Chapter Summary

CHAPTER 11 Work and the Economy

The American economy, the nature of work, and the nature of the work force are vastly different today from what they were at various times in the past. American industrialization occurred in the context of capitalism. The global economy has become particularly important. Globalization means that businesses find low-skilled workers in other nations who work for lower pay than do Americans. In the competitive context of the global economy, a number of changes have occurred that are detrimental to the well-being of many American workers, including downsizing. The labor force has increased enormously over time. Since at least 1940, the labor force has been growing faster than the population. There are now more than 30,000 occupational categories, which reflects an increased division of labor and work specialization. Since 1900, sharp increases have occurred in the numbers of professionals, managers, clerical workers, and service workers, and declines in the numbers of private household workers, farmers, and farm workers. The education level of the work force has been increasing, women's participation in the labor force has been expanding rapidly, and union membership appears to have declined in the last decade. Many observers argue that the work ethic has declined and that Americans increasingly value their leisure time. But, Americans are not rejecting work; they are rejecting meaningless work and low-quality jobs.

There are three basic problems associated with work in America today: unemployment and underemployment, dissatisfaction and alienation, and work hazards. In 1998, 4.8 million Americans were not in the labor force but indicated that they "want a job now." Rates of unemployment are higher for youth, African Americans, women, and blue-collar workers. In general, expanding job categories have lower unemployment rates. Many workers are alienated, but studies show greatest satisfaction among professional and white-collar workers. In 1998, 5.9 million injuries and illnesses occurred in private industry workplaces. Work hazards produce work-induced stress.

Ironically, both working and not working can have adverse effects on people's health. Work can have a negative impact on the emotional and physical well-being of workers through feelings of alienation and high levels of job dissatisfaction. The stress of being forcibly unemployed can be as serious as the stress of working in undesirable conditions or in an unfulfilling job; it is detrimental to both physical and emotional well-being. Work-related stress can also adversely affect interpersonal relationships.

People in a capitalist economy are motivated by profit: workers' needs are subservient to organizational needs, as reflected in practices like union-busting, downsizing, and the use of temporary workers. It is important to understand the political economy of work, of unemployment, and of work hazards. There is a basic contradiction between the values of hard work and the American dream of success: The job market cannot meet this expectation. Alienation and job dissatisfaction are inevitable due to the nature of the work roles and work environments in contemporary society. The labor market cannot deliver jobs that fully employ a highly educated labor force. Technology leads to tasks that are highly specialized, repetitious, boring, and depersonalized-an especially severe problem for blue-collar workers. Some jobs necessarily entail more risk than others. American ideology emphasizes the value of all work, yet equal value is not assigned to all forms of work.

Problems of worker dissatisfaction and alienation can be addressed through job enrichment, flextime, participatory management, and employee ownership. Innovations such as these appear to yield higher productivity, lower costs, and increased worker satisfaction, but these measures draw skepticism and resistance from some Americans, including those in management.