How Functionalism, Conflict Theory, and Symbolic Interactionism Explain Unemployment

Explaining Unemployment
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Explaining Unemployment
Unemployment is a social problem describing the state of not having a job, but actively seeking employment and being available to work (Brand, 2015). Three main theories in sociology that can be used to understand unemployment as a social problem are functionalism, conflict theory, and symbolic interactionism.
According to functionalists, unemployment exists because it serves important functions for society. Unemployment may act as a safety valve, allowing people to leave jobs that are not a good fit for them and find new, more suitable employment. The idea is that when the economy is growing and there is high demand for labor, the rate of unemployment decreases, leading to increased competition for jobs and upward pressure on wages. This, in turn, can lead to inflation. However, when the economy slows down and demand for labor decreases, the rate of unemployment increases, helping to reduce wage costs and curb inflationary pressures. Thus, unemployment serves as a "release valve" that helps maintain economic stability by preventing wages and prices from spiraling out of control during times of economic growth and change. As such, unemployment regulates the economy and keeps wages from getting too high (Aruzza, 2016).
However, functionalists view unemployment as having a continuing impact on society because it represents a failure to utilize resources efficiently and can lead to several social problems. From a functionalist perspective, unemployment represents a loss of productivity, as individuals who are capable of working are unable to contribute to society and the economy. This can lead to a decline in overall prosperity and a reduction in the standard of living. Additionally, unemployment can have a negative impact on individuals and their families, leading to financial insecurity, a loss of self-esteem, and increased stress and mental health problems. This, in turn, can have broader social consequences, such as increased crime and social unrest. Functionalist theorists argue that these negative impacts of unemployment demonstrate the need for a stable and well-functioning economy that can provide employment opportunities for all members of society. They view unemployment as a challenge that needs to be addressed in order to maintain social stability and achieve long-term economic growth.
Conflict theory views the impact of unemployment on society as being shaped by power relationships and the unequal distribution of resources. Thus, unemployment exists because the capitalist system is inherently exploitative and creates a surplus of labor. Owners of capital in society have control over the means of production and exploit the working class by paying them less than the value of their labor, a process that creates unemployment (Block, 2021). From a conflict perspective, unemployment is seen as a tool used by those in power to control the labor market and maintain their dominance. For example, when unemployment is high, workers are less likely to demand higher wages or better working conditions, as they fear losing their jobs. This allows those in positions of power to keep wages low and maintain their profits.
Notably, conflict theorists argue that unemployment disproportionately affects marginalized and disadvantaged groups, such as people of color and those with low levels of education and skill. These groups are often the first to lose their jobs during an economic downturn, and have fewer resources and opportunities to find new employment. This perpetuates existing inequalities and reinforces the power imbalance between these groups and those who are more privileged. Thus, conflict theorists view the continued impact of unemployment on society as a manifestation of the ongoing struggle between different groups for control over resources and power. They argue that addressing unemployment requires challenging the existing power relationships and working to create a more equal distribution of resources and opportunities.
Symbolic interactionism holds that unemployment exists and continues to impact due to the meanings and attitudes that society attaches to it. The unemployed are often stigmatized and labeled as "failures" or "lazy" by others, which can make it difficult for them to find new employment (Ezzy, 2017). Thus, unemployment is seen as a social phenomenon that is constructed through social interactions and the interpretation of experiences. Individuals who are unemployed may experience a loss of status, identity, and self-esteem, as they are no longer able to fulfill the social roles and expectations associated with being a worker. This can have a profound impact on their sense of self-worth and their relationships with others. Additionally, symbolic interactionists argue that unemployment is a stigmatized status, and that those who are unemployed may face discrimination and prejudice in their interactions with others. This can lead to further feelings of marginalization, exclusion, and self-doubt.
Notably, symbolic interactionists argue that the impact of unemployment on society cannot be understood simply by examining economic data or structural factors. Rather, it is the meaning and interpretation of unemployment and the experiences of those who are affected by it that shape its impact on society. They argue that addressing unemployment requires understan...