1. Social Problems
Work and Unemployment

2. 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

3. 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

4. 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

5. 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.

6. 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

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. 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

9. 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

10. Changes in Economic Sectors

11. 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

12. 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

13. 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)

14. 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.
But, level of education is a predictor of employment

15. 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

16. 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

17. 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

18. 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

19. 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

20. Social Problems Linked to Work and Unemployment
Gender discrimination
Racial and ethnic discrimination
Inequality
Work-family problems
Alienation

21. Vulnerable Populations
Sex workers
Child labourers

22. Unemployment Discriminatory unemployment Structural unemployment
Due to discrimination because of ethnicity or gender
Structural unemployment
Due to socio-economic factors

23. 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

24. 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

25. Work-related Health Problems
Workplace safety
Work stress
Job insecurity
Exploitation

26. 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

27. 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 )

28. 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