Tag Archives: employment

Surplus Humans and the Death of Work

detroit-industry-north-wall-diego-rivera

It’s a simple equation: too many humans, not enough work. Low paying, physical jobs continue to disappear, replaced by mechanization. More cognitive work characterized by the need to think is increasingly likely to be automated and robotized. This has complex and dire consequences, and not just global economic ramifications, but moral ones. What are we to make of ourselves and of a culture that has intimately linked work with meaning when the work is outsourced or eliminated entirely?

A striking example comes from the richest country in the world — the United States. Recently and anomalously life-expectancy has shown a decrease among white people in economically depressed areas of the nation. Many economists suggest that the quest for ever-increasing productivity — usually delivered through automation — is chipping away at the very essence of what it means to be human: value purpose through work.

James Livingston professor of history at Rutgers University summarizes the existential dilemma, excerpted below, in his latest book No More Work: Why Full Employment is a Bad Idea.

From aeon:

Work means everything to us Americans. For centuries – since, say, 1650 – we’ve believed that it builds character (punctuality, initiative, honesty, self-discipline, and so forth). We’ve also believed that the market in labour, where we go to find work, has been relatively efficient in allocating opportunities and incomes. And we’ve believed that, even if it sucks, a job gives meaning, purpose and structure to our everyday lives – at any rate, we’re pretty sure that it gets us out of bed, pays the bills, makes us feel responsible, and keeps us away from daytime TV.

These beliefs are no longer plausible. In fact, they’ve become ridiculous, because there’s not enough work to go around, and what there is of it won’t pay the bills – unless of course you’ve landed a job as a drug dealer or a Wall Street banker, becoming a gangster either way.

These days, everybody from Left to Right – from the economist Dean Baker to the social scientist Arthur C Brooks, from Bernie Sanders to Donald Trump – addresses this breakdown of the labour market by advocating ‘full employment’, as if having a job is self-evidently a good thing, no matter how dangerous, demanding or demeaning it is. But ‘full employment’ is not the way to restore our faith in hard work, or in playing by the rules, or in whatever else sounds good. The official unemployment rate in the United States is already below 6 per cent, which is pretty close to what economists used to call ‘full employment’, but income inequality hasn’t changed a bit. Shitty jobs for everyone won’t solve any social problems we now face.

Don’t take my word for it, look at the numbers. Already a fourth of the adults actually employed in the US are paid wages lower than would lift them above the official poverty line – and so a fifth of American children live in poverty. Almost half of employed adults in this country are eligible for food stamps (most of those who are eligible don’t apply). The market in labour has broken down, along with most others.

Those jobs that disappeared in the Great Recession just aren’t coming back, regardless of what the unemployment rate tells you – the net gain in jobs since 2000 still stands at zero – and if they do return from the dead, they’ll be zombies, those contingent, part-time or minimum-wage jobs where the bosses shuffle your shift from week to week: welcome to Wal-Mart, where food stamps are a benefit.

Read the entire essay here.

Image: Detroit Industry North Wall, Diego Rivera. Courtesy: Detroit Institute of Arts. Wikipedia.

PhotoMash: Tax Credit Cuts and Robots

This week’s PhotoMash comes courtesy of the Guardian online news site. It’s front page carried a photo of George Osborne, UK Chancellor of the Exchequer (Treasury Secretary) wondering how to cut tax credits next to a story concluding that robots will take over a third of all UK manual jobs by 2030.

Photomash-Osborne_Cuts-Robot_Jobs

I dare you to find the real human above.

Images courtesy of the Guardian.

The Italian Canary Sings

Coal_bituminousThose who decry benefits fraud in their own nations should look to the illustrious example of Italian “miner” Carlo Cani. His adventures in absconding from work over a period of 35 years (yes, years) would make a wonderful indie movie, and should be an inspiration to less ambitious slackers the world over.

From the Telegraph:

An Italian coal miner’s confession that he is drawing a pension despite hardly ever putting in a day’s work over a 35-year career has underlined the country’s problem with benefit fraud and its dysfunctional pension system.

Carlo Cani started work as a miner in 1980 but soon found that he suffered from claustrophobia and hated being underground.

He started doing everything he could to avoid hacking away at the coal face, inventing an imaginative range of excuses for not venturing down the mine in Sardinia where he was employed.

He pretended to be suffering from amnesia and haemorrhoids, rubbed coal dust into his eyes to feign an infection and on occasion staggered around pretending to be drunk.

The miner, now aged 60, managed to accumulate years of sick leave, apparently with the help of compliant doctors, and was able to stay at home to indulge his passion for jazz.

He also spent extended periods of time at home on reduced pay when demand for coal from the mine dipped, under an Italian system known as “cassazione integrazione” in which employees are kept on the pay roll during periods of economic difficulty for their companies.

Despite his long periods of absence, he was still officially an employee of the mining company, Carbosulcis, and therefore eventually entitled to a pension.

“I invented everything – amnesia, pains, haemorrhoids, I used to lurch around as if I was drunk. I bumped my thumb on a wall and obviously you can’t work with a swollen thumb,” Mr Cani told La Stampa daily on Tuesday.

“Other times I would rub coal dust into my eyes. I just didn’t like the work – being a miner was not the job for me.”

But rather than find a different occupation, he managed to milk the system for 35 years, until retiring on a pension in 2006 at the age of just 52.

“I reached the pensionable age without hardly ever working. I hated being underground. “Right from the start, I had no affinity for coal.”

He said he had “respect” for his fellow miners, who had earned their pensions after “years of sweat and back-breaking work”, while he had mostly rested at home.

The case only came to light this week but has caused such a furore in Italy that Mr Cani is now refusing to take telephone calls.

He could not be contacted but another Carlo Cani, who is no relation but lives in the same area of southern Sardinia and has his number listed in the phone book, said: “People round here are absolutely furious about this – to think that someone could skive off work for so long and still get his pension. He even seems to be proud of that fact.

“It’s shameful. This is a poor region and there is no work. All the young people are leaving and moving to England and Germany.”

The former miner’s work-shy ways have caused indignation in a country in which youth unemployment is more than 40 per cent.

Read the entire story here.

Image: Bituminous coal. The type of coal not mined by retired “miner” Carlo Cani. Courtesy of Wikipedia.

The Sandwich of Corporate Exploitation

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If ever you needed a vivid example of corporate exploitation of the most vulnerable, this is it. So-called free-marketeers will sneer at any suggestion of corporate over-reach — they will chant that it’s just the free market at work. But, the rules of this market,
as are many others, are written and enforced by the patricians and well-stacked against the plebs.

From NYT:

If you are a chief executive of a large company, you very likely have a noncompete clause in your contract, preventing you from jumping ship to a competitor until some period has elapsed. Likewise if you are a top engineer or product designer, holding your company’s most valuable intellectual property between your ears.

And you also probably have a noncompete agreement if you assemble sandwiches at Jimmy John’s sub sandwich chain for a living.

But what’s most startling about that information, first reported by The Huffington Post, is that it really isn’t all that uncommon. As my colleague Steven Greenhouse reported this year, employers are now insisting that workers in a surprising variety of relatively low- and moderate-paid jobs sign noncompete agreements.

Indeed, while HuffPo has no evidence that Jimmy John’s, a 2,000-location sandwich chain, ever tried to enforce the agreement to prevent some $8-an-hour sandwich maker or delivery driver from taking a job at the Blimpie down the road, there are other cases where low-paid or entry-level workers have had an employer try to restrict their employability elsewhere. The Times article tells of a camp counselor and a hair stylist who faced such restrictions.

American businesses are paying out a historically low proportion of their income in the form of wages and salaries. But the Jimmy John’s employment agreement is one small piece of evidence that workers, especially those without advanced skills, are also facing various practices and procedures that leave them worse off, even apart from what their official hourly pay might be. Collectively they tilt the playing field toward the owners of businesses and away from the workers who staff them.

You see it in disputes like the one heading to the Supreme Court over whether workers at an Amazon warehouse in Nevada must be paid for the time they wait to be screened at the end of the workday to ensure they have no stolen goods on them.

It’s evident in continuing lawsuits against Federal Express claiming that its “independent contractors” who deliver packages are in fact employees who are entitled to benefits and reimbursements of costs they incur.

And it is shown in the way many retailers assign hourly workers inconvenient schedules that can change at the last minute, giving them little ability to plan their lives (my colleague Jodi Kantor wrote memorably about the human effects of those policies on a Starbucks coffee worker in August, and Starbucks rapidly said it would end many of them).

These stories all expose the subtle ways that employers extract more value from their entry-level workers, at the cost of their quality of life (or, in the case of the noncompete agreements, freedom to leave for a more lucrative offer).

What’s striking about some of these labor practices is the absence of reciprocity. When a top executive agrees to a noncompete clause in a contract, it is typically the product of a negotiation in which there is some symmetry: The executive isn’t allowed to quit for a competitor, but he or she is guaranteed to be paid for the length of the contract even if fired.

Read the entire story here.

Image courtesy of Google Search.

Big Data and Your Career

If you’re a professional or like networking, but shun Facebook, then chances are good that you hang-out on LinkedIn. And, as you do, the company is trawling through your personal data and that of hundreds of millions of other members to turn human resources and career planning into a science — all with the help of big data.

From the Washington Post:

Every second, more than two people join LinkedIn’s network of 238 million members.

They are head hunters in search of talent. They are the talent in search of a job. And sometimes, the career site for the professional class is just a hangout for the well-connected worker.

LinkedIn, using complex, carefully concocted algorithms, analyzes their profiles and site behavior to steer them to opportunity. And corporations parse that data to set business strategy. As the network grows moment by moment, LinkedIn’s rich trove of information also grows more detailed and more comprehensive.

It’s big data meeting human resources. And that data, core to LinkedIn’s potential, could catapult the company beyond building careers and into the realms of education, urban development and economic policy.

Chief executive Jeff Weiner put it this way in a recent blog post: “Our ultimate dream is to develop the world’s first economic graph,” a sort of digital map of skills, workers and jobs across the global economy.

Ambitions, in other words, that are a far cry from the industry’s early stabs at modernizing the old-fashioned jobs board (think ­Monster.com and CareerBuilder).

So far, LinkedIn’s data-driven strategy appears to be working: It turned its highest-ever profit in the second quarter, $364 million, and its stock price has grown sixfold since its 2011 initial public offering. Because its workforce has doubled in a year, it’s fast outgrowing its Mountain View headquarters, just down the street from Google. In 2014, it’ll move into Yahoo’s neighborhood with a new campus in Sunnyvale.

The company makes money three ways: members who pay for premium access; ad sales; and its gold mine, a suite of products created by its talent solutions division and sold to corporate clients, which accounted for $205 million in revenue last quarter.

When LinkedIn staffers talk about their network and products, they often refer to an “ecosystem.” It’s an apt metaphor, because the value of their offerings would seem to rely heavily on equilibrium.

LinkedIn’s usefulness to recruiters is deeply contingent on the quality and depth of its membership base. And its usefulness to members depends on the quality of their experience on the site. LinkedIn’s success, then, depends largely on its ability to do more than just amass new members. The company must get its users to maintain comprehensive, up-to-date profiles, and it must give them a reason to visit the site frequently.

To engage members, the company has deployed new strategies on all fronts: a redesigned site; stuff to read from the likes of Bill Gates, Jack Welch and Richard Branson; new mobile applications; status updates; targeted aggregated news stories and more.

By throwing more and more at users, of course, LinkedIn risks undermining the very thing that’s made it the go-to site for recruiters: a mass of high-quality candidates, sorted and evaluated and offered up.

“I think there’s a chance of people getting tired of it and checking out of it,” said Chris Collins, director of Cornell University’s Center for Advanced Human Resource Studies.

Read the entire article here.

Image courtesy of Telegraph / LinkedIn.

Technology and Employment

Technology is altering the lives of us all. Often it is a positive influence, offering its users tremendous benefits from time-saving to life-extension. However, the relationship of technology to our employment is more complex and usually detrimental.

Many traditional forms of employment have already disappeared thanks to our technological tools; still many other jobs have changed beyond recognition, requiring new skills and knowledge. And this may be just the beginning.

From Technology Review:

Given his calm and reasoned academic demeanor, it is easy to miss just how provocative Erik Brynjolfsson’s contention really is. ­Brynjolfsson, a professor at the MIT Sloan School of Management, and his collaborator and coauthor Andrew McAfee have been arguing for the last year and a half that impressive advances in computer technology—from improved industrial robotics to automated translation services—are largely behind the sluggish employment growth of the last 10 to 15 years. Even more ominous for workers, the MIT academics foresee dismal prospects for many types of jobs as these powerful new technologies are increasingly adopted not only in manufacturing, clerical, and retail work but in professions such as law, financial services, education, and medicine.

That robots, automation, and software can replace people might seem obvious to anyone who’s worked in automotive manufacturing or as a travel agent. But Brynjolfsson and McAfee’s claim is more troubling and controversial. They believe that rapid technological change has been destroying jobs faster than it is creating them, contributing to the stagnation of median income and the growth of inequality in the United States. And, they suspect, something similar is happening in other technologically advanced countries.

Perhaps the most damning piece of evidence, according to Brynjolfsson, is a chart that only an economist could love. In economics, productivity—the amount of economic value created for a given unit of input, such as an hour of labor—is a crucial indicator of growth and wealth creation. It is a measure of progress. On the chart Brynjolfsson likes to show, separate lines represent productivity and total employment in the United States. For years after World War II, the two lines closely tracked each other, with increases in jobs corresponding to increases in productivity. The pattern is clear: as businesses generated more value from their workers, the country as a whole became richer, which fueled more economic activity and created even more jobs. Then, beginning in 2000, the lines diverge; productivity continues to rise robustly, but employment suddenly wilts. By 2011, a significant gap appears between the two lines, showing economic growth with no parallel increase in job creation. Brynjolfsson and McAfee call it the “great decoupling.” And Brynjolfsson says he is confident that technology is behind both the healthy growth in productivity and the weak growth in jobs.

It’s a startling assertion because it threatens the faith that many economists place in technological progress. Brynjolfsson and McAfee still believe that technology boosts productivity and makes societies wealthier, but they think that it can also have a dark side: technological progress is eliminating the need for many types of jobs and leaving the typical worker worse off than before. ­Brynjolfsson can point to a second chart indicating that median income is failing to rise even as the gross domestic product soars. “It’s the great paradox of our era,” he says. “Productivity is at record levels, innovation has never been faster, and yet at the same time, we have a falling median income and we have fewer jobs. People are falling behind because technology is advancing so fast and our skills and organizations aren’t keeping up.”

Brynjolfsson and McAfee are not Luddites. Indeed, they are sometimes accused of being too optimistic about the extent and speed of recent digital advances. Brynjolfsson says they began writing Race Against the Machine, the 2011 book in which they laid out much of their argument, because they wanted to explain the economic benefits of these new technologies (Brynjolfsson spent much of the 1990s sniffing out evidence that information technology was boosting rates of productivity). But it became clear to them that the same technologies making many jobs safer, easier, and more productive were also reducing the demand for many types of human workers.

Anecdotal evidence that digital technologies threaten jobs is, of course, everywhere. Robots and advanced automation have been common in many types of manufacturing for decades. In the United States and China, the world’s manufacturing powerhouses, fewer people work in manufacturing today than in 1997, thanks at least in part to automation. Modern automotive plants, many of which were transformed by industrial robotics in the 1980s, routinely use machines that autonomously weld and paint body parts—tasks that were once handled by humans. Most recently, industrial robots like Rethink Robotics’ Baxter (see “The Blue-Collar Robot,” May/June 2013), more flexible and far cheaper than their predecessors, have been introduced to perform simple jobs for small manufacturers in a variety of sectors. The website of a Silicon Valley startup called Industrial Perception features a video of the robot it has designed for use in warehouses picking up and throwing boxes like a bored elephant. And such sensations as Google’s driverless car suggest what automation might be able to accomplish someday soon.

A less dramatic change, but one with a potentially far larger impact on employment, is taking place in clerical work and professional services. Technologies like the Web, artificial intelligence, big data, and improved analytics—all made possible by the ever increasing availability of cheap computing power and storage capacity—are automating many routine tasks. Countless traditional white-collar jobs, such as many in the post office and in customer service, have disappeared. W. Brian Arthur, a visiting researcher at the Xerox Palo Alto Research Center’s intelligence systems lab and a former economics professor at Stanford University, calls it the “autonomous economy.” It’s far more subtle than the idea of robots and automation doing human jobs, he says: it involves “digital processes talking to other digital processes and creating new processes,” enabling us to do many things with fewer people and making yet other human jobs obsolete.

It is this onslaught of digital processes, says Arthur, that primarily explains how productivity has grown without a significant increase in human labor. And, he says, “digital versions of human intelligence” are increasingly replacing even those jobs once thought to require people. “It will change every profession in ways we have barely seen yet,” he warns.

Read the entire article here.

Image: Industrial robots. Courtesy of Techjournal.