1. Ch. 16
The Economy and Work

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. 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. Economic activity that crosses national borders
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.

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, Mar. 1, 2017)

13. 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

14. 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

15. 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)

16. 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

17. 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

18. 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

19. 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

20. 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 are corporations
Walmart, Apple, Shell richer than Russia, Belgium, Sweden
Source: Global Justice Now 2016
Click here for full Global Justice list

21. 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

22. Unemployment and Social Problems
Discriminatory unemployment: ethnicity, gender
Structural unemployment: socio-economic factors
New problem linked to gendered employment:
Canada in past four 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

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

24. Unemployment (cont.)
Unemployed increases with “downsizing” esp. in recession
February 2017 is 6.8%. 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 Aboriginals
Higher for younger men and women

25. Unemployment Rates

26. Work and Unemployment Related Health Consequences
Work problems
Workplace safety
Work stress
Job insecurity
Exploitation
Unemployment Issues
Increased mortality
Substance Abuse
Depression and Anxiety
Increased smoking rate and higher obesity
Increased violence
Domestic violence

27. 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

28. 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

29. 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

30. Discussion: 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 desire a better work-life balance

31. 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)

32. Reflection #8 Fri. March 10
This is the link to Harvard’s IAT (Implicit Association Test) in order for you to complete this week’s reflection paper:
Reflection is due on Tuesday