Work and Unemployment as Social
Issues
Harley D. Dickenson
Group Members:
Joe, Jun (Benny), Stephanie,
Justin
Main Argument

“Unemployment is appropriately
understood as a social issue –
and not just as a personal
problem”
Let’s examine this further…
Personal Problem – “one whose
causes and solutions lie within the
individual and the individual’s
immediate environment” – text pg 2
Social Problem – “one whose causes
and solutions lie outside the
individual and his or her immediate
environment” – text pg 2
…so what is Dickenson’s
point?

Basically that “unemployment is
largely a consequence of
contradictions in the nature and
organization of employment, or the
characteristics of work processes in
modern capitalist societies.”
Is this accurate?
Dickenson examines this
issue in four parts:
1.
2.
3.
4.
By arguing that the specific nature of capitalist
class relations creates the circumstances within
which unemployment emerges as a major social
issue. (Rise of Capitalist Mode of Production)
By showing how the pursuit of employer interests
results in unemployment. (Labour Process
Theory) (Division of Labour and Work)
By examining some of the ways in which the
transformation of work results in changes to the
structure of the economy and the nature of both
employment and unemployment.
By offering a solution.
Let’s take a closer look at each…
1. Rise of Capitalist Mode of
Production


Individuals rely on employment
income for survival and few, if any,
alternatives exist.
THUS,
wage earners are dependant upon
employers for jobs, income, and
survival.
Much social policy is directed toward
achieving this end.
cont…
…cont
 With the rise of industrialization
in Canada an increasing
proportion of the population
transforms into members of the
wage earning class.
This, in turn, translates into an
increasing number of individuals
in, and entering into, the labour
force.
cont…
…cont
100
90
80
70
60
50
40
30
20
10
0
Economic
Growth
*Chart for visual effect only. Does not represent actual Canadian economic growth

Effect - As economic growth fluctuates,
individuals entering the labour force are
exposed to varying shifts in labour market
conditions, skill requirements, and
developing technological changes.
cont…
…cont
 Result – “different categories of
people, such as women, the
young, the elderly, and
members of ethnic minorities
perform different types of jobs
under different working
conditions, for different levels of
pay and with different
consequences. Such as, a
different probability and duration
of employment.”
*sociological perspective
2.Labour Process Theory

Rooted in Capitalism
Meaning that the capitalist mode of production and
accumulation is dominant.

Capitalism relies on the
relationship between (at least) 2
classes of individuals:
I.
Capitalists
Working Class
II.
cont…
…cont
I.
Capitalist – Those who control the means
of production. They own or control all the
necessary inputs, exclusive of labour, needed to
produce goods and services.
II.
Working Class – Members of the
population who do not own any means of
production and who sell their labour power for
wages and salaries to those who control the
means of production.
However, this relationship is
inequitably balanced…

…Although these parties are
mutually dependent, the working
class is economically, socially,
and politically subordinate to the
capitalist class.
The primary objective of
capitalist production is to earn
profits for business owners…
…How?
1.
Cost reductions and
increased productivity
Absolute Reductions in the costs
of production – reduction in wage
and salary rates/ reducing work
hours
Relative reductions in the costs
of production – increasing worker
productivity/ decreasing cost per
unit
This translates into what is known as…
2.
…The Capitalist Division of
Labour and Work

Breaking down any given process
into its constituent tasks.
Increased wage labourers doing
simple repetitive tasks.
Efficiency and Flexibility
Consequences…
…reducing individual skill level
and reducing wages paid to
workers.
Lower skilled workers are left
with fewer opportunities outside
of the firm or industry in which
their skill is required…
STRUCTURAL
UNEMPLOYMENT?
…cont
Result – workers become
unemployed, underemployed,
deskilled, unmotivated, discouraged,
and may no longer seek employment
(therefore no longer included in the
unemployment rate).
Also, consumer purchasing power is
affected.
We are now going to dramatize
some of the main elements of The
Capitalist Division of Labour and
Work…
Mr. Weeds Toys
(sole proprietor)
HAPPY GO LUCKY
TOYS INC.
3. The Changing Nature of
Employment and Unemployment





A decline, both relative and real, in
the goods producing sector of the
economy since WWII.
An increase in the service producing
sector of the economy.
An increase in self-employment.
Growth in part-time employment.
Individuals working more than one
job.
cont…
…cont
 Increased labour-force participation
by married women.
 Decrease in mean wages for most
demographics.
 Two-tier wage structures.*
 Poor job quality – job-poor growth**
 The “hollowing out of the middle
class” (larger gap between rich and
the poor).**
*Belcourt, Bohlander, Snell; Human Resources Management
**Burke;Canadian Public Policy in an Age of Global Capitalism
cont…



Economic insecurity**
Just-in-time employment for a
just-in-time economy**
Increase in the number of
employment agencies.
What does this all mean?
Is there a solution?
What does this all mean….
(in a nutshell)

Individuals (workers) are forced to enter
into a wage relationship with capitalists and
endure the cyclical nature of economic
growth while balancing infinite attempts to
restructure, relocate, and phase out higher
paying jobs as capitalists search for profits
and competitive advantage. Neo-liberal
politics compliments this type of behaviour
by capitalists and workers are left to work
harder, longer, and for less money than
before, or enter the labour force
themselves as capitalists which
perpetuates the problem. Capitalists are
forced to bring cheaper products to the
market place in order to facilitate reduced
purchasing power and therefore this entire
cycle continues to accelerate.
4. Dickenson’s Solution

“The solution to the problem of
unemployment resides in the
political realm, and will require a
transformation of the interests
underpinning economic decision
making and resource
mobilization and allocation.”
Not much of a solution, eh!
cont…
What’s this guy really suggesting?
What about organized labour? Is it
dying? (take a look at the handouts)
Is unemployment really a
problem? (take a look at the handouts)
For this last question we
conducted a little survey…

A.
B.
We surveyed 20 York Region
employment agencies (of which
there are no less than 50), and
posed these questions…
Would you say it is more difficult to
find work in general, or workers to
fill positions?
Would you say it is more difficult to
find quality work (good wage, job
security etc.) or quality workers
(reputable, responsible, eager to
succeed etc.) to fill these
positions?
Results


5 of the respondence found that there were
no discernable differences between either
group in either question. Basically they
suggested that it was more an issue of
time-of-year.
All of the other respondence answered
both questions in the same manner, 6 of
which replied that work was more difficult
to find and the rest (the majority) found that
finding workers was indeed most difficult.
So, what does this mean?
What about labour unions?




Here are some questions to
contemplate…
Does the decline in private sector
unionization reflect anything other
than simply a change in the rights
and powers of unions as described
by Dickenson?
Do people reject unionization
because maybe the labour market is
not that bad after all?
Has inequity within unions set in just
as the rest of society?
Are people no longer feeling the
need to bargain collectively?
1. Discussion Questions
Dickenson: “Unemployment is appropriately
understood as a social issue – and not just as a
personal problem”



According to Stats Canada (refer to handouts)
employment is on the rise; according to our survey
there is plenty of employment out there; and
according to our own experience, employment is not
difficult to find? Is this really a social issue or are
people just becoming overly selective and unable to
adjust to a changing world?
Should people focus more on improving their skills
and increasing their level of education away from
the workplace?
Is complacency the real culprit?
2. Discussion Questions



“The solution to the problem of
unemployment resides in the political
realm, and will require a
transformation of the interests
underpinning economic decision
making and resource mobilization
and allocation.”
Do you agree with Dickenson’s
solution, in that, is it plausible?
What is he suggesting; a radical
restructuring of the world economy?
Prize Question!!!





Dickenson describes Relative
reductions in the costs of
production as:
A - reduction in wage and salary
rates/ reducing work hours
B – the relationship between
capitalists and the working class
C - increasing worker productivity/
decreasing cost per unit
D – Labour force exclusion
And the answer is….




C - increasing worker
productivity/ decreasing cost per
unit