1-5
AA6666
Week5_WorkandUnemployment.pptxWork, Unemployment, and the Economy
Week 5
Learning Goals & Objectives
Describe the three sectors of the economy
Distinguish between the two major economic systems in the world today
Discuss the advantages and disadvantages of capitalism and socialism
Interpret and describe general trends in US (un)employment, major industries, and wages
Economy
“The social institution that organizes production, distribution, and consumption of a society’s goods and services.”
Even though we think of the economy and the government as distinct social institutions, in reality, they are deeply intertwined.
Overview of the Economy
Three sectors
1. Primary Sector: Takes & uses raw materials directly from natural environment
2. Secondary Sector: Manufacturing industry – transforming raw materials into usable products
3. Tertiary Sector: Service Sector – provides services such as health care, teaching, information technology, etc.
Looking at the Denver metro area, where do we find ourselves in terms of economic sectors?
“Generally speaking, the less developed a society’s economy, the more important its primary sector; the more developed a society’s economy, the more important its tertiary sector. As societies developed economically over the centuries, the primary sector became less important, and the tertiary sector became more important.” (Social Problems: Continuity & Change)
Overview of the Economy
Two major economic systems
Capitalism: Means of production are privately owned; most important goal is the pursuit of personal profit; according to theorists this should benefit society as a whole
Socialism: Means of production is collectively owned; most important goal is working for the collective good, the needs of society are more important than individual needs
Think – Pair – Share
To what extent, if any, do you think our current economic system (i.e., capitalism) is to blame for the problems in work and the economy?
Remember to use your sociological imagination! Discuss in sociological terms.
Sociological Perspectives on Work and the Economy
| Theoretical Perspective | Major Assumptions |
| Functionalism | Work and the economy serve several functions for society. The economy makes society possible by providing the goods and services it needs. Work gives people an income and also provides them some self-fulfillment and part of their identity. |
| Conflict theory | Control of the economy enables the economic elite to maintain their position at the top of society and to keep those at the bottom in their place. Work is often alienating, and the workplace is often a site for sexual harassment and other problems. |
| Symbolic Interactionism | This perspective focuses on social interaction in the workplace, on how employees respond to problems in their workplaces, and on how they perceive the work they do. |
| Intersectionality | The economy is controlled by those in power because of the privileges they have been granted in life. A person’s gender, race, ethnicity, nationality, class, etc. has a significant impact on their position in society. Work is alienating, especially for the most marginalized and oppressed groups. Different identities have different levels of access, rights, and opportunities. |
Think – Pair – Share
Use one of the sociological perspectives (functionalism, conflict theory, symbolic interactionism, feminist perspective, or intersectionality) to understand and discuss some aspect of a job you’ve had or currently have.
For example, use sociology to think about and explain why things are the way they are within an organization, or how people behave/interact at work
Workplace interactions between colleagues of differing seniority; unequal treatment by managers; safety trainings and safe work practices
Labor Force and (Un)employment Quick Facts (from Bureau of Labor Statistics)
The US government considers the civilian labor force as all noninstitutionalized civilians 16 or older who work for pay or are looking for work.
As of 2020 (and projections for 2030)
Approx. 153.5 million people were employed in the US
“Office and Administrative Support occupations” employed more people than any other industry (individually); “Sales and related occupations” employed the second highest number
The fastest growing occupation is home health and personal care aides
Employment is projected to increase by 11.9 million jobs by 2030
As of August 2021, Nevada was the state with the highest unemployment rate at 7.7%
Women hold multiple jobs at a higher rate than men, and that rate has increased for the past 20 years
Source: U.S. Bureau of Labor Statistics Release: Employment Situation Units: Percent, Seasonally Adjusted Frequency: Monthly The unemployment rate represents the number of unemployed as a percentage of the labor force. Labor force data are restricted to people 16 years of age and older, who currently reside in 1 of the 50 states or the District of Columbia, who do not reside in institutions (e.g., penal and mental facilities, homes for the aged), and who are not on active duty in the Armed Forces. This rate is also defined as the U-3 measure of labor underutilization. The series comes from the 'Current Population Survey (Household Survey)' The source code is: LNS14000000 U.S. Bureau of Labor Statistics, Unemployment Rate [UNRATE], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/UNRATE, October 10, 2021.
Effects of Unemployment and Recent Wage Trends
Effects of unemployment
Loss of income
Strained relationships
Loss of self-respect
Sleep difficulties and alcohol problems
Mental and physical health issues
Recent trends in jobs and wages
Historical trend shows general job loss and overall stagnating wages, but recently wages have increased (we’ll look into this wage growth in a minute)
Decline in existence of labor unions, although they seem to be gaining popularity again
Increasing economic inequality
Things to think about.
What are the benefits and disadvantages of corporations in modern society?
What are some of the problems associated with increasing economic inequality?
Improving Work and the Economy
Types of social reform
Stronger enforcement of laws against racial, ethnic, and gender bias in employment
Promotion of co-worker friendships and care for individual mental health & well-being
Extend social services and benefits for the unemployed
Stricter oversight of and sanctions against corporate crime
Restoration of tax rates from before the 1980s; Increase tax rates for corporations
Improve national infrastructure, especially concerning job training and job creation
Activity
Process:
Racial and ethnic discrimination in hiring and employment
Worker morale
Unemployment
Corporate misbehavior
Economic inequality – largely due to tax codes that greatly favored the wealthy
Issues:
Create three solutions to help address/mitigate the issue identified
Present your solutions to the class
You can only implement 1 solution: As a group, you will have to decide which solution proposal you will endorse
Globalization & the Economy
Globalization: the process of integrating governments, cultures, and financial markets through international trade into a single world market
The North American Free Trade Agreement (NAFTA)
Agreement between Canada, the US, and Mexico
Less restrictive tariffs and import laws imposed on international trade
Trade can lead to increases and decreases in job opportunities
Evidence shows that NAFTA caused job losses across all US states and in Mexico
Global assembly lines: products are assembled over the course of several international transactions
Global commodity chains: internationally integrated economic links connect workers and corporations for the purpose of manufacture and marketing
Benefits and Drawbacks to Globalization
Benefits
Exponentially accelerated progress of development
Creation of international awareness and empowerment
Potential for increased wealth
Drawbacks
Growing influence of enormous international and financial industrial corporations that benefit the more from free trade and unrestricted markets
The possibility of corporations using their vast wealth and resources to control governments to act in their interest rather than that of the local population
Negative impacts on the environment and local economies
Widespread economic damage because of loose regulation
Weak labor movements
Wealthy countries can force economically weaker counties to open their markets while protecting their own local products from competition
