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-09-2018-0676 Links 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/S1474747218000288 Links 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/10.7202/1079131ar Links 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