MAKE ONE RESPONSE OF AT LEAST 250 WORDS TO EACH OF THE ATTACHED POSTS.
Each reply must be at least 250 original words that respond to the initial threads. Each reply must incorporate citations in current APA format from the textbook, at least 2 scholarly sources, and 1 integrated Bible verse. Any sources cited must be peer-reviewed and have been published within the last five years.
Manufacturing jobs have declined for years because technology has improved productivity in manufacturing organizations, saturated global competition, and increased job demand in the service sector. The decline in manufacturing jobs and the increase in service sector jobs have impacted wages, employment, and unemployment. These changes are expected to continue at an accelerated rate through the next decade. Manufacturing workers are finding themselves in uncharted waters, at risk of losing their job, and those that have lost their job may be job hopping or unemployed.
Technology has enhanced improvements, creating efficiencies and higher production with less labor needed or used. The increase in automation and robotic technology has taken over many jobs and left a few jobs for a few workers, and because of the pandemic, manufacturers are trying to double – quadruple the technology used in the coming decade (O’Brien, Bair, &Venkatraman, 2022). Many manufacturers saw areas of concern in their processes during the pandemic relating to labor shortages and not being more reliable on the technology. They will be increasing their reliance on automation and robotics for all areas of the supply chain.
Automation and robotics are not the only reason for reduced wages and employment in manufacturing jobs; the foreign manufacturing market has increased the level of competition. U.S. manufacturing companies are having a harder time competing globally because the market is becoming saturated. Although the U.S. is still a top competitor in the trade market, they are not as ahead as it used to be, with many low-income countries entering the trade market, offering lower costs to other countries, decreasing the demand for U.S. exports and reducing the demand for manufactured items (Rose, 2021). To save on costs, manufacturers have reduced labor, wages, and hours, which also impacts the worker’s access to healthcare. Employment in manufacturing has declined from “32 to 8 percent” (Rose, 2021, p. 11), where more than 80% are working in the service sector.
The service sector consists of high-skilled, high-paid, and low-skilled, low-pay jobs and is expected to increase as the manufacturing jobs decrease, balancing each other out (Martocchio, 2019). Agriculture, manual labor, retail, non-administrative positions in offices and schools, and office work are part of the low-skilled service sector and do not require education (Rose, 2021). These positions are decreasing overall but are seeing an influx of workers that are leaving or being pushed out of manufacturing jobs. There is an overall increase in the other sector jobs coming from the manufacturing jobs that require skills and education, such as computing or IT and construction (Rose, 2021).
When the job market in the service sector is strong, which it has been and even more so than experts predicted, it has increased interest rates and played a part in the recession (Labor market clobbers expectations even as wage growth slows, while interest rate-sensitive manufacturing and housing continue to struggle, 2023). Although the service sector job market is strong, low-skilled jobs are very unstable due to economic reasons and have low wages and high turnover. These companies may save on labor or costs by turning these jobs into part-time positions and affecting the worker by reducing their hours and eliminating their benefits (Martocchio, 2019). These positions are already low-paid, and the company experiences a high turnover when they reduce hours. Workers hop from one low-paying job to another, increasing the risk of unemployment. The unemployment for these workers lasts longer than for higher-skilled workers in the service sector (Chopper, Schneider, &Harnett, 2022).
Biblical Integration
Uncertainty in jobs can create feelings of worry and confusion. Manufacturer workers that see the jobs around them being eliminated may cause worry about their future. Matthew 11:28-30 describes when Jesus tells the hardworking and burdened people to come to Him (Press, 2015). As manufacturing jobs are being eliminated and replaced with automation, 1 Corinthians 6:12 reminds us that not all things that happen are good, but we must not let them dominate us (Press, 2015). We have to lean on our faith during those times of uncertainty.
References
Chopper, J., Schneider, D., &Harnett, K. (2022). Uncertain time: Precarious schedules and job turnover in the US service sector. Industrial & Labor Relations Review, 75(5), 1099-1132. doi:10.1177/00197939211048484
Labor market clobbers expectations even as wage growth slows, while interest rate-sensitive manufacturing and housing continue to struggle. (2023, February 3). States News Service. States News Service. https://go.gale.com/ps/i.do?p=BIC&u=vic_liberty&id=GALE%7CA735724387&v=2.1&it=r&sid=summon&aty=sso%3A+shibboleth
Martocchio, J. J. (2019). Strategic Compensation. Pearson Education. https://mbsdirect.vitalsource.com/books/9780135175910
O’Brien, R., Bair, E., &Venkatraman, A. (2022). Death by robots? Automation and working-age mortality in the United States. Demography, 59(2), 607-628. https://www.jstor.org/stable/48687271
Press, I. (2015). The Didache Bible. Rev. James Socials.
Rose, S. (2021). Do not blame trade for the decline in manufacturing jobs. Washington, D.C.: Center for Strategic and International Studies. https://csis-website-prod.s3.amazonaws.com/s3fs-public/publication/211004_Rose_Trade_MfgJobs_0.pdf?KihPyM6zLZHhjNBTbi_tpGLvOe7x2V8E
Shifting Economic Foundations
Service sector classified jobs describe six major industry groups: government, wholesale commerce, retail trade, finance, insurance, real estate, logistics, communication, and public utilities. The employment of manufacturing firms has significantly decreased over the previous several years, and according to economic projections, this trend will continue through 2026 (Martocchio, 2020). A consistent decline in employment in the manufacturing sector is anticipated to be countered by a significant increase in jobs in the construction sector and service industries like professional and business services, health care, and social assistance (Niu et al., 2022). Employers still maintain a responsibility to their committed workforce as the industry shifts.
Manufacturing Industry Changes
By 2026, the economy projects adding 10.5 million jobs in the service sector. Furthermore, contingent employees frequently find jobs in service industries that require more labor than capital (Martocchio, 2020). Canada had a decrease in employment in the manufacturing sector. This transformation inevitably had significant ramifications for London, a medium-sized industrial city in Southwest Ontario, a situation it shared with numerous other communities in the southwest. London’s employment losses because of outsourcing and other technical and global pressures were undoubtedly not exceptional, despite the city’s tight integration with the larger North American economy. The employment market in London, however, has done notably badly since 2001 compared with all other census areas in Canada, as this research demonstrates. This is true for both the general rate of job creation and the expansion of the professions that are typically seen as desirable in the twenty-first century (Kerr &Qiyomiddin, 2021).
Industry Changes Determine Wage Points
Every market exists through supply and demand, and compensation managers must follow market trends when defining compensation (Gale et al., 2020). Wages are determined based on the type of employment a person works in. Manufacturing work is becoming more closely aligned with the contingent workforce, and employers see more substantial results through innovation and time-bound contracts rather than long-term, salary-based employees (Chen et al., 2019; Martocchio, 2020). Traditional manufacturing workers will continue to witness declines in wages and opportunities as employers seek to hire through contingent labor and outsourcing. Therefore, as these outdated employment options decrease wages, positions will also decline. Employers maintain many existing employees faithful to the manufacturing organizations for decades. There are Biblical (ethical) arguments for demanding the support and protection of these members suffering to remain employed as the manufacturing sector continues to transform and shift to other locations.
Biblical Integration & Conclusion
Executives and compensation managers must always maintain the humble reality that we are all equal in God’s eyes (Gen, 1:26-27, NIV, 2022). Executives hold a special responsibility as leaders and must be accountable for those employed under their organization. God informs His people that they must always do the right thing and treat each other with dignity and respect. Oppression and violence exist in this world, and those able to defend against these sins are committed to Godly values (Jer, 22:3, NIV, 2022). God tasks all Christians with protecting the less fortunate as God defends us from our sins (2 Sam, 22:3-4, NIV, 2022). Countering sin and advocating for the less fortunate is challenging, but suffering for Christ is the purpose of this life (Rom, 12:2, NIV, 2022).
References
Chen, C. V., Yeh, P., & Madsen, J. (2019). Contingent worker and innovation performance in electronics manufacturing service industry. Chinese Management Studies, 13(4), 1003-1018. https://doi.org/10.1108/CMS-09-2018-0676Links to an external site..
Gale, W. G., Holmes, S. E., & John, D. C. (2020). Retirement plans for contingent workers: Issues and options. Journal of Pension Economics & Finance, 19(2), 185-197. https://doi.org/10.1017/S1474747218000288Links to an external site..
Kerr, D., &Qiyomiddin, K. (2021). Employment in Ontario’s industrial heartland: Evidence of economic decline in a mid-sized industrial city. The Canadian Journal of Regional Science, 44(1), 5-10. https://doi.org/10.7202/1079131arLinks to an external site..
Martocchio, J. J. (2020). Strategic compensation: A human resource management approach (10th ed.). Upper Saddle River, NJ: Pearson ISBN: 9780135175910.
New International Version (NIV) Bible. (2022). BibleGateway.com. http://www.biblegateway.com/Links to an external site..
Niu, M., Wang, Z., & Zhang, Y. (2022). How information and communication technology drives (routine and non-routine) jobs: Structural path and decomposition analysis for china. Telecommunications Policy, 46(1), 102242. https://doi.org/10.1016/j.telpol.2021.102242
