The Economy and Work: From Industrial to Post-Industrial Revolution

1. Ch. 16 The Economy and Work

2. Overview Modern economy originates with the information revolution andpost-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

3. What is the Economy? The social institution that organizes the production, distribution, and consumption of goods and services • Goods are commodities ranging from necessities to luxury items • Services are activities that benefit others

4. Sectors of the Economy • Primary: part of the economy that draws raw materials from the natural environment • Secondary: part of the economy that transforms raw materials into manufactured goods • Tertiary: part of the economy that involve services rather than goods • “Social reproduction sector”: unpaid labour

6. The Global Economy 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

7. 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.

8. Economic Systems Capitalism: • Private ownership of property • Pursuit of personal profit • Competition and consumer choice Welfare capitalism: a mostly market-based economy with extensive social welfare programs State Capitalism: An economic and political system in which companies are privately owned but co-operate closely with the government

9. Economic Systems (cont.) Socialism • Collective ownership of property • Pursuit of collective goals • Government control of economy Communism: a hypothetical economic and political system in which members are socially equal

10. Capitalism vs. Socialism • Economic productivity: capitalism out produces socialism by 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. • Debunked: “Socialism has Never Worked” (David Pakman Show, 2017)

11. 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

12. Automation(CBC News, 2017)

13. Labour Force Participation in the Canadian Post-Industrial Economy • In February 2018, 18.6 million people in the Canadian labour force • Employment up in health care and social assistance. • down in wholesale and retail trade, and manufacturing. • 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 service work pays much less than former factory jobs

14. Statistics Canada Definitions • The employment rate is the number of employed people as a percentage of the population aged 15+. • The unemployment rate is the number of unemployed people as a percentage of the labour force (employed and unemployed). • The participation rate is the number of employed and unemployed people as a percentage of the population. • Full-time employment consists of persons who usually work >30 hours per week at their main or only job. • Part-time employment consists of persons who usually work <30 hours per week at their main or only job.

15. Employment Rate 2013 - 2018Statistics Canada the Daily

16. Current Employment Statistics • Unemployment rate: 5.8 % • Employment rate: 61.7 % • Labour force participation rate: 65.5 % • Number unemployed: 1,144,300 • Number working: 18,572,500 • Youth (15-24 years) unemployment rate: 11.1 % • Men (25 plus) unemployment rate: 5.1 % • Women (25 plus) unemployment rate: 4.8 %

17. 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

18. 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)

19. 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 force Underemployment uses less than one’s full talents or abilities • 50% of university grads are in jobs that do not require these credentials. • Level of education is a predictor of employment

20. 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 • Has increased with imposition of GST

21. Labour Unions Worker organizations that seek to improve wages and working conditions through various strategies including negotiations and strikes • One-third of workforce is unionized • Highest level is in public administration • Now unions face new challenges of providing security to workers

22. Corporations An organization with a legal existence including rights and liabilities apart from that of its members • Most large corporations in Canada are public (thousands of shareholders) • Most corporations are small, but many large corporations dominate markets • Foreign investment is reviewed, but integration is occurring • Mega corporations and multinationals dominate the global economy

23. Mega Corporations • The world’s top 10 corporations – including Walmart, Shell and Apple – had a combined revenue of more than the 180 ‘poorest’ countries combined (includes Ireland, Indonesia, Israel, Colombia, Greece, South Africa, Iraq and Vietnam) in 2015 • 69 of top 100 economic entities globally are not countries, but corporations • Walmart, Apple, Shell richer than Russia, Belgium, Sweden • Source: Global Justice Now 2016 • Click here for full Global Justice list

24. Social Problems Linked to Work • Gender, racial and ethnic discrimination • Inequality • Work-family problems • Alienation • Vulnerable populations are at risk • Sex workers • Child labour, esp. on farms a “hidden crisis” • Varies by province. Ontario minimum age is 14. • <14 only outside of school hours. >16, hours not limited

25. Unemployment and Social Problems • Discriminatory unemployment: ethnicity, gender • Structural unemployment: socio-economic factors • New problem linked to gendered employment: • Canada in the past few years, has lost nearly 70,000 jobs in the manufacturing and agriculture sectors • At same time, service jobs have increased • Greatest impact on men because not prepared to enter into traditional female fields or work for lower pay • Unemployment for young men increasing

26. Source: 'Problem for an entire gender‘ (CBC News Feb. 8, 2017)

27. Unemployment (cont.) Unemployed increases with “downsizing” esp. in recession • February 2018 is 5.8%. Rarely below 5%. • Most recent job gains were in part time work (54, 700 vs. 39,300 in full time work.) • Official statistics* understate it (indicates only a % of those people who are still “actively seeking work”) • Does not include “discouraged workers”* • Does not count part-time work* • Some part-time work is involuntary • Unemployment higher for visible minorities and Aboriginals and for younger men and women

28. Unemployment Rates 1966-2018

29. Selective Comparison: Unemployment by Country (Trading Economics) • Greece 20.9 • Spain 16.6 • Brazil 12.2 • Italy 11.1 • Canada 5.8 • Russia 5.2 • United Kingdom 4.4 • United States 4.1 • China 3.9 • Germany 3.6 • Mexico 3.4 • Japan 2.4

30. Work and Unemployment Related Health Consequences

31. Structural Functionalist Perspective on Work • 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

32. Conflict and Feminist Perspective • Source of class conflict • Bourgeoisie want more labour for less money and proletariat want more pay for less work • Problem of the “reserve army of labour” • Unemployment keeps wages low • Women are exploited for their unpaid labour

33. 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

34. Do we need to rethink professional work in Canada? • Business model for law firms in Canada does not reflect changes in workforce or economy • In the past 20 years, women have been entering and then leaving law “in droves” (Huffington Post 2005) • Although approx 50% of law school students are women, less than 20% make partnership • Studies from 1993, 2005, 2008, and more recently a new study by Catalyst of 1400 lawyers at 10 top Canadian law firms notes that both men and women lawyers desire a better work-life balance

35. Rethinking work: what can we do? • Women and men report the top factors as important: • “…an environment more supportive of family and personal commitments and more control over work schedules.” • 84% of women and 66% of men wanted “an environment supportive of my family and personal commitments” • “..men and women associates, both junior and senior, cite work-life balance factors as important in choosing to work at another firm than other factors.” • A majority of women (66 %) and more than one-half of men associates (54 percent) said fewer hours. • (from Catalyst report)

36. The Post-Work Movement • Some theorists are predicting that with increasing automation, we may one day have a world without work and “that life with much less work, or no work at all, would be calmer, more equal, more communal, more pleasurable, more thoughtful, more politically engaged, more fulfilled” and that “the absence of work would produce a richer culture.” • Governments could pay all citizens a universal basic income (UBI) • Read: Post-Work: the Radical Idea of a World Without Jobs (Andy Becket, 2018)