By JOAO DOS REIS SILVA JUNIOR*
The precariat was and is a new reality in the scene of the exhaustion of capitalism that impoverishes, imposes hunger and destroys in order to accumulate
At the beginning of the 2030st century, leaders around the world made important commitments to make “the right to development a reality for all” and to free “the entire human race from want.” They set a goal of eliminating poverty and hunger globally by XNUMX, reflecting an expectation of unprecedented progress.
The World Bank report, which looks at the first 25 years of the third millennium, provides a detailed overview of the expectations and challenges facing developing economies in the XNUMXst century. The Global Economic Prospects provides a comprehensive review of economic performance and future projections, highlighting the urgent need for sustainable growth to improve the lives of millions.
According to the document, the projections for poverty and hunger up to 2030 are worrying. Unless there is a consistent increase in economic growth rates, only six of the current 26 countries considered low-income are expected to reach the middle-income classification by 2050. Furthermore, in 2030, it is estimated that there will still be 622 million people living in extreme poverty. Hunger and malnutrition will continue to affect approximately the same number of individuals, showing that the goals of eliminating poverty and hunger are far from being achieved.
Between 2010 and 2020, economic growth was uneven between emerging and developed economies, intensifying the debate on socioeconomic inequality. The Gini coefficient remained around 0,48, according to data from the World Bank; at the same time, the indexes in the OECD were close to 0,31.
Income distribution
Global income distribution has undergone several changes in recent decades. These changes occur differently in different regions and historical contexts, and can be analyzed using the Gini coefficient, a widely used tool to measure income inequality. This coefficient ranges from 0 (meaning total equality) to 1 (representing maximum inequality).
Between 1950 and 1970, the world experienced significant economic growth after the devastation of World War II. This period was marked by concerted efforts to rebuild and expand economies, especially in developed nations. During these years, several countries saw a significant reduction in income inequality. Data from the World Bank indicate that the Gini coefficient in many of these countries fell from around 0,40 to 0,30. This decline is attributed to policies focused on social welfare, increased opportunities in the industrial sector, and investments in infrastructure and education. A similar trend was also observed in OECD nations: the coefficient fell from approximately 0,35 to 0,25.
Emergence of the precariat
However, this scenario underwent significant changes from the 1980s and 1990s onwards. Economic globalization, market liberalization and the adoption of neoliberal policies contributed to an increase in income inequality in several parts of the world. Many industries moved their operations to countries where production costs were lower, while the number of well-paid jobs in developed countries decreased considerably. This phenomenon resulted in an increase in the Gini coefficient, which reached values close to 0,45 in several countries, according to data from the World Bank.
The OECD also recorded an increase in this index, reaching around 0,30 during this period. At the same time, trade unions changed their strategies of struggle, with institutional workers' representatives no longer taking to the streets, but negotiating. Between 2010 and 2020, there was uneven economic growth between emerging and developed countries. This period was characterized by the deepening of discussions on wage inequality, since the benefits of economic growth were not shared fairly among different population groups.
According to information from the World Bank, the Gini coefficient remained at around 0,48, while in the OECD the indexes were close to 0,31. This persistence in disparities reflects the complex interactions between factors that affect income distribution, including specific economic policies, technological innovations and market dynamics. Labor rights are under threat.
Per capita income
Per capita income varied over the time periods examined. In OECD member countries, there was a significant increase in per capita income between 1950 and 1970, during which many countries recorded average annual growth rates of around 3% to 4%. This expansion was catalyzed by a number of factors, including technological innovations, productivity improvements and the expansion of global markets.
In the following decades – more specifically in the 1980s and 1990s – increases in per capita income persisted, although at slightly lower rates, varying around 2% to 3% annually due to the changes that occurred.
The 2008 financial crisis had a significant impact on this outlook; however, there was a gradual recovery thereafter, with estimated annual rates of between 1% and 2%. Finally, from 2008 to 2020, there were steady recoveries in US per capita income, with annual rates similar to those seen previously, hovering around 2% to 3%.
In the context of the decade following the financial crisis mentioned above, it is noteworthy that many OECD nations managed to sustain annual growth in the range of 1% to 2%, despite the variations resulting from this event. It is important to note that trade unions in the OECD and North America underwent significant transformations in the period between 1950 and 2020.
Crisis 2008
The period between 2000 and 2010 was marked by a significant economic event: the 2008 global financial crisis. The effects of this crisis on income inequality varied according to the individual capacity of countries to deal with the resulting economic turbulence. Some countries saw substantial increases in inequality; in extreme cases, the Gini coefficient reached values close to 0,50, according to the World Bank. In the OECD, the impacts were also felt, with the coefficient reaching as high as 0,32 in some countries.
The economic recovery process after this crisis proved to be slow and challenging, highlighting the weaknesses of global economies. In relation to the context of the decade following the financial crisis that occurred the previous year, as we have already noted, despite the variations resulting from this event, many OECD nations managed to sustain annual growth in the range of 1% to 2%. Between 2010 and 2020, there was a gradual recovery in per capita income, with some OECD countries showing annual rates of between 2% and 3%.
Salary
Wages in the OECD and North America have undergone significant changes between 1950 and 2020. During this period, real wages have increased significantly, driven by technological innovation, higher productivity and economic growth. However, wage inequality has also widened, with a greater concentration of income among highly skilled workers and executives.
Furthermore, globalization and automation have impacted wages in different ways, benefiting some regions and sectors more than others. In short, while real wages have grown, wage inequality and regional and sectoral disparities have become more pronounced. In the OECD: In 1950, the average annual income in the OECD was around $2.000. In 2020, this amount reached approximately $45.000, showing growth of around 2.200%.
In the US, the median annual income in 1950 was around $3.000. In 2020, this figure rose to around $50.000, representing an increase of approximately 1.600%. This data reflects the significant increase in real wages over these years, although wage inequality has widened over time.
Unemployment
During the 1950s and 1960s, unemployment rates were predominantly low, often below 5%. However, from the 1970s onwards, unemployment rates increased considerably, with rates peaking at around 8% in the 1980s. In the 1990s, rates began to fall again, falling to around 5% in the early 2000s. However, the 2008 financial crisis caused a temporary increase in unemployment rates, which rose again to around 8% in some countries. In recent years, rates have been relatively stable, although there are some variations by region and sector.
The issue of precariat or precarious work has become a growing concern in both the OECD and North America. In the OECD, the rise in precarious employment is attributed to the flexibilization of labor relations, globalization, and economic transformations. This includes temporary hiring, involuntary part-time work, outsourcing, and unstable incomes. The COVID-19 pandemic has further exacerbated this trend, increasing the social vulnerability of workers.
In North America, particularly in the United States and Canada, the rise in precarious work has also been significant. The sharing economy, with the presence of companies such as Uber and Airbnb, has facilitated the creation of jobs that often lack security, benefits or social protection. In addition, deregulation and flexibility in the labor market have resulted in greater instability for many workers.
These transformations represent a global challenge that has profound consequences for workers, their families and communities, demanding effective public policies to mitigate the adverse effects.
Workers and their organization
During the period 1950–2020, there has been a significant increase in workers without employment rights, most recently in the precariat, in the OECD and North America. In 1950, the share of temporary employment in the OECD was approximately 10%, while in 2020 this figure had risen to approximately 20%. In the United States, the share of self-employed workers grew from approximately 5% in 1950 to approximately 15% in 2020.
Furthermore, the informal employment rate in the OECD increased from around 15% in 1950 to around 25% in 2020. In Canada, the proportion of workers on temporary contracts rose from around 8% in 1950 to around 18% in 2020. These figures reflect the growing precariousness of work, with a significant increase in temporary, self-employed and informal employment over this period. This scenario favors the attack on labor rights and capitalism is exhausted. At the same time, other demands emerge along with new forms of action by union actors leading new strategies.
In the Organization for Economic Cooperation and Development (OECD), a process of de-unionization has been observed. During the 1970s, unions experienced significant growth, but from the 1980s onwards, a decrease in unionization rates was recorded. Scandinavian countries managed to maintain high levels of unionization, while nations such as the United States and France faced a sharp decline.
In North America, particularly in the United States and Canada, unions have also faced substantial challenges. The sharing economy and the flexibilization of labor relations have contributed to the emergence of jobs with less security and reduced benefits. In addition, labor market deregulation has resulted in greater instability for many workers. These changes reflect a global challenge that impacts workers, their families, and communities, requiring effective public policies to mitigate the adverse effects.
In Europe, movements like Los Indignados in Spain they emerged in response to high unemployment and cuts to social services, calling for reforms and greater social justice. In Greece, the economic crisis triggered large demonstrations and strikes, with workers demanding action to safeguard jobs and improve working conditions. In France, the “Yellow Vests” movement began as a response to higher fuel taxes but quickly evolved into a broader platform to demand better living and working conditions.
Between 1950 and 2020, we can observe several significant cases of social and economic progress that raise optimism in the face of the challenges posed by capitalism. The implementation of the Welfare State, notably in Western Europe after the Second World War, resulted in a substantial improvement in the quality of life of millions of individuals, providing access to health services, education and social protection.
During the 1960s and 1970s, civil rights and labor movements, such as the desegregation of the United States, made significant gains in securing fundamental rights for workers. Between 1990 and 2015, the percentage of people living in extreme poverty worldwide decreased from approximately 36 percent to less than 10 percent, as a result of collaborative efforts between governments, NGOs, and global initiatives.
The International Labour Organization (ILO) has enacted several conventions that have contributed to improving working conditions, including the prohibition of child labor and the promotion of safe and healthy working environments. In 2015, the Paris Agreement on climate change mobilized nations worldwide in a joint commitment to reduce emissions of harmful gases into the environment and promote more sustainable development. These points show that, even in the face of difficulties, collective action and social mobilization have the potential to bring about beneficial changes and advance the search for social justice and better living standards.
In the United States, in addition to the movement Occupy Wall Street, workers in the fast food and retail sectors joined the movement Fight for $15, demanding an increase in the minimum wage to fifteen dollars an hour as well as better working conditions. In Canada, unions have gained strength as workers fight against austerity policies in search of higher wages and adequate benefits. Such movements have demonstrated the resilience and determination of workers to defend their rights and seek more dignified living conditions in the face of economic and political adversity. Continuous mobilization and solidarity among workers is essential to advance social and labor gains. The human condition is the basis of any movement.
New ways of fighting
Despite the similarities that can be observed in workers' struggles over the decades, both the organization and the nature of these movements have evolved over time. In the beginning, most labor movements were led by conventional unions and focused on specific demands, such as wages, working conditions, and fundamental rights.
In the contemporary era, as evidenced by the movements Fight for $15 e Occupy Wall Street, a pattern characterized by more decentralized actions is identified, often organized through social networks and digital platforms. These movements tend to be more inclusive, encompassing a variety of social and economic causes, ranging from gender equality to racial justice and environmental sustainability, in addition to the classic demands of workers.
Today's organizations also benefit from expanded global connectivity, enabling cross-border collaborations and alliances. Movements such as Fight for $15 have received support and inspiration from similar initiatives in many nations, resulting in an international network of solidarity. Thus, although the spirit of the struggle for labor rights remains constant, the methods, tools and scope of these movements have transformed to adapt to social and technological changes, as capitalism destroys in order to accumulate.
This evolution is a testament to the resilience and adaptive capacity of workers in their ongoing quest for justice and better living conditions. Contemporary labor movements are reshaping their strategies and methods to confront ongoing technological and social transformations. Furthermore, the incorporation of emerging technologies such as Artificial Intelligence (AI), Big Data, and robotics is altering the labor market, requiring workers to develop new skills to remain competitive.
In China, India and Bangladesh, workers have mobilized to confront appalling working conditions, inadequate wages and a lack of labor rights, resorting to strikes and demonstrations as direct forms of resistance to the growing precariousness of employment. This fact, Occupy Wall Street and the Yellow Vests in France are a landmark of the emergence of the precariat. The transition towards a sustainable economy has led to a growth in demand for “green jobs” in sectors such as renewable energy and agriculture, driven by the need for sustainable practices.
Demographic changes, such as population ageing in high-income countries and the growth of the working-age population in low-income countries, are also reshaping the availability of labour. The threat to labour rights and security is further threatened.
Finally, there is a growing effort to improve access to social security and ensure safe working conditions, with the aim of mitigating inequality and promoting social justice. Such trends demonstrate the resilience and adaptive capacity of workers in their ongoing search for equity and better living conditions, as they face the challenges posed by a constantly evolving world. These new movements show that the precariat was and is a new reality in the face of the exhaustion of capitalism that impoverishes, imposes hunger and destroys in order to accumulate.
*João dos Reis Silva Junior is a full professor in the Department of Education at the Federal University of São Carlos (UFSCar). Author of, among other books, Education, Class Society and University Reforms (Associated Authors) [https://amzn.to/4fLXTKP]
the earth is round there is thanks to our readers and supporters.
Help us keep this idea going.
CONTRIBUTE