Social Problems

Work and Unemployment

Overview

Modern economy originates with the information revolution and post-industrial economy

- a productive system based on service work and information technology

- began in 1950s

Character of work changed: From tangible products to ideas From mechanical skills to literacy skills From factories to almost anywhere

Economic Systems

Capitalism Private ownership of property Pursuit of personal profit Competition and consumer choice

Welfare capitalism combines a mostly market-based economy with extensive social welfare programs

Economic Systems (cont.)

Socialism1. Collective ownership of property2. Pursuit of collective goals3. Government control of economy

Communism: a hypothetical economic and political system in which members are socially equal

Capitalism vs. Socialism

Economic productivity: capitalism out produces socialism 2.7:1.

Economic equality: socialist economies create less income disparity but offer a lower overall standard of living.

Personal freedom: capitalism has freedom to act and socialism has freedom from want.

The Global Economy

The global economy expands economic activity that crosses national borders

Consequences: Global division of labour Products pass through several nations National governments have less control Small number of businesses control a vast

share of the market Concerns about the rights and opportunities

of workers are raised

Other consequences

The world's countries are becoming specialized.

Governments can no longer fully control the economic activity that takes place within their borders.

A small number of businesses control a vast share of the world's economic activities.

New Technology and the Workplace

How computers change the workplace: “Deskilling” of labour: Machines make some

some workers and managers obsolete Making work more abstract: Understanding

rather than doing is key Limiting workspace interaction Enhance employer’s control of workers Allow relocation of work: call centres

Economic Sectors

Primary: part that draws raw materials from the natural environment

Secondary: part that transforms raw materials into manufactured goods

Tertiary: part that generates services “Social reproduction sector”: unpaid

labour

Changes in Economic Sectors

Dual Labour Market

Primary labour market: occupations that provide extensive benefits to workers, e.g., white collar professions and upper management

Secondary labour market: jobs that provide minimal benefits to workers, e.g., low-skill service and blue-collar work

“Reserve army of labour”: those last hired in expansion and first fired with contraction

Labour Force Participation in the Canadian Post-Industrial Economy

In 2008, 18.2 million people in the labour force but by Feb. 2009, down to 16.9%

73% of men and 63% of women aged 15+ are in the labour force

Approximately 4% are in agricultural work Approximately 75% of the labour force is in

the service sector, but much service work pays much less than former factory jobs

Types of Employment

Professions: require extensive education and training – “white collar work” Paraprofessionals: have skills but lack theoretical

knowledge Unionized work: 1/3 of labour force

Some is “blue collar” work but highest level is in public administration (i.e. teachers)

Self- and Underemployment

Self-employment: earning a living without working for a large organization.

Includes professionals, farmers, trades people, and home businesses

Approximately 15% of labour forceUnderemployment uses less than one’s full

talents or abilities 50% of university grads are in jobs that do

not require these credentials. But, level of education is a predictor of

employment

Underground Economy

Economic activity involving income or the exchange of goods and services that is not reported to the government as required by law, e.g., baby-sitting, garage sales, and illegal activity

15-20 percent of economic activity Statistics Canada suggests 3.5 percent of

GDP Increased with imposition of GST

Bureaucratization

Predicted and described by Max Weber Based on rational-legal authority structure Ideal bureaucracy has Christmas tree shape Downward chain of command and upward

information flow Tall (hierarchical) vs. flat (more democratic

and productive) bureaucratic structures

Structural Functionalist Perspective on Work and Unemployment

One of most basic social institutions Provides social interaction, social solidarity

and cohesion in society Stratification and hierarchy in workforce both

natural and normal Unemployment is a dysfunction

Conflict and Feminist Perspective

Source of class conflict Bourgeoisie want more labour for less money

and proletariat want more pay for less work An inherent contradiction in capitalism

system Workforce is patriarchal: women make less Problem of the “reserve army of labour”

Unemployment keeps wages low Women are exploited for their unpaid labour

Symbolic Interactionist and Social Constructionist Views

Work is a major source of identity Also source of status and recognition Social Constructionist: The workforce, work

relations, and how people think about work constantly evolving

Social Problems Linked to Work and Unemployment

Gender discrimination Racial and ethnic discrimination Inequality Work-family problems Alienation

Vulnerable Populations

Sex workers Child labourers

Unemployment

Discriminatory unemployment Due to discrimination because of ethnicity or

gender Structural unemployment

Due to socio-economic factors

Unemployment (cont.)

Unemployed increases with “downsizing” esp. during a recession

Rarely below 5% Official statistics understate it (only a % of those still

“actively seeking work”) Does not include “discouraged workers” Does not count part-time work Some part-time work is involuntary Higher for visible minorities and Native men and

women Higher for younger men and women

Unemployment Rates In Canada, official unemployment rate on

Mar. 13 was 7.7% U.S. was 8.1% TD predicts will be 10% by end of the year “There is no doubt that 2009 will go down in

history as one of the most difficult economic years for Canadians” (Beata Caranci, TD's director of economic forecasting)

Globally, a new forecast by the U.N. predicts that more than 198 million people will be unemployed in 2009

Work-related Health Problems

Workplace safety Work stress Job insecurity Exploitation

Health Consequences of Unemployment

Mortality Substance Abuse Depression and Anxiety Increased smoking rate and higher obesity Increased risk of violence (esp. domestic) Other effects

Spousal effects Effects on children

Solutions?

Tepperman suggests more job training and education programs at the societal level and therapy (for discouraged workers) and networking at individual level.

However, when unemployment is structural and global, then structural changes are needed

For instance, U.N's Food and Agriculture Organization (FAO) suggests “ten million [green] jobs could be created by investing in restoring degraded forests, planting new trees, building forest trails and recreation areas” (reuters.com, March 10 2009)

Or….

An example of a revolution promoting democratic structural change

The take (2004) Avi Lewis and Naomi Klein Produced by Barna-Alper productions and Klein

Lewis Productions with the NFB and CBC A video on the effects of economic collapse and

globalization on work (and unemployment) in Argentina in 2001