The Transformation of Work in the Information Age

Week 8 – The Transformation of Work in the Information Age•Manuel Castells. 2000. (2nd ed.). The Rise of the Network Society. Volume 1 of The Information Age: Economy, Society and Culture. Blackwell. pp. 216-354•Frank Levy and Richard Murnane. 2004. The New Division of Labor: How Computers are Creating the Next Job Market. Princeton University Press. pp. 1-54

Introduction This presentation is on

Transformation of work and employment 1920-70, 1970 and beyond All analysis based on data of Advanced Capitalist Countries:

the G7 Evaluation period is 1920-2007

The Transformation of Work and Employment

Manuel Castells, tries to address following:

Secular transformation of employment structure Emergence of Global Labor Impact of IT, widespread fear of jobless society Impact on social structure with emergence of the

Information paradigm.


Classical theory of post-industrialism Source of productivity and growth lies in

generation of knowledge Demise of agricultural and manufacturing

employment New social structure based on importance of

managerial, professional and technical occupations


Proposed criterion for post-industrialism Distinction not to be done on base of source,

rather should be on form of knowledge based production.

Services sector increased, however manufacturing sector did not decline as predicted.

Growth may be small, however low end or unskilled jobs continue to represent a significant number in post-industrial occupational structure.


The transformation of employment structure 1920-70, 1970-90 Post-agricultural (1920-70) – Increase in

employment in transformative activities. True for all G7.

Post-industrial (1970-90) – Decrease in manufacturing employment, however depression was uneven.

De-industrialization rate: rapid in US, UK and Italy. Moderate in Japan and Germany. Intermediate in France and Canada.


The transformation of employment structure 1920-70, 1970-90 Agriculture {Manufacturing and Services}


Services industry Types

Producer services – information provider, support productivity Social services – health, hospitals Distributive services – transporation, communication Personal services – eating and drinking places

Findings Increased for all G7 countries US: Pioneered Japan: Increased, however rate was moderate


Paths of growth post-industrial (after 1970) Rapid phasing out of manufacturing services,

increase in producer services (in rate) and social services (in size)

Integrating manufacturing and producer, cautious increase in social services and maintaining distributive services. e.g. Japan (greater agricultural and retail), Germany (higher manufacturing employment)


Quicker destruction of manufacturing jobs, instead of a gradual phasing out, does not mean more advanced.

Rather the rate of decline of manufacturing services depends on policies and strategies followed, which in turn are based on cultural, social and political backdrop.


The new occupational structure Diverse path (US {new . minus. old)}, Japan

{old .coexist. new}) , however trend toward increase in informational occupations is common.

Polarization of occupation structure = FALSE Rate of change of jobs at top and bottom is different.


Employment projections for 21st century: agriculture phased out; steady decline in manufacturing employment; increase in services sector; producer + social services on rise


Sectoral employment shares (%) in the world, 1997 - 2007

Source: ILO, Global Employment Trends Model, November 2007


Is there a Global Labor Force? Yes, individuals in innovative R&D, research

scholars, cutting technology, financial management and services form global labor force. Indicators: keep high profile / non-repetitive,

innovative task, outsource others for cheaper labor , sub-contracting, temporary labor, automate,… (downsize firm size)


Source : US Bureau of the Census. (http://www.census.gov/population/www/socdemo/foreign/STP-159-2000tl.html)

Foriegn Born US Population

Foreign Born US Population (before 1970 and 1970:2000)


The Work Process in the Informational Paradigm work and labor model is messy, not a neat

(technological change + industrial relations policy + social action) e.g. Automation demands human brain in work

process, however later computers turn human into second order robots.


The Work Process in the Informational Paradigm With informational technology

more employee participation – mainframe to PC (phases in office automation)

increased productivity, and quality product better feedback in production process


The Work Process in the Informational Paradigm Professional job polarization (low skilled, high skilled

clerical and highly specialized task)

Women participation Multi skilling and more responsibility. (Job titles such as

Assistant Manager.)


The Effects of Information Technology on Employment: Toward a Jobless Society? Unemployment as predicted did not occur Employment growth positive in all regions

namely US, Japan and Europe Global Employment Trends (1997-2007) by ILO,

later in presentation. (Click here)


Summary

New jobs created, old jobs depressed, however on quantitative analysis (Job created .minus. Job lost) varied from region to region, due to several other factors such as government policies.


Work and Information Divide: Flex-timers Working time: flex, means unconstrained by tradition 35-

40 hours per week Job stability: no commitment to future employment Location: large concentration at work place, however

increase in proportion of outside workplace Employer and employee contracts: less commitment than

traditional contract.

Trends: More freedom, self employment, and temporary help on the rise.

The Transformation of Work and Employment Status of Employment Shares in total employment, 2007 in all regions

(%)



Work and Information Divide: Flex-timers US model to deal with labor shortage

Non-traditional incentive such as stock options. Use of immigrant labor in both highly skilled and unskilled

occupations Temporary of JIT labor.

What model Europe practiced Dutch model: moderate wage increase however preserve core

jobs in the industry. Expansion to temporary, part-time and other flexible forms of

employment.


Information Technology and the Restructuring of Capital-Labor Relation: Social Dualism or Fragmented Societies? Productivity and profitability (↑) Labor protection (↓)


Information Technology and the Restructuring of Capital-Labor Relation: Social Dualism or Fragmented Societies? Occupational Structure

Top and Bottom layer (↑) Middle layer (↓), rate of decline varied from country

to country. It is dependent on political climate and position in global competition.


Summary New social structure

Disjoint labor Rise of individualism Showing up of network society

New Divisions of Labor Adhoc committee miscalculation.

Expectation : computers will replicate all models by which human process information. {Statement was partly correct}

Fact: Major upheaval in nature of work, not mass unemployment.

New Divisions of Labor “divisions of labor” words by Adam Smith,

new meaning in computer age Division of labor between computers and humans Growing division within human labor

Can or cannot do valued work in computers world

The two above has created the divide.

New Divisions of Labor To bridge the divide

Rethink training and education Identify who (computer vis a vis humans) is good

at what? Identify well paid work in now and in future How people can learn the new skills in the

computerized world.

New Divisions of Labor How work has changed

Computerization new jobs and destroyed old. Depression: clerical and blue collar jobs Growth:

cafeteria workers, security guards {held by working poor} and managers, doctors, lawyers, engineers etc. {held by

upper part} Traits: higher pay, extensive skills, use of computers to

increase productivity.

New Divisions of Labor How work has changed

Summary: Upper and Lower (↑) – Intermediaries (↓)

Why People Still Matter 11.Nov.1999 Liffe closed, now Euronext.

Euronext – digital, many other exchanges joined. September 2001, Dr. Stephen Saltz used

computers for better diagnostics. Computerization

Replaced Traders, however could only complement Doctor’s diagnostic skills.

Why People Still Matter Rules – step by step : computerized

e.g. Rail Ticketing, Flight enquiry

Pattern – solving new problem referring an old existing pattern : not computerized.

Perception : difficult to program Interpreting what is perceived: even human differs

Why People Still MatterCan computers substitute humans in all jobs

No, its not easy. However computers can complement humans by providing large information at low cost. Example: echocardiograph

How Computers Change Work and Pay

Boeing – Use of CATIA, CNC

Dispersed manufacturing, low cost production and new foreign customers


What characterizes use of a new computer application

Adopt computer, gain a particular competitive advantage

Recognize computer potential, reorganize work Create new jobs and destroy old jobs


Computerization: Employment or Unemployment ? With reference to Herbert Simon’s 1960 essay

Humans and computers both will be used, however in areas of their respective comparative advantage.

More output, low cost, higher income, more customers bestUse (Humans, Computers) = Mass employment




Economy’s job mix in computer’s world Two schools of thought

Computers – low skilled jobs, Humans – move to high skilled jobs

Computers – high skilled jobs, Humans – forced to menial jobs


Predictions by Herbert Simon, in his essay

Blue-collar workers – (↓) Machine maintenance workers – (↑) Clerical workers – (↓) Salespeople – (↑) Managers – (↑)


Source : News Bureau of Labor Statistics, United States Department of Labor. Released: Tuesday, December 4, 2007

Top 10 industries with largest wage and salary employment growth, 2006 - 2016

How Computers Change Work and Pay Workers skills and New Nature of Work

Expert thinking – no rule based solution; Humans, computers will only complement

Complex communication – interacting with other humans; humans only

Routine manual/cognitive tasks – rule based; candidate for computerization

Non routine manual tasks – involving optical and fine muscle control; human


Summary Constant drive to develop, produce, and market

new products depends on Humans ability to manage and solve analytical

problems and communicate new information.

Above keeps Expert Thinking and Complex Communication in strong demand.

References ILO, Global employment trends: January

2008. Home page: (http://www.ilo.org/global/lang--en/index.htm)

Bureau of Labor Statistics, United States Department of Labor.

Home page: (http://www.bls.gov/)

US Bureau of the Census Home page: (http://www.census.gov/)

The Transformation of Work in the Information Age

Technology

transformation of work

employment source

employment paths

work process

manufacturing services

employment manuel castells

informational paradigm

employment proposed