Although selecting a career because of the potential income may seem like a good idea, studies show that having a satisfying career is more important than extra money once you earn enough to meet your basic survival needs. If you love what you do, you are much more likely to do well in your career field, and you will be more likely to pursue the skills and abilities that will make you more valuable in your chosen profession. Take a look at this presentation to learn more about finding a career that is right for you.

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Career Tools and Tidbits

In this interactivity, you will learn how to create a cover letter, résumé, and follow-up letter. It will additionally help you prepare for an interview. Get started building the tools that you will need to find your desired position. Click the player button to begin.

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