Causes of unemployment

In this essay I will discuss how unemployment is an individual and a social problem and how Max Weber distinguished power, authority and coercion and how the functionalist, conflict theorist and symbolic interaction theory view the economy and by the mid century how they have evolved and the role of these theories to explain social and economic phenomenon.

How unemployment is individual and social problem

Unemployment is caused by many factors in a modern market economy. It can be caused by rapid technological change, business cycle or recessions, seasonal factors in some industries particularly such as changes in tastes and climatic conditions which affects demand for certain products and services, individual perceptions and willingness to work and search for jobs, their values and attitudes towards some jobs and about employers, accessibility for retraining and acquisition of work skills, willingness and perception of unemployed of the benefits of training and the possibility for them to get a job after the training even though they have a chance to get a job, discrimination in the workplace based on race, color. religion, ethnicity, age and class.
It can be seen from the above causes unemployment in a particular period can be a combination of caused by social factors and how the economy as a whole works and also due to the subjective individual factors. In a sociological point of view according to functionalist and conflict theorists the unemployment is caused primarily by the social factors than by the individual factors. However according to Max Weber and symbolic interaction theories individuals construct their own social constructs and perception and they can be subjective in their behavior and there fore can become unemployed even though the actual condition they can get a job in the job market.
In summary applying the sociological and the primary causes of unemployment unemployment is individual as well as a social problem in a market economy. As discussed above it is caused by the society as well as by individuals. Even the economy or societal factors are not present unemployment can be caused by individual perception and their own subjective behavior.

Max Weber's distinction among power, authority and coercion

Power can be defined as one person's ability to influence others does what ever they want even though they don't like to do what is demanded and they resist doing what is demanded. For example a professor can influence the students to assign work and demand them to do to satisfy some criteria. As well a dictator like Hitler can control all aspects of life because of this ability to impose his will on majority of people. In other words a person or group on other person or other groups can use power legitimately or illegitimately. That is power need not come from proper authority or legitimate authority. That is power and authority can be different in this respect.
According to Max Weber authority can arise from tradition, charisma of certain powerful people or from legal-rational. That is authority need not come from any logical reason but likely to come from respect for the past. For example a monarchy in Western Europe can get authority because they ruled the populace over a long period of time. Even the traditional authority can exist in modern democracies because the people respect the monarchy or authority of monarchy at least in a limited symbolic head of states in Western Europe.
Authority also can arise from charisma of some powerful people. They have authority because of their charisma. This arises because they have the ability to lead a vast number of people for a particular cause using their powerful charm and influence over ordinary people. For example Martin Luther King, Gandhi. Nelson Mandela is the modern examples of charismatic authority they had because of their ability to charm and influence a vast majority of people for a particular cause.
Authority also can arise from legal-rational. That is in society authority is given to individuals and organization based on rationally enacted laws and regulations. This authority is impersonal and differs from charismatic authority because the legal-rational authority is impersonal and the charismatic authority is personal and admired by the people who accept that authority. In modern societies the authority is derived from the legal-rational compared to charismatic and traditional in varying degrees in industrialized societies in particular.
Coercion is the extreme manifestation of power in a way threatens the person to complete obedience because it threatens the person coerced physically, financially and socially. This results in persons following the authority of another because of fear rather than will. Coercion is mostly linked with abuse and conflict. Coercion exists in many dictatorships in the past as well as in the present world in many parts of the world where citizens are forced to follow the regime of dictatorship.
The view of the economy in the perspectives of functionalist, conflict theorists and symbolic interaction theory

Functionalist perspective of the economy

In the perspective of functionalist sociological theorist social systems including economy works like a biological organism where every part of the system work in a united manner so that smooth functioning is maintained and so that society builds consensus between different parts of the system.. In this change is evolutionary and the changes take place to minimize dysfunction and to enhance the stability and its survival in the future. In this respect Capitalism will not collapse and will endure in the future as the functions of the system will adjust and evolve so that it maintains the social order and stability without any radical overhaul of the economic system. In addition the social, legal, political, religious systems will not be in conflict with the economic system and work in unison with the economic system so the whole social organism survive and social order is maintained and their functions and their purpose even though different work as a unified system. As discussed above this is the functionalist view of the economy.

Conflict theorist view of the economy

In contrast conflict theorist believe society do not work as a unified system. Conflict and struggle take place as different groups work to maximize their benefit in the same time other groups loose. Functionalist view conflict in a negative manner. However the conflict theorist see the conflict to some extent is beneficial as it forces the parties to come to a common ground and make the economic system or the social system to change for the better and minimize the losers and maximizing the benefits for a greater number of groups as well make the power system in check so that abuse of power is minimized.
In this context the economic system and social order changes continually and changes take place and shaped by different interest groups in varying degrees in a market economy. However Marxism as a conflict theory predicts radical change to the economic system to move towards a socialist system it has not eventuated. However Max Weber as a conflict theory predicts the viability of the market economy with some reform to minimize the negative aspects of capitalism like alienation and the negative impact of bureaucracy in capitalist economies and more democracy in society and continuous reform of the economic system to make it work efficiently but also effectively by legal, social and political reform appropriate to a countries historical, cultural, political and social context.

Symbolic interaction theory perspective of economy

Symbolic interaction theory is a micro-sociological theory as opposed to the functionalist and conflict theory. That is symbolic interaction theory analyze how individuals and groups interact with each other and how they adept to change and shape change and build economic and social relations and political structures and institutions rather than viewing the economic system as whole. In their perspective communication and negotiation between individuals and groups and build symbolic meaning imposing this meaning in society and economic system and its parts work on these symbolic meaning of the societies relationship with the economic affairs of society and its priorities and what changes are beneficial to society in economic terms in these symbolic meanings determine how the economic system work and all the issues involved in the economy and how it must be resolved and the process of reform and changes to the economic system.

End of mid-century and the evolution of new sociological theories

In the present global economic environment and deregulation of the market economy and also after the fall of Berlin Wall and the collapse of Soviet Union the power of Marxism has dramatically reduced. This created new sociological theories such as post-modernism, relativism and neo-liberal theories of economics and society in general. However the functionalist and conflict theories have some resonance to some groups in society particularly to trade union movement in some parts of the world. This may be due to the negative consequences at least perceived by some groups in society and particularly in the developing world.
In era of rapid technological changes, social changes as well as political instability in some parts of the world and unpredictability of economic and social outcomes may revive some of the earlier theories particularly the conflict theories may become credible at least in some parts of the world. The social stability and order is not a phenomenon in this century in some parts of the world and there are rapid changes in countries and some countries face severe instability even after reform particularly in some parts of Asia and Africa as well as in Middle East.
In addition after the mid century the environmental issue became prominent. Some economist and sociologists view this as a market failure. As suggested by functionalist and symbolic interaction theories the environmental issue must not arise. However it is a reality and most political scientists, economists now agree environmental problem is a serious issue for the whole world. This may be due to the negative consequence of the market economic system and the externalities it produces. However as economic systems become more dynamic and adaptable to change there is hope the present system will survive with evolving reforms within the system rather than radical over hall of the present economic and social system. However the political instability and economic instability in some parts of the developing world and the crucial environmental issues must be adequately addressed. The way the present economic system address successfully these complex issues will determine the survival of the present economic and social order and the relevance of functionalist, conflict theory of Max Weber or the symbolic interaction theory or post modernism than the radical conflict theory of Karl Marx.

Conclusion

As discussed above unemployment can be an individual issue as well as a social problem. This is an individual issue because the individual can perceive subjectively and behave in a subjective manner. However the social or economy as whole also can affect his employment prospects particularly if the economy goes through boom and bust cycles. I addition it may be also due to technological innovation and rational economic decision Contribute to structural unemployment. There fore unemployment can be an individual issue as well as a social problem.
In the perspective of Max Weber power, authority and coercion are distinguishable because power can be exercised by any strong personality without legitimate authority or even if a person has legitimate authority that person can abuse the power given by that legitimate authority. In addition authority can come from tradition, charisma or from legal-rational authority given to a person or group by rational and logical reason. As well according to Max Weber coercion is the abuse of power in extreme as a threat. It can be a physical, financial or social threat. The person who abuses power to compel the other person or group for complete obedience can use coercion. In this sense according to Max Weber power, authority and coercion are distinct and distinguishable.
In summary the functionalist's view of economy is that the economy works as a unified system like a biological organism. The functions of the separate parts can be different but the functions are defined so that the economy works to maintain order particularly social order and changes only happens to reduce dysfunctions. Consensus is the norm and conflict is an exception and it is temporary as all participants in the economic system voluntarily make consensus so that the system works to maintain order.
However the conflict theory is opposite of functionalist theory and suggests in an economic system conflict and struggle is norm because the participants maximize their benefit in the expense of others because conflicting interests. For them conflict is necessary for change and to refine the economic system where the economic participants come to common grounds so that the economic system evolves and adepts dynamically. for conflict theorist the economy changes all the time and social order is disturbs and it evolves in to a new economic relationship and new economic system. However according to Max Weber the Capitalist system will adept and change and evolve but not radically change by revolution in to a socialist economic system as predicted by Karl Marx.
The symbolic interaction theory is a micro sociological theory which emphasizes the importance of symbolic meaning which arises from interaction of different groups and individuals in society and which is imposed on society which determines how the economic participants behave and what changes are necessary within the symbolic meaning and what institutions are necessary to meet the outcomes which is symbolically important at a particular time. In this perspectives the changes are made by groups and individuals interacting and communicating and create meaning or constructing meaning is the driving force for change and adapt for changes in the external environment.
By the mid century many new sociological theories have risen. However the old theories are not disbanded by at least some groups in society and in different parts of the world. In the current global environment and deregulation of economies neo-liberal theories are dominating at least in the economic field. As well post-modernism have risen after the collapse of the Soviet Union and the collapse of Communism in the Eastern European countries. However the functionalist and conflict theories play a part in some western countries in different degrees and in some developing world. As discussed above even though interaction theory and other new theories become prominent due to negative consequences of global economy and liberalization process some groups and in some parts of the world conflict theory is used in practice in explaining how the economic system works and the positive and negative consequences due to the externalities of the capitalist economic system. The relevance of theories to explain economic system depends in the future how environmental issues; social and political instability in some parts of the world is resolved by the current economic and social order.