Precariat
The term "precariat" describes a segment of the working class characterized by low-wage, part-time, or temporary jobs that provide little to no benefits. Emerging from the socio-economic theories of French sociologist Pierre Bourdieu and later popularized by British economist Guy Standing in 2011, the precariat reflects a growing class of workers facing increased financial insecurity and diminished socio-economic status. This phenomenon is thought to have intensified since the 1980s due to globalization, which introduced cheaper labor markets and shifted the dynamics of job security and wage levels.
Members of the precariat often work under precarious conditions, such as freelance or short-term contracts, and are typically paid hourly or by a flat fee without benefits. They may find themselves in "precarity traps," where their efforts to seek more work can lead to a loss of essential state benefits. As a result, many in this group carry significant debt and feel disillusioned about achieving the stability that previous generations experienced. Experts suggest that proactive measures from governments may be necessary to address and stabilize this growing class, underscoring the broader implications for the global economy.
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Precariat
The term precariat refers to a segment of the working class that works low-wage jobs that may be part time or temporary and offer few or no benefits. They experience greater financial insecurity and fewer prospects than other working-class individuals do. Experts believe the precariat is growing while also losing socioeconomic status. They suggest that governments around the world will need to take steps to address the situation and stabilize the working class.
Overview
The concepts behind the precariat originated in the 1990s in the writings of French sociologist Pierre Bourdieu. Bourdieu expanded on some Marxist theories about social and economic pressures on the working class. He stated that the working class was in an increasingly precarious position because the large number of available workers created an employer's market. At the same time, economic pressures on employers resulted in an increase in part-time or temporary positions, often with lower wages and no benefits.
In 2011, British economist Guy Standing coined the term precariat as a name for this class. The word came from combining precarious with proletariat. According to Marxism, the proletariat is part of a class structure topped by the elite and the plutocracy, or the wealthiest citizens who have both power and riches. Well below these elites is the salariat, or working-class employees who earn good wages at stable jobs that usually include benefits such as health care and paid time off.
Below the salariat is the proletariat, or the larger group of people who earn a lower wage and have fewer benefits. This group historically believed a better life was possible with harder work. According to Standing, the proletariat is shrinking and being replaced by the precariat, who work for low wages, have few or no benefits, and no job security. Beneath them is the unemployed.
Standing believes the rise of the precariat began in the 1980s, when globalization increased and the influx of workers in countries such as China, accustomed to much lower wages, were added to the worldwide work pool. The availability of cheaper labor and the ease with which companies could relocate created financial pressures on the traditional working class. The changes in the labor market meant that employers could offer lower wages, fewer hours, and few or no benefits and employees were not in a position to resist.
Economists have identified several characteristics for the precariat. They often work in part-time or temporary positions. They may also be self-employed freelancers or work under short-term contracts. They are paid hourly or by a flat fee, with no benefits and limited access to benefits from the state. When they are eligible for state benefits, such as food or health care support, they are often put in positions where working more will cost them more in benefits than they will be paid. Standing refers to these situations as precarity traps.
As a result, people in the precariat are more likely to carry high debt and have a very low net income. Their education and training often makes them overqualified for their jobs. Some economists say the precariat feel that they will never achieve what the generation before them did. Certain experts believe international governments will eventually need to take steps to stabilize the precariat and protect the world economy.
Bibliography
Choonara, Esme. "Is There a Precariat?" Socialist Review, Oct. 2011, socialistreview.org.uk/362/there-precariat. Accessed 28 Oct. 2017.
Jonna, R. Jamil, and John Bellamy Foster. "Marx's Theory of Working-Class Precariousness." Monthly Review, Apr. 2016, monthlyreview.org/2016/04/01/marxs-theory-of-working-class-precariousness/. Accessed 28 Oct. 2017.
Standing, Guy. "Defining the Precariat." Eurozine, 19 Apr. 2013, www.eurozine.com/defining-the-precariat/. Accessed 28 Oct. 2017.
Standing, Guy. "Meet the Precariat, the New Global Class Fuelling the Rise of Populism." World Economic Forum, 9 Nov. 2016, www.weforum.org/agenda/2016/11/precariat-global-class-rise-of-populism/. Accessed 28 Oct. 2017.
Standing, Guy. "A New Class: Canada Neglects the Precariat at its Peril." Globe and Mail, 13 June 2015, beta.theglobeandmail.com/report-on-business/rob-commentary/a-new-class-canada-neglects-the-precariat-at-its-peril/article24944758/?ref=https://www.theglobeandmail.com&. Accessed 28 Oct. 2017.
Standing, Guy. "The Precariat Is You and Me." Australian Broadcasting Corporation, 8 Feb. 2012, www.abc.net.au/news/2012-02-09/standing-the-precariat-is-you-and-me/3820486. Accessed 28 Oct. 2017.
Tungekar, Rehman. "Who Is 'The Precariat'? Economist Says New Class of Workers Fighting for Recognition, Stability." Wisconsin Public Radio, 2 Oct. 2015, www.wpr.org/who-precariat-economist-says-new-class-workers-fighting-recognition-stability. Accessed 28 Oct. 2017.
Wade, Lisa. "The 'Precariat,' the New Working Class." Society Pages, 5 Mar. 2011, thesocietypages.org/socimages/2011/03/05/the-precariat-the-new-working-class-2/. Accessed 28 Oct. 2017.