Work and Employment in the Age of Knowledge

This article explores the evolution of the concept of work and employment from a historical and analytical perspective, using contributions from classical authors to understand the changes triggered by industrial revolutions and the subsequent impact on society and economic development. It examines the emergence of a new vision of the importance of work through mechanization and scientific management, as well as the transformations in the role of productivity and profit within capitalist processes. The knowledge age, automation, the digital economy, and digital platforms reshape labor relations, worker guarantees, and the concept of scale for profitability and economic costs. Through bibliometric techniques and computational algorithms, a literature review of influential articles is carried out to address whether the changes brought about by autonomy and automation are destructive of jobs in a definitive way or just a transitory phenomenon that may foster the creation of more jobs in a more developed economy.

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Innovation Society

Continuous innovation marks the trajectory of human development and its economic and technological transformations over time, from nomadic societies to modernity. Society has undergone significant historical transitions such as the Cognitive, Agricultural, and Scientific Revolutions, culminating in the industrial revolutions that began in the 18th century. The rise of the Industrial Age, the emergence of electricity and oil, the formation of a consumer culture, the emergence of a middle class and the demands for better working conditions, shaping the dynamics of work and production in contemporary society.

Labor and Employment

Let us address the conceptual and historical complexities between "work" and "employment," highlighting their etymological roots and sociocultural implications over time. "Employment" derives from the Latin "implicare," related to assigning roles or tasks within an organization, usually with compensation. "Work," in turn, comes from the Latin "tripalium," an instrument of torture, reflecting the ancient perception of work as something painful. This concept evolved significantly with the development of society, especially during the Industrial Revolution.

Aristotle and other thinkers of antiquity saw manual labor as inferior, reserved for slaves and artisans. This view endured until thinkers such as Locke, Smith, and Marx redefined labor as essential to the property, wealth, and expression of humanity. Locke emphasized that individual labor is the basis of personal property. Smith noted that the division of labor into factories increases productivity, exemplified by the manufacture of pins, while Marx argued that labor is the essence of the human being, criticizing its alienation in capitalism.

The contemporary perspective of work includes the recognition of labor rights and human development, in a more dignified and valued reinterpretation of the term compared to its historical origin. Transformation by automation and artificial intelligence is also discussed as an evolution of human work, continuing to change the nature of employment and working conditions in modernity.

Scientific organization of work

The transformation and uncertainties of society reflected strongly in the context of the scientific organization of work, we highlight the rapid transition from rural to industrial society and, later, to post-industrial in just 200 years. This evolution has brought about a shift in focus from the production of material goods to the production of immaterial goods such as services and information. However, this era mistakenly assumed that natural resources were infinite, which fueled the idea of unlimited economic growth. In the industrial context, Ford and Taylor played a fundamental role in the creation of the theory of scientific management of labor, the concepts of "Fordism" and "Taylorism" were born.

The scientific management of labor, although it has doubled life expectancy and well-being in industrialized countries, is also criticized by sociologists such as Domenico de Mais, for possibly suppressing creativity and pleasure (homo cogitans and homo ludens) in favor of homo faber, the being that only produces.

Platforms and Digital Taylorism

The German researcher Moritz Altenried introduces the concept of "digital Taylorism", highlighting how digital work platforms, such as Crowdwork, adopt semi-automated management and control practices that reflect Taylorism, through the measurement, standardization and disqualification of work.

Thus, the continuous relevance of this work model in the current era is questioned, which values both the creation and transformation of material goods into immaterial ones and the scale of production, instigating a reflection on the adequacy and impact of this legacy of industrialization in the future of work.

Productivity in the Knowledge Age

Let's look at the complexities of productivity in modern society, addressing how automation and technology have transformed the production and distribution of wealth. Initially, despite the abundance of agricultural and industrialized products, many workers were replaced by machines, It is totally relevant at the present time to discuss how to distribute the gains generated by automation.

In the "Knowledge Age," where the categories of time and space are altered by technology, leading to the "de-anthropomorphization" of labor, a concept where human labor is increasingly accomplished by digital and algorithmic processes. In addition, three main factors that affect the demand for labor are identified: advances in organizational management, globalization, and technological progress, which together contribute to the decrease in the need for human labor.

We have also observed the shift of innovation centers to developed countries, while production is shifted to countries with lower labor costs, will these changes result in technological unemployment or new job opportunities due to automation and technological innovation?

How these transformations affect employment and income distribution. Two hypotheses are postulated: one suggesting that automation, despite reducing jobs initially, will eventually create more jobs; and another that foresees a continued growth of goods and services produced with less human involvement, culminating in jobless growth. We need to deeply understand these changes in order to better position individuals, organizations, and governments in the face of future challenges.

Risks and Opportunities of the Digital Economy

The digital economy has brought profound transformations to the industry, reducing production, management and distribution costs thanks to Industry 4.0 innovations such as Cyber-Physical Systems, IoT, smart factories, big data, and cybersecurity. These advances have decreased costs by 10% to 30% in production and logistics, and up to 20% in quality management. The ability to compare information online has made it easier to reduce research costs, impacting industries such as banking and retail, leading to the closure of physical facilities and job losses. Sharing economy and peer-to-peer platforms have emerged, exploiting low research costs to connect supply and demand, promoting the commercialization of niche products and services. The so-called "zero marginal cost savings," exemplified in the music industry with streaming, have enabled the rapid growth of startups and the cost-effective distribution of digital products. However, this digital economy requires adequate regulations to protect content and the adaptation of professionals to new demands, raising legal and social concerns, especially related to job distribution and global economic restructuring.

Digital Platforms and the Labour Market

The rise of digital work comes in the face of rising unemployment and increased global connectivity. Initially, in the 1980s, outsourcing relocated jobs to lower-wage regions within countries, but in the 1990s, the expansion of connectivity allowed countries such as India and the Philippines to absorb large volumes of outsourced work. Currently, digital platforms make it possible to negotiate transnational work directly between workers and employers, without the mediation of formal institutions. This flexibility allows services to be delivered from anywhere in the world, increasing economic potential especially for regions where skilled jobs are scarce.

However, we identified significant concerns for platform workers, including a lack of bargaining power and the absence of labor regulation, especially when work crosses national borders. This puts digital workers in a vulnerable position as mere price takers due to competitive market dynamics.

In addition, we have the risk of economic exclusion. While digital platforms offer opportunities for individuals who are discriminated against or lack the necessary formal qualifications, there are also reports of explicit exclusion, where workers from developing countries are misunderstood and undervalued. In addition, while some professionals benefit from the platforms by gaining direct access to global clients and improving their skills, others face a greater distance from core business processes and have limited opportunities to develop their professional capabilities.

The discussion on the labour market also covers the impact of new technologies. The interactions between different job qualifications and new technologies shape the demand for labor, which is influenced by technological advancement through concepts such as biased technological change (SBTC), skills capital-complementarity (SSC), and routine bias technological change (RBTC). These dynamics affect employment trends, indicating that while automation can eliminate routine jobs, it also creates opportunities in industries that require non-routine, high-skill tasks.

Technological progress, while presenting challenges, also brings the prospect of long-term adjustments, which can lead to a realignment between jobs and tasks, as well as impact productivity and the creation of new professional opportunities. However, this suggests a continued need for adaptation and reskilling to face the new realities of the labor market influenced by technology.

Sustainability – ESG

In the face of growing sustainability challenges stemming from population growth and increased consumption, company valuation metrics, especially those listed on global stock exchanges, are evolving to include environmental, social, and governance (ESG) sustainability considerations. This new focus on sustainability has reshaped investment priorities globally, influencing market indices and the decisions of investment funds that can no longer ignore these criteria.

The concept of ESG highlights the importance of corporate approaches that balance profit with social and environmental concern, integrating the Triple Sustainable Result, which includes the dimensions of profit, planet and people. This emphasizes that economic practices must respect the human and social capital of societies, increasing the relevance of Corporate Social Responsibility.

In addition, the discussion extends to the challenges and opportunities brought about by Industry 4.0, which includes automation and cyber-physical systems integrating virtual and physical reality. While there is scepticism about the possible negative impacts on employment, such as job losses due to the automation of simple tasks, there is also a more optimistic view that suggests that Industry 4.0, although not yet fully developed, promises rapid advancement and evolution towards Industry 5.0. This next phase envisages an even greater personalization of production and broader digital inclusion, expanding human-machine interaction and enhancing the development of skills and worker satisfaction.

Social Risks and New Technologies

The emergence of Industry 4.0 has brought with it a significant paradox: while there is potential for greater efficiency and reduced production costs, there is also a profound restructuring of work and positions, impacting education and vocational training. The uncertainties generated by this transition make investments more cautious, especially since the amortization of the costs of technological innovations is uncertain, and the high initial cost for the implementation of these technologies can be prohibitive, especially for small and medium-sized companies.

In addition, the development of these technologies demands raw materials from limited reserves, intensifying the challenges related to the cost and sustainability of supply. The rapid obsolescence of technologies also requires continuous investment in training, addressing the shortage of qualified professionals in critical areas such as computer science and data security.

The automation promoted by Industry 4.0 creates risks of unemployment, especially for jobs that can be easily automated. However, there is a prospect of change with the transition to industry 5.0, which promises a more integrated collaboration between humans and machines, valuing human creativity and increasing the efficiency of processes. This could not only make up for jobs lost due to automation, but also create new job opportunities in the field of AI programming, robotics, and maintenance.

Many researchers have a particularly optimistic view of Industry 5.0, predicting that it will bring substantial economic benefits by improving human-machine collaboration, and will generate more jobs than will be replaced by automation. This new industrial revolution is expected to integrate more people into the labor market, promoting a more dynamic and interconnected global economy.

Conclusions

Due to rapid technological evolution, there is a shift in the labor market, with a growing demand for highly qualified professionals in specific fields and non-routine and social skills that are difficult to automate. The European Union, for example, has adopted strategies to expand higher education in science, engineering, and foster cooperation between academic institutions and the labor market to better meet the demands of the new digital economy.

There is a polarization of employment caused by technological advancement, where routine tasks are disappearing, while the participation of complex manual and intellectual activities grows. This shift generates "winners" and "losers" in the labor market, exacerbating the need for inclusive education policies that not only focus on promoting higher education, but also on empowering less-educated workers in low-wage jobs.

Unemployment caused by automation can be transitory, emphasizing the view that while automation may initially reduce the number of jobs, it can also create new job opportunities in the long run. Industry 5.0, described as a phase where automation harmonizes with human labor, is seen as a potential solution to these challenges by fostering a collaborative work environment between humans and machines.

The importance of effective government strategies and international cooperation to manage the impacts of the Digital Revolution is great. The appropriate response to this transformation is crucial to avoid prolonged inequalities and unemployment. Governments and organizations are encouraged to adopt policies that facilitate the transition of workers to the new economy, including reskilling and the development of new skills.

This article was based on my dissertation: THE AGE OF KNOWLEDGE – SOCIOECONOMIC CHANGES FOR WORK AND EMPLOYMENT, if you want you can access the full text (only Portuguese) at: https://ric.cps.sp.gov.br/handle/123456789/8692

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