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SOCIAL STUDIES: FORM 5

THE LABOUR FORCE

The tern labour force refers to those people between the ages of 16 and 65 years who are capable

and are willing to work. It must be noted that not all people between the ages of 16-65 are in the

labour force. Individuals within the age range may be unable to offer themselves for work for a

variety of reason such as chronic illnesses, mental instability, imprisonment, lack of skills or

simply do not want to work.

THE IMPORTANCE OF WORK

Work is important for individuals because it allows them to earn an income which means they

can:

 Satisfy their basic needs

 Maintain and improve their standard of living (which involves purchasing goods and

services)

 Be economically independent

 Save money for unforeseen situations

EMPLOYMENT, UNEMPLOYMENT, UNDEREMPLOYMENT AND SELF-

EMPLOYED

A person is considered to be employed if that person has a full-time job and obtains a salary or

wage.

Unemployment refers to a situation where a person is in the labour force, is capable and willing

to work but has not yet found a job.

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Underemployed is when a person can only find work which does not make full use of their

qualifications or experience or they work for less than the standard number of hours per day or

week.

Self-employed is when someone works for themselves.

TYPES OF WORK SECTORS/INDUSTRY

The three sectors of an economy are primary, secondary and tertiary. The primary sector is

concerned with the extraction of raw materials or the production of natural resources. The

secondary sector uses these raw materials and includes construction, manufacturing and

processing industries. The tertiary sector involves all those businesses in the other two sectors to

operate and those that offer services to members of the public.

Types of Examples of industry Examples of activity Examples of

industry workers

Primary -Mining -Bauxite mining -Miners

(rock with high
aluminum content to
make steel, cement
etc)
-Quarrying -Excavator operators
-Gypsum quarrying
-Drilling -Drill workers
-Oil drilling
-Agriculture -Farmers
-Crop production
-Aquaculture -Fish farmers
-Fish farming
Secondary -Manufacturing -Furniture production -Craftsman

-Construction -Housing -Mason

construction

-Processing -Food processing -Food packagers

Tertiary -Commercial services -Banking -Bank tellers

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-Transport -Drivers

-Social services - Health -Nurses

-Education -Teachers

FACTORS INFLUENCING EMPLOYMENT, UNEMPLOYMENT AND

UNDEREMPLOYMENT

1. Availability and use of capital- Capital is the amount of money that a company has to

spend on developing and expanding its business. The government can also invest capital

in the hope of stimulating employment. The amount of capital available to a country

depends on how well the economy is performing and whether it is growing, stagnant or

shrinking. The money a government has to spend on employment and training schemes

will also influence the number of people in work. Sometimes, an economic downturn

may mean that a government reduces its spending on health care, education and social

services. This may also lead to loss of jobs.

2. Skills demanded vs skills available- Many people train in a skill that is in demand in

their country in order to improve their chances of gaining employment. This creates a

delicate balance of supply and demand. For example, if a country has more trained nurses

than nursing jobs, then some of them will be unemployed. Sometimes a country has the

opposite problem and there is a shortage of skilled workers in a particular area. This is a

result of migration from an area. In this case, a short-term solution might be to encourage

workers from abroad to fill these skilled gaps. In the long term, governments may

promote training in particular areas for citizens through awareness-raising and bursaries.

Additionally, changes in technology may affect what skills are needed from workers. As

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production are increasingly managed by machines, manufacturing jobs are decreasing in

the Caribbean, although more engineers may be needed to maintain these machines.

3. Market, trading patterns and preferences- Markets are the potential customers or

investors in a product or service. Investors put money into a business with the expectation

that the business will be profitable and that they will make money on their investment. A

business plan must identify a good market for its product or it must create demand

through advertising. Investors want assurances that a company will do well. Some

industries in the Caribbean have declined overtime as markets for certain products have

declined, technology has changed or manufacturing has moved overseas. People can

therefore lose their jobs as a result of changes in the market condition.

Trading patterns and preferences are the patterns of investment in and purchasing of

products, businesses and stock and shares which affect the growth of businesses. Stocks

and shares are the part of business that an investor owns through the money that he or she

has contributed to the business. The value of stocks and shares varies depending on how

profitable a business is and the state of the global economy. If stock markets fall, this can

affect the profit that businesses make. If companies lose money, they may redundancies

ie. Take away people’s jobs. Generally, the bigger the business and the more investors it

has, the more employment it can offer.

4. Technology- Technology changes quickly and businesses must keep up in order to

complete with other businesses and communicate with customers and clients around the

world. As technology advances, it continues to have an impact on employment in terms

of:

 The number of job opportunities available

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 The level and type of skill required of workers

New technology can replace human workers in certain circumstances, for example in

factory automation or agricultural mechanization. It can also create new types of jobs

such as computer technicians. Problems arise in this situation because skills available

do not necessarily match skills required.

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TYPES OF UNEMPLOYMENT

The main types of unemployment are:

Type of unemployment Cause

Seasonal Seasonal unemployment occurs when there are particular

periods or seasons in the year when demand for workers

responds to certain events such as harvest. For example,

fewer jobs are available after a harvest or at the end of a

tourist season.

Frictional Short term unemployment usually caused when;

a) Individuals enter the labour market for the first

time after completing school.

b) Individuals must search for sometime before

finding satisfactory jobs.

c) Individuals change jobs and are unemployed for

some time as they wait to start the next job.

d) Job seekers may be unaware of vacancies that exist.

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Structural Economic growth leads to main change in sector.

People who were employed in the previous industry find it

hard to get a job in the newly booming industry.

WHY?

a) Lack skills in new industry

b) New industry cannot absorb all the labour from

previous industry.
Technical/Technological
Technology is introduced to the industry thus taking the

place of human labour. If the labourer is unable to learn

new skills to adjust, workers will become unemployed.

Cyclical Cyclical unemployment is the impact of economic

recession or expansion on the total unemployment rate.

Cyclical unemployment generally rises during recessions

and falls during economic expansion. This type of

unemployment comes about with natural changes in the

economic cycle. When there is economic growth and

expansion, there is a consumer demand and consumer

spending increase therefore creating higher demand for

labour. Subsequently, during the period of recession,

consumer demand and consumer spending decreases,

reducing the need for large amounts of labour.

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CAUSES OF UNEMPLOYMENT IN THE CARIBBEAN

1. The number of people entering the labour force every year surpasses the capacity of the

economies to generate additional employment.

2. The education system in the Caribbean is heavily academically oriented. As such,

thousands of secondary school graduates are qualified for positions as clerks, secretaries

and other white-collar jobs. These types of jobs are low on demand; thus, these graduates

remain unemployed.

3. Most Caribbean countries are small and therefore lack a large variety of physical

resources. This stifles their ability to create jobs in the manufacturing sector.

4. Capital intensives industries particularly in the industrial sectors are fast replacing labour

intensive ones.

5. Many Caribbean countries have turned to tourism primarily to create jobs for nationals.

However, in the building of hotels and guest houses, most of the furniture and equipment

are imported and meals prepared for the visitors in most hotels focus heavily on foreign

content. Thus, the job creation for this sector is not achieved.

WAYS OF REDUCING UNEMPLOYMENT

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1. The creation of industries is the most effective measure to reduce unemployment.

Through expanded government public works and greater industrialization, much can be

done to stop the growth of unemployment.

2. When one considers that man cannot survice without food, one realizes that the demand

for agriculture products will never cease. The agriculture sector therefore has a great

potential for creating jobs. The agriculture sector must consequently become a priority

for all governments by improving roads, water, electricity and other infrastructural

facilities.

3. The curricula in our schools should reflect an emphasis on technical/vocational subjects

such as welding, auto-mechanics, electrical installation, beauty culture etc. When

students are qualified in these areas, they can become self-employed.

4. The tourism sector has a great potential for creating jobs in a variety of occupations. The

Caribbean area with its various attractions should be marketed more vigorously. Increases

in tourists’ arrivals will result in more jobs for hotel employees, taxi-drivers, tour guides,

travel agencies, farmers etc.

5. Governments must control the high birthrate. A comprehensive education programme on

family planning must be vigorously pursued. A reduction in the population will

eventually lead to the reduction in unemployment.

PREPARATION FOR THE WORLD OF WORK

a) Choosing a job- Often the first-time people seriously consider their future career is when

they are approaching the end of their time in education or when they have to choose

particular subjects to study. Studying appropriate subjects is important but when

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considering a future career an individual should also give careful consideration to aspects

of his or her:

 Ambitions regarding lifestyle

 Personal preferences (interest, values)

 Personal characteristics (abilities, potential)

b) Procedures in securing employment- Most people, even if they become self-employed,

start off working for someone in order to gain experience and build up financial stability.

When looking for employment, there are a number of steps to go through.

i. Collect information on available job- Details of job vacancies can be found in a

variety of sources, including the advertisement pages of newspapers, company

websites, internet recruitment sites and recruitment agencies. In addition,

sometimes it is worth sending out speculative resumes or calling in to potential

employers to enquire about possible job opportunities.

ii. List assess available positions- Once information on potential jobs has been

collected, you can make informed decisions on what your next step should be.

Perhaps there are jobs that you have the skills and qualifications necessary to

apply for now or perhaps you will choose to study further to develop the

qualifications you need for the job you will like. There are other options too such

as taking on an apprenticeship that pays a modest amount whilst you learn the

skills of a trade. Another option is to volunteer within your chosen career in order

to gain some work experience. If a suitable job cannot be found at this stage, you

may start thinking about self-employment.

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iii. Thinking through the consequences- Possible jobs need to be assessed for

suitability, practically and interest. Ask yourself the questions when considering

the suitability of jobs:

 How much does the job pay? Will this cover my expenses and leave me

with some money left for wants/savings?

 How does the job match my skills, interest and qualifications?

 How near is the job to where I live? How much time and money will I

need to spend on travelling?

 What benefits (sick leave, casual leave, pension etc) does this job offer?

iv. Obtaining resources- This is gaining information by using resources such as

websites, humans (past or present employees etc).

c) Rights and responsibilities of workers- All employees should sign a contract of

employment or for casual work, agreeing to terms and conditions. A contract outlines

what is expected of employees as well as stating what employees can expect from their

employers. A contract should list the core responsibilities of the job as well as detailing

the salary, working hours, appraisal/notice periods, benefits of employees etc.

Rights and responsibility of workers

Rights Responsibilities

To be paid fairly for their agreed hours of To be productive for the hours stated on

work. their contract.

To be supported and equipped with the To fulfil the duties and responsibilities

tools needed to do their jobs. detailed in the contract.

To work in a safe and healthy environment. To work in a responsible manner, which

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keeps themselves and others safe.

To be treated with respect and courtesy at To respect and cooperate with other

work. workers.

To receive sick pay, holiday pay, and To be punctual and efficient and to avoid

maternity pay. unnecessary absence from work.

To be free to join a trade union. To protect confidential information.

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