8.3 Background information Sociology of Work. Labour Market

No matter what society one lives in, all human beings depend on systems of production to survive. Productive activity, or work, takes up more time than any other single type of behavior. The study of work, industry, and economic institutions is a major part of sociology because the economy influences all other parts of society and therefore a social reproduction in general. It doesn’t matter if we are talking about a hunter-gatherer society, pastoral society, agricultural society, or industrial society; all are centered round an economic system that affects all parts of society, not just personal identities and daily activities. Work is closely intertwined with social structures, social processes and especially social inequality. Sociology of work is an important research area which examines the direction and implication of trends in labor markets, work organization, managerial practices, employment relations etc.. These trends are related to changing patterns of inequality in modern societies and to the changing experiences of individuals and families, the ways in which workers challenge, resist and make their own contributions to the patterning of work and shaping of work institutions.

Work, in sociology, is defined as the carrying out of tasks, which involves the expenditure of mental and physical effort, and its objective is the production of goods and services that cater to human needs. An occupation, or job, is work that is done in exchange for a regular wage or salary. In economic theory, “labour” is any work undertaken in return for payments of fixed or regular nature. When people want to sell their labor force, they come into the labour market. This market encompasses methods, mechanisms and organizations, which help people to find a job according to their abilities and skills, and which help employers to hire workers they need to organize their business or other activities.

What are the distinctive features of the labor market? Firstly, this market is severely regulated by state laws. Secondly, there is a limit price decline, which means, that the price on the labor cannot fall below this limit. This price is determined by the cost of the living. Thirdly, the labor is universal. This characteristic means, that a person is able to acquire new skills, which are needed for other professions, or to improve these skills. And the last, but not the least, is the labor mobility. This is ability of employees to change their place of residence, area, or country, where they work, in order to find better working conditions or higher wages. If employees cannot achieve favorable conditions in their workplace, they retire and sell their labor force to some other more generous employers. The labour market is characterized by severe competition, where employers try to entice the most valuable professionals, and workers compete with one another to get the best jobs at the highest wages. And it is an open secret, that the more valuable employee, the greater the competition for him and the higher wages he may ask.

It must be emphasized, that labor is necessary to stimulate. When the employee has already got a job and the employer has already accepted him, there arise some major problems. The first problem for employer is how to make people work qualitatively and the second problem for employee is how to get more money for the labor. These problems can be solved through economic incentives. Economic stimulation includes the following points: first is promotion of labor activity by high wages, second is involvement of employees in the management of the organization, where they work. And third is the charge of pensions according to the wages.

One of the most important issues of the labor market is the problem of unemployment. Unemployment is a situation in the economy, when the part of able- bodied people cannot find a job. Unemployment prevents the growth of well- being of citizens and the development of the labor market, because many people do not work, do not provide their professional skills. Unemployment arises because of changes in the structure of demand and manufacture, because of the introduction of machines in the production instead of people, etc.

If the society wants to improve public welfare, it should combat unemployment. The state should allocate additional funds to finance different training programs and courses, where unemployed can retrain. The government undertakes to pay unemployment benefits. But for the good of the country it is useful to have some unemployment, which is called natural rate of unemployment. This is normal for all countries, when some people do not work, because they are looking for a job. But, if unemployment becomes higher than its natural rate, it may be dangerous for the social and economic development of the country and lead to political instability.