Employment is a relationship between two
parties
A party is a gathering of people who have been invited by a host for the purposes of socializing, conversation, recreation, or as part of a festival or other commemoration or celebration of a special occasion. A party will often feature ...
regulating the provision of paid
labour
Labour or labor may refer to:
* Childbirth, the delivery of a baby
* Labour (human activity), or work
** Manual labour, physical work
** Wage labour, a socioeconomic relationship between a worker and an employer
** Organized labour and the labour ...
services. Usually based on a
contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...
, one party, the employer, which might be a
corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...
, a
not-for-profit organization
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
, a
co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work.
Employees work in return for wages, which can be paid on the basis of an hourly rate, by
piecework
Piece work (or piecework) is any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed, regardless of time.
Context
When paying a worker, employers can use various methods and combinations of ...
or an annual
salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
F ...
, depending on the type of work an employee does, the prevailing conditions of the sector and the
bargaining power
Bargaining power is the relative ability of parties in an argumentative situation (such as bargaining, contract writing, or making an agreement) to exert influence over each other. If both parties are on an equal footing in a debate, then they w ...
between the parties. Employees in some sectors may receive
gratuities,
bonus payment
A bonus payment is usually made to employees in addition to their base salary as part of their wages or salary. While the base salary usually is a fixed amount per month, bonus payments more often than not vary depending on known criteria, such a ...
s or
stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include
health insurance,
housing
Housing, or more generally, living spaces, refers to the construction and assigned usage of houses or buildings individually or collectively, for the purpose of shelter. Housing ensures that members of society have a place to live, whether i ...
,
disability insurance. Employment is typically governed by
employment laws, organisation or legal contracts.
Employees and employers
An employee contributes labour and expertise to an endeavor of an employer or of a person conducting a business or undertaking (PCB) and is usually hired to perform specific duties which are packaged into a
job
Work or labor (or labour in British English) is intentional activity people perform to support the needs and wants of themselves, others, or a wider community. In the context of economics, work can be viewed as the human activity that contr ...
. In a corporate context, an employee is a person who is hired to provide services to a
company on a regular basis in exchange for
compensation and who does not provide these services as part of an
independent business.
Independent contractor
An issue that arises in most companies, especially the ones that are in the
gig economy, is the classification of workers. A lot of workers that fulfill gigs are often hired as ''independent contractors''.
To categorize a worker as an independent contractor rather than an employee, an independent contractor must agree with the client on what the finished work product will be and then the contractor controls the means and manner of achieving the desired outcome. Secondly, an independent contractor offers services to the public at large, not just to one business, and is responsible for disbursing payments from the client, paying unreimbursed expenses, and providing his or her own tools to complete the job. Third, the relationship of the parties is often evidenced by a written agreement that specifies that the worker is an independent contractor and is not entitled to employee benefits; the services provided by the worker are not key to the business; and the relationship is not permanent.
As a general principle of employment law, in the United States, there is a difference between an agent and an independent contractor. The default status of a worker is an employee unless specific guidelines are met, which can be determined by the ABC test. Thus, clarifying whether someone who performs work is an independent contractor or an employee from the beginning, and treating them accordingly, can save a company from trouble later on.
Provided key circumstances, including ones such as that the worker is paid regularly, follows set hours of work, is supplied with tools from the employer, is closely monitored by the employer, acting on behalf of the employer, only works for one employer at a time, they are considered an employee, and the employer will generally be liable for their actions and be obliged to give them benefits. Similarly, the employer is the owner of any invention created by an employee “hired to invent,” even in the absence of an assignment of inventions. In contrast, a company commissioning a work by an independent contractor will not own the copyright unless the company secures either a written contract stating that it is a “work made for hire” or a written assignment of the copyright. In order to stay protected and avoid lawsuits, an employer has to be aware of that distinction.
Employer–worker relationship
Employer and managerial control within an organization rests at many levels and has important implications for staff and productivity alike, with control forming the fundamental link between desired outcomes and actual processes. Employers must balance interests such as decreasing wage constraints with a maximization of labor productivity in order to achieve a profitable and productive employment relationship.
Labor acquisition / hiring
The main ways for
employers to find workers and for people to find employers are via jobs listings in newspapers (via
classified advertising) and online, also called
job boards. Employers and job seekers also often find each other via professional
recruitment consultants which receive a
commission from the employer to find, screen and select suitable candidates. However, a study has shown that such consultants may not be reliable when they fail to use established principles in selecting employees.
A more traditional approach is with a "Help Wanted"
sign in the establishment (usually hung on a window or door or placed on a store counter).
Evaluating different employees can be quite laborious but setting up different techniques to analyze their skills to measure their talents within the field can be best through
assessments. Employer and potential employee commonly take the additional step of getting to know each other through the process of a
job interview.
Training and development
Training and development
Training and development involve improving the effectiveness of organizations and the individuals and teams within them. Training may be viewed as related to immediate changes in organizational effectiveness via organized instruction, while devel ...
refers to the employer's effort to equip a newly hired employee with the necessary skills to perform at the job, and to help the employee grow within the organization. An appropriate level of training and development helps to improve employee's
job satisfaction
Job satisfaction, employee satisfaction or work satisfaction is a measure of workers' contentedness with their job, whether they like the job or individual aspects or facets of jobs, such as nature of work or supervision. Job satisfaction can be ...
.
Remuneration
There are many ways that employees are paid, including by hourly wages, by
piecework
Piece work (or piecework) is any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed, regardless of time.
Context
When paying a worker, employers can use various methods and combinations of ...
, by yearly
salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
F ...
, or by
gratuities (with the latter often being combined with another form of payment). In sales jobs and real estate positions, the employee may be paid a
commission, a percentage of the value of the goods or services that they have sold. In some fields and professions (''e.g.'', executive jobs), employees may be eligible for a bonus if they meet certain targets. Some executives and employees may be paid in
shares or
stock options, a compensation approach that has the added benefit, from the company's point of view, of helping to align the interests of the compensated individual with the performance of the company.
Under the
faithless servant
The faithless servant doctrine is a doctrine under the laws of a number of states in the United States, and most notably New York State law, pursuant to which employees who act unfaithfully towards their employers must forfeit to their employers a ...
doctrine, a
doctrine
Doctrine (from la, doctrina, meaning "teaching, instruction") is a codification of beliefs or a body of teachings or instructions, taught principles or positions, as the essence of teachings in a given branch of knowledge or in a belief syste ...
under the laws of a number of states in the United States, and most notably
New York State law, an employee who acts unfaithfully towards his employer must forfeit all of the compensation he received during the period of his disloyalty.
Employee benefits
Employee benefits are various non-wage compensation provided to employees in addition to their wages or salaries. The benefits can include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits. In some cases, such as with workers employed in remote or isolated regions, the benefits may include meals. Employee benefits can improve the relationship between employee and employer and lowers staff turnover.
Organizational justice
Organizational justice
Greenberg (1987) introduced the concept of organizational justice with regard to how an employee judges the behavior of the organization and the employee's resulting attitude and behaviour. For example, if a firm makes redundant half of the worker ...
is an employee's perception and judgement of employer's treatment in the context of fairness or justice. The resulting actions to influence the employee-employer relationship is also a part of organizational justice.
Workforce organizing
Employees can organize into trade or
labor unions, which represent the workforce to collectively bargain with the management of organizations about working, and contractual conditions and services.
Ending employment
Usually, either an employee or employer may end the relationship at any time, often subject to a certain notice period. This is referred to as
at-will employment. The contract between the two parties specifies the responsibilities of each when ending the relationship and may include requirements such as notice periods,
severance pay, and security measures.
A contract forbidding an employee from leaving their employment, under penalty of a
surety bond, is referred to as an
employment bond
An employment bond is a contract requiring that an employee continue to work for their employer for a specified period, under penalty of a monetary forfeiture to the employer. Such contracts and associated surety bonds are similar to indentured s ...
. In some professions, notably teaching, civil servants, university professors, and some orchestra jobs, some employees may have
tenure
Tenure is a category of academic appointment existing in some countries. A tenured post is an indefinite academic appointment that can be terminated only for cause or under extraordinary circumstances, such as financial exigency or program disco ...
, which means that they cannot be dismissed at will. Another type of termination is a
layoff.
Wage labor
![Rebar worker](https://upload.wikimedia.org/wikipedia/commons/0/05/Rebar_worker.jpg)
Wage labor is the
socioeconomic
Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern societies progress, stagnate, or regress because of their l ...
relationship between a
worker and an employer, where the worker sells their
labor
Labour or labor may refer to:
* Childbirth, the delivery of a baby
* Labour (human activity), or work
** Manual labour, physical work
** Wage labour, a socioeconomic relationship between a worker and an employer
** Organized labour and the la ...
under a formal or informal employment
contract
A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...
. These transactions usually occur in a
labor market where
wage
A wage is payment made by an employer to an employee for work done in a specific period of time. Some examples of wage payments include compensatory payments such as ''minimum wage'', '' prevailing wage'', and ''yearly bonuses,'' and remune ...
s are market-determined.
In exchange for the wages paid, the work product generally becomes the
undifferentiated property of the employer, except for special cases such as the vesting of
intellectual property
Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, cop ...
patents in the United States where
patent rights
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...
are
usually vested in the original personal inventor. A wage laborer is a person whose primary means of income is from the selling of his or her labor in this way.
In modern mixed economies such as that of the
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
countries, it is currently the dominant form of work arrangement. Although most work occurs following this structure, the wage work arrangements of
CEOs
Kea ( el, Κέα), also known as Tzia ( el, Τζια) and in antiquity Keos ( el, Κέως, la, Ceos), is a Greek island in the Cyclades archipelago in the Aegean Sea. Kea is part of the Kea-Kythnos regional unit.
Geography
It is the island of ...
, professional employees, and professional contract workers are sometimes conflated with
class assignments, so that "wage labor" is considered to apply only to unskilled, semi-skilled or
manual labor
Manual labour (in Commonwealth English, manual labor in American English) or manual work is physical work done by humans, in contrast to labour by machines and working animals. It is most literally work done with the hands (the word ''manual ...
.
Wage slavery
Wage labor, as institutionalized under today's market economic systems, has been criticized,
[.] especially by
socialists
Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the eco ...
,
[.][.][.] using the
pejorative
A pejorative or slur is a word or grammatical form expressing a negative or a disrespectful connotation, a low opinion, or a lack of respect toward someone or something. It is also used to express criticism, hostility, or disregard. Sometimes, a ...
term
wage slavery
Wage slavery or slave wages refers to a person's dependence on wages (or a salary) for their livelihood, especially when wages are low, treatment and conditions are poor, and there are few chances of upward mobility.
The term is often us ...
.
Socialists draw parallels between the trade of
labor
Labour or labor may refer to:
* Childbirth, the delivery of a baby
* Labour (human activity), or work
** Manual labour, physical work
** Wage labour, a socioeconomic relationship between a worker and an employer
** Organized labour and the la ...
as a commodity and
slavery
Slavery and enslavement are both the state and the condition of being a slave—someone forbidden to quit one's service for an enslaver, and who is treated by the enslaver as property. Slavery typically involves slaves being made to perf ...
.
Cicero
Marcus Tullius Cicero ( ; ; 3 January 106 BC – 7 December 43 BC) was a Roman statesman, lawyer, scholar, philosopher, and academic skeptic, who tried to uphold optimate principles during the political crises that led to the esta ...
is also known to have suggested such parallels.
The American philosopher
John Dewey posited that until "
industrial feudalism" is replaced by "
industrial democracy
Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decisi ...
", politics will be "the shadow cast on society by big business".
Thomas Ferguson has postulated in his
investment theory of party competition The Investment theory of party competition is a political theory developed by Thomas Ferguson, Emeritus Professor of Political Science at the University of Massachusetts Boston. The theory focuses on how business elites, not voters, play the leadin ...
that the undemocratic nature of economic institutions under capitalism causes elections to become occasions when blocs of investors coalesce and compete to control the state plus cities.
[.]
Employment contract
Australia
Australian employment has been governed by the
Fair Work Act
The ''Fair Work Act 2009'' (Cth) is an Act of the Parliament of Australia, passed by the Rudd Government to reform the industrial relations system of Australia. It replaced the Howard Government's WorkChoices legislation, it established Fai ...
since 2009.
Bangladesh
Bangladesh Association of International Recruiting Agencies (
BAIRA) is an association of national level with its international reputation of co-operation and welfare of the migrant workforce as well as its approximately 1200 members agencies in collaboration with and support from the Government of Bangladesh.
Canada
In the
Canadian province of
Ontario
Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central C ...
, formal complaints can be brought to the
Ministry of Labour
The Ministry of Labour ('' UK''), or Labor ('' US''), also known as the Department of Labour, or Labor, is a government department responsible for setting labour standards, labour dispute mechanisms, employment, workforce participation, training, a ...
. In the province of
Quebec
Quebec ( ; )According to the Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is one of the thirtee ...
, grievances can be filed with th
Commission des normes du travail
Germany
Two of the prominent examples of work and employment contracts in Germany are the Werksvertrag or the Arbeitsvertrag, which is a form of Dienstleistungsvertrag (service-oriented contract). An Arbeitsvertrag can also be temporary, whereas a temporary worker is working under Zeitarbeit or Leiharbeit. Another employment setting is Arbeitnehmerüberlassung (ANÜ).
India
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
has options for a fixed term contract or a permanent contract. Both contracts are entitled to minimum wages, fixed working hours and social security contributions.
Pakistan
Pakistan
Pakistan ( ur, ), officially the Islamic Republic of Pakistan ( ur, , label=none), is a country in South Asia. It is the world's fifth-most populous country, with a population of almost 243 million people, and has the world's second-lar ...
has no contract Labor, Minimum Wage and Provident Funds Acts. Contract labor in Pakistan must be paid minimum wage and certain facilities are to be provided to labor. However, the Acts are not yet fully implemented.
Philippines
In the
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
, employment is regulated by the
Department of Labor and Employment
The Department of Labor and Employment ( fil, Kagawaran ng Paggawa at Empleyo}, commonly abbreviated as DOLE) is one of the executive departments of the Philippine government mandated to formulate policies, implement programs and services, an ...
.
Sweden
According to Swedish law, there are three types of employment.
* Test employment (''swe: Provanställning''), where the employer hires a person for a test period of 6 months maximum. The employment can be ended at any time without giving any reason. This type of employment can be offered only once per employer and in employee combination. Usually, a time limited or normal employment is offered after a test employment.
* Time limited employment (''swe: Tidsbegränsad anställning''). The employer hires a person for a specified time. Usually, they are extended for a new period. Total maximum two years per employer and employee combination, then it automatically counts as a normal employment.
* Normal employment (''swe: Tillsvidareanställning / Fast anställning''), which has no time limit (except for retirement etc.). It can still be ended for two reasons: personal reason, immediate end of employment only for strong reasons such as crime, or lack of work tasks (''swe: Arbetsbrist''), cancellation of employment, usually because of bad income for the company. There is a cancellation period of 1–6 months, and rules for how to select employees, basically those with shortest employment time shall be cancelled first.
There are no laws about
minimum salary in Sweden. Instead, there are agreements between employer organizations and trade unions about minimum salaries, and other employment conditions.
There is a type of employment contract which is common but not regulated in law, and that is Hour employment (''swe: Timanställning''), which can be Normal employment (unlimited), but the work time is unregulated and decided per immediate need basis. The employee is expected to be answering the phone and come to work when needed, e.g. when someone is ill and absent from work. They will receive salary only for actual work time and can in reality be fired for no reason by not being called anymore. This type of contract is common in the public sector.
United Kingdom
![Callcentreterminal](https://upload.wikimedia.org/wikipedia/commons/0/0e/Callcentreterminal.JPG)
In the United Kingdom, employment contracts are categorized by the government into the following types:
*
Fixed-term contract A fixed-term contract is a contractual relationship between an employee and an employer that lasts for a specified period. These contracts are usually regulated by countries' labor laws, to ensure that employers still fulfill basic labour rights reg ...
: last for a certain length of time, are set in advance, end when a specific task is completed, ends when a specific event takes place.
*
Full-time
Full-time or Full Time may refer to:
* Full-time job, employment in which a person works a minimum number of hours defined as such by their employer
* Full-time mother, a woman whose work is running or managing her family's home
* Full-time fat ...
or
part-time contract
A part-time job is a form of employment that carries fewer hours per week than a full-time job. They work in shifts. The shifts are often rotational. Workers are considered to be part-time if they commonly work fewer than 30 hours per week. Accor ...
: has no defined length of time, can be terminated by either party, is to accomplish a specific task, specified number of hours.
* Agency staff
*
Freelancers,
Consultants and
Contractors
A general contractor, main contractor or prime contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of ...
*
Zero-hour contract
A zero-hour contract is a type of employment contract between an employer and an employee whereby the employer is not obliged to provide any minimum number of working hours to the employee. The term 'zero-hour contract' is primarily used in the ...
s
United States
![EmploymentUSbranchFredgr](https://upload.wikimedia.org/wikipedia/commons/8/87/EmploymentUSbranchFredgr.png)
For purposes of U.S. federal income tax withholding, 26 U.S.C. § 3401(c) provides a definition for the term "employee" specific to chapter 24 of the
Internal Revenue Code:
![Government employment as % of total employment in EU](https://upload.wikimedia.org/wikipedia/commons/5/59/Government_employment_as_%25_of_total_employment_in_EU.jpg)
"For purposes of this chapter, the term "employee" includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term "employee" also includes an officer of a corporation." This definition does not exclude all those who are commonly known as 'employees'. "Similarly, Latham’s instruction which indicated that under 26 U.S.C. § 3401(c) the category of ‘employee’ does not include privately employed wage earners is a preposterous reading of the statute. It is obvious that within the context of both statutes the word ‘includes’ is a term of enlargement not of limitation, and the reference to certain entities or categories is not intended to exclude all others."
Employees are often contrasted with
independent contractors
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any oth ...
, especially when there is dispute as to the worker's entitlement to have matching taxes paid,
workers compensation, and
unemployment insurance
Unemployment benefits, also called unemployment insurance, unemployment payment, unemployment compensation, or simply unemployment, are payments made by authorized bodies to unemployed people. In the United States, benefits are funded by a comp ...
benefits. However, in September 2009, the court case of ''Brown v. J. Kaz, Inc.'' ruled that independent contractors are regarded as employees for the purpose of
discrimination laws if they work for the employer on a regular basis, and said employer directs the time, place, and manner of employment.
In non-union work environments, in the United States, unjust termination complaints can be brought to the
United States Department of Labor
The United States Department of Labor (DOL) is one of the executive departments of the U.S. federal government. It is responsible for the administration of federal laws governing occupational safety and health, wage and hour standards, unemploy ...
.
Labor unions are legally recognized as representatives of workers in many industries in the United States. Their activity today centers on
collective bargaining
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The ...
over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over violations of contract provisions. Larger unions also typically engage in lobbying activities and electioneering at the state and federal level.
Most unions in America are aligned with one of two larger umbrella organizations: the
AFL–CIO
The American Federation of Labor and Congress of Industrial Organizations (AFL–CIO) is the largest federation of unions in the United States. It is made up of 56 national and international unions, together representing more than 12 million ac ...
created in 1955, and the
Change to Win Federation
The Strategic Organizing Center (SOC), formerly known as the Change to Win Federation (CtW) is a coalition of North American labor unions originally formed in 2005 as an alternative to the AFL–CIO. The coalition is associated with strong advoca ...
which split from the AFL–CIO in 2005. Both advocate policies and legislation on behalf of workers in the United States and Canada, and take an active role in politics. The AFL–CIO is especially concerned with global trade issues.
American business theorist
Jeffrey Pfeffer
Jeffrey Pfeffer (born July 23, 1946, St. Louis, Missouri) is an American business theorist and the Thomas D. Dee II Professor of Organizational Behavior at the Graduate School of Business, Stanford University, and is considered one of today's mo ...
posits that contemporary employment practices and employer commonalities in the United States, including toxic working environments, job insecurity, long hours and increased performance pressure from management, are responsible for 120,000 excess deaths annually, making the workplace the fifth leading cause of death in the United States.
Age-related issues
Younger age workers
![US youth employment rate, both genders](https://upload.wikimedia.org/wikipedia/commons/1/16/US_youth_employment_rate%2C_both_genders.png)
Young workers are at higher risk for
occupational injury
An occupational injury is bodily damage resulting from working. The most common organs involved are the spine, hands, the head, lungs, eyes, skeleton, and skin. Occupational injuries can result from exposure to occupational hazards (physical, c ...
and face certain
occupational hazard
An occupational hazard is a hazard experienced in the workplace. This encompasses many types of hazards, including chemical hazards, biological hazards (biohazards), psychosocial hazards, and physical hazards. In the United States, the Nation ...
s at a higher rate; this is generally due to their employment in high-risk industries. For example, in the United States, young people are injured at work at twice the rate of their older counterparts.
These workers are also at higher risk for
motor vehicle accidents at work, due to less work experience, a lower use of seat belts, and higher rates of distracted driving.
To mitigate this risk, those under the age of 17 are restricted from certain types of driving, including transporting people and goods under certain circumstances.
High-risk industries for young workers include agriculture, restaurants, waste management, and mining.
In the United States, those under the age of 18 are restricted from certain jobs that are deemed dangerous under the
Fair Labor Standards Act.
Youth employment programs are most effective when they include both theoretical classroom training and hands-on training with work placements.
In the conversation of employment among younger aged workers, youth unemployment has also been monitored.
Youth unemployment
Youth unemployment is the situation of young people who are looking for a job but cannot find a job, with the age range being defined by the United Nations as 15–24 years old. An unemployed person is defined as someone who does not have a job ...
rates tend to be higher than the adult rates in every country in the world.
Older age workers
Those older than the statutory defined retirement age may continue to work, either out of enjoyment or necessity. However, depending on the nature of the job, older workers may need to transition into less-physical forms of work to avoid injury. Working past retirement age also has positive effects, because it gives a sense of purpose and allows people to maintain social networks and activity levels. Older workers are often found to be discriminated against by employers.
Working poor
![Worker, Dhaka, Bangladesh](https://upload.wikimedia.org/wikipedia/commons/d/d0/Worker%2C_Dhaka%2C_Bangladesh.jpg)
Employment is no guarantee of escaping
poverty, the
International Labour Organization
The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards. Founded in October 1919 under the League of Nations, it is the first and o ...
(ILO) estimates that as many as 40% of workers are poor, not earning enough to keep their families above the $2 a day
poverty line
The poverty threshold, poverty limit, poverty line or breadline is the minimum level of income deemed adequate in a particular country. The poverty line is usually calculated by estimating the total cost of one year's worth of necessities for t ...
.
[Claire Melamed, Renate Hartwig and Ursula Grant 2011]
Jobs, growth and poverty: what do we know, what don't we know, what should we know?
London: Overseas Development Institute
ODI (formerly the 'Overseas Development Institute') is a global affairs think tank, founded in 1960. Its mission is "to inspire people to act on injustice and inequality through collaborative research and ideas that matter for people and the ...
For instance, in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
most of the chronically poor are wage earners in formal employment, because their jobs are insecure and low paid and offer no chance to accumulate wealth to avoid risks.
[ According to the ]UNRISD
The United Nations Research Institute for Social Development (UNRISD) is "an autonomous research institute within the United Nations that undertakes multidisciplinary research and policy analysis on the social dimensions of contemporary develo ...
, increasing labor productivity appears to have a negative impact on job creation: in the 1960s, a 1% increase in output per worker was associated with a reduction in employment growth of 0.07%, by the first decade of this century the same productivity increase implies reduced employment growth by 0.54%.[ Both increased employment opportunities and increased labor productivity (as long as it also translates into higher wages) are needed to tackle poverty. Increases in employment without increases in productivity leads to a rise in the number of "working poor", which is why some experts are now promoting the creation of "quality" and not "quantity" in labor market policies.][ This approach does highlight how higher productivity has helped reduce poverty in ]East Asia
East Asia is the eastern region of Asia, which is defined in both Geography, geographical and culture, ethno-cultural terms. The modern State (polity), states of East Asia include China, Japan, Mongolia, North Korea, South Korea, and Taiwan. ...
, but the negative impact is beginning to show.[ In ]Vietnam
Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making i ...
, for example, employment growth has slowed while productivity growth has continued.[ Furthermore, productivity increases do not always lead to increased wages, as can be seen in the ]United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
, where the gap between productivity and wages has been rising since the 1980s.[
Researchers at the ]Overseas Development Institute
ODI (formerly the 'Overseas Development Institute') is a global affairs think tank, founded in 1960. Its mission is "to inspire people to act on injustice and inequality through collaborative research and ideas that matter for people and the ...
argue that there are differences across economic sector
One classical breakdown of economic activity distinguishes three sectors:
* Primary: involves the retrieval and production of raw-material commodities, such as corn, coal, wood or iron. Miners, farmers and fishermen are all workers in the ...
s in creating employment that reduces poverty.[ 24 instances of growth were examined, in which 18 reduced poverty. This study showed that other sectors were just as important in reducing ]unemployment
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the refere ...
, such as manufacturing
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...
.[ The ]services sector
The tertiary sector of the economy, generally known as the service sector, is the third of the three economic sectors in the three-sector model (also known as the economic cycle). The others are the primary sector (raw materials) and the second ...
is most effective at translating productivity growth into employment growth. Agriculture
Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...
provides a safety net for jobs and economic buffer when other sectors are struggling.[
]
Models of the employment relationship
Scholars conceptualize the employment relationship in various ways. A key assumption is the extent to which the employment relationship necessarily includes conflicts of interests between employers and employees, and the form of such conflicts. In economic theorizing, the labor market mediates all such conflicts such that employers and employees who enter into an employment relationship are assumed to find this arrangement in their own self-interest. In human resource management theorizing, employers and employees are assumed to have shared interests (or a unity of interests, hence the label “unitarism”). Any conflicts that exist are seen as a manifestation of poor human resource management policies or interpersonal clashes such as personality conflicts, both of which can and should be managed away. From the perspective of pluralist industrial relations, the employment relationship is characterized by a plurality of stakeholders with legitimate interests (hence the label “pluralism), and some conflicts of interests are seen as inherent in the employment relationship (e.g., wages v. profits). Lastly, the critical paradigm emphasizes antagonistic conflicts of interests between various groups (e.g., the competing capitalist and working classes
The working class (or labouring class) comprises those engaged in manual-labour occupations or industrial work, who are remunerated via waged or salaried contracts. Working-class occupations (see also " Designation of workers by collar colou ...
in a Marxist framework) that are part of a deeper social conflict of unequal power relations. As a result, there are four common models of employment:
# Mainstream economics: employment is seen as a mutually advantageous transaction in a free market between self-interested legal and economic equals
# Human resource management (unitarism): employment is a long-term partnership of employees and employers with common interests
# Pluralist industrial relations: employment is a bargained exchange between stakeholders with some common and some competing economic interests and unequal bargaining power due to imperfect labor markets
# Critical industrial relations
Industrial relations or employment relations is the multidisciplinary academic field that studies the employment relationship; that is, the complex interrelations between employers and employees, labor/trade
unions, employer organizations, ...
: employment is an unequal power relation between competing groups that is embedded in and inseparable from systemic inequalities throughout the socio-politico-economic system.
These models are important because they help reveal why individuals hold differing perspectives on human resource management policies, labor unions, and employment regulation. For example, human resource management policies are seen as dictated by the market in the first view, as essential mechanisms for aligning the interests of employees and employers and thereby creating profitable companies in the second view, as insufficient for looking out for workers’ interests in the third view, and as manipulative managerial tools for shaping the ideology and structure of the workplace in the fourth view.
Academic literature
Literature on the employment impact of economic growth and on how growth is associated with employment at a macro, sector and industry level was aggregated in 2013.[Yurendra Basnett and Ritwika Sen, What do empirical studies say about economic growth and job creation in developing countries? Economic and private sector professional evidence and applied knowledge services https://partnerplatform.org/?7ljwndv4]
Researchers found evidence to suggest growth in manufacturing and services have good impact on employment. They found GDP growth on employment in agriculture to be limited, but that value-added growth had a relatively larger impact. The impact on job creation by industries/economic activities as well as the extent of the body of evidence and the key studies. For extractives, they again found extensive evidence suggesting growth in the sector has limited impact on employment. In textiles, however, although evidence was low, studies suggest growth there positively contributed to job creation. In agri-business and food processing, they found impact growth to be positive.
They found that most available literature focuses on OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
and middle-income countries somewhat, where economic growth impact has been shown to be positive on employment. The researchers didn't find sufficient evidence to conclude any impact of growth on employment in LDCs despite some pointing to the positive impact, others point to limitations. They recommended that complementary policies are necessary to ensure economic growth's positive impact on LDC employment. With trade, industry and investment, they only found limited evidence of positive impact on employment from industrial and investment policies and for others, while large bodies of evidence does exist, the exact impact remains contested.
Researchers have also explored the relationship between employment and illicit activities. Using evidence from Africa, a research team found that a program for Liberian ex-fighters reduced work hours on illicit activities. The employment program also reduced interest in mercenary work in nearby wars. The study concludes that while the use of capital inputs or cash payments for peaceful work created a reduction in illicit activities, the impact of training alone is rather low.
Globalization and employment relations
The balance of economic efficiency and social equity is the ultimate debate in the field of employment relations
Industrial relations or employment relations is the multidisciplinary academic field that studies the employment relationship; that is, the complex interrelations between employers and employees, labor/trade
unions, employer organizations, a ...
.[Budd, John W. (2004) ''Employment with a Human Face: Balancing Efficiency, Equity, and Voice'', Cornell University Press.] By meeting the needs of the employer; generating profits to establish and maintain economic efficiency; whilst maintaining a balance with the employee and creating social equity that benefits the worker so that he/she can fund and enjoy healthy living; proves to be a continuous revolving issue in westernized societies.
Globalization
Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...
has affected these issues by creating certain economic factors that disallow or allow various employment issues. Economist Edward Lee (1996) studies the effects of globalization and summarizes the four major points of concern that affect employment relations:
# International competition, from the newly industrialized countries
The category of newly industrialized country (NIC), newly industrialized economy (NIE) or middle income country is a socioeconomic classification applied to several countries around the world by political scientists and economists. They represent ...
, will cause unemployment growth and increased wage disparity for unskilled workers in industrialized countries. Imports from low-wage countries exert pressure on the manufacturing sector in industrialized countries and foreign direct investment (FDI) is attracted away from the industrialized nations, towards low-waged countries.
# Economic liberalization will result in unemployment and wage inequality in developing countries. This happens as job losses in uncompetitive industries outstrip job opportunities in new industries.
# Workers will be forced to accept worsening wages and conditions, as a global labor market results in a “race to the bottom”. Increased international competition creates a pressure to reduce the wages and conditions of workers.
# Globalization reduces the autonomy of the nation state. Capital is increasingly mobile and the ability of the state to regulate economic activity is reduced.
What also results from Lee's (1996) findings is that in industrialized countries an average of almost 70 per cent of workers are employed in the service sector, most of which consists of non-tradable activities. As a result, workers are forced to become more skilled and develop sought after trades, or find other means of survival. Ultimately this is a result of changes and trends of employment, an evolving workforce
The workforce or labour force is a concept referring to the pool of human beings either in employment or in unemployment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic reg ...
, and globalization that is represented by a more skilled and increasing highly diverse labor force, that are growing in non standard forms of employment (Markey, R. et al. 2006).
Alternatives
Subcultures
Various youth subcultures have been associated with not working, such as the hippie subculture in the 1960s and 1970s (which endorsed the idea of "dropping out" of society) and the punk subculture.
Post-secondary education
One of the alternatives to work is engaging in post-secondary education at a college
A college (Latin: ''collegium'') is an educational institution or a constituent part of one. A college may be a degree-awarding tertiary educational institution, a part of a collegiate or federal university, an institution offerin ...
, university
A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United States ...
or professional school. One of the major costs of obtaining a post-secondary education is the opportunity cost of forgone wages due to not working. At times when jobs are hard to find, such as during recessions, unemployed individuals may decide to get post-secondary education, because there is less of an opportunity cost.
Social assistance
In some countries, individuals who are not working can receive social assistance
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
support (e.g., welfare
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifical ...
or food stamps) to enable them to rent housing, buy food, repair or replace household goods, maintenance of children and observe social customs that require financial expenditure.
Volunteerism
Workers who are not paid wages, such as volunteers
Volunteering is a voluntary act of an individual or group freely giving time and labor for community service. Many volunteers are specifically trained in the areas they work, such as medicine, education, or emergency rescue. Others serve ...
who perform tasks for charities, hospitals or not-for-profit organizations, are generally not considered employed. One exception to this is an internship
An internship is a period of work experience offered by an organization for a limited period of time. Once confined to medical graduates, internship is used practice for a wide range of placements in businesses, non-profit organizations and gover ...
, an employment situation in which the worker receives training or experience (and possibly college credit) as the chief form of compensation.
Indentured servitude and slavery
Those who work under obligation for the purpose of fulfilling a debt, such as indentured servant
Indentured servitude is a form of labor in which a person is contracted to work without salary for a specific number of years. The contract, called an "indenture", may be entered "voluntarily" for purported eventual compensation or debt repaymen ...
s, or as property of the person or entity they work for, such as slaves, do not receive pay for their services and are not considered employed. Some historians suggest that slavery is older than employment, but both arrangements have existed for all recorded history. Indentured servitude and slavery are not considered compatible with human rights
Human rights are moral principles or normsJames Nickel, with assistance from Thomas Pogge, M.B.E. Smith, and Leif Wenar, 13 December 2013, Stanford Encyclopedia of PhilosophyHuman Rights Retrieved 14 August 2014 for certain standards of hu ...
or with democracy
Democracy (From grc, δημοκρατία, dēmokratía, ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people have the authority to deliberate and decide legislation ("direct democracy"), or to choo ...
.
Self-employment
See also
Notes and references
General bibliography
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External links
Business Link
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