Михаил Попов - Working Day Reduction as the Ground of Modern Economic Development

Table 21

The Dynamics of Average Annual Duration of Working Time per One Industrial Worker in the Present Conditions

At the same time, in these countries, except for the USA, tempos of working time decreasing were significantly lower than tempos of general labour expenditures decreasing in the production sphere. It was explained with decreasing in employment in it typical for all the countries, except for Canada and the USA.

Owing to increasing in the number of industrial employees, in the USA tempos of decreasing in working time per one employee turned to be higher than tempos of reduction of the general working time fund. As for Canada, growth of employment in the production sphere of this country practically graded increasing in the working time fund, so that growth of average duration of labour made only 1% per year.

In Sweden growth of duration of working time turned to be higher than increasing in the general working time fund what was a consequence of reduction of the number of employees in the production sphere.

In general, the given data confirm the regular for the modern economy character of increasing in duration of working time of employees in the production sphere. This tendency leads to equalization of the social economic state of able-bodied members of the society in fulfilled kinds of social activities.

Present working time duration in production and its dynamics do not fully correspond to possibilities caused by the achieved level of social labour productivity. By virtue of present social economic inequality, participation in fulfilment of labour in production is the lot of the minority of employees, and the part of such workers tends to decreasing. As a result, the general working time fund is formed by labour of a relatively small part of able-bodied people, so that duration of their labour remains higher than it is possible at universal participation in production, and it decreases slower than in conditions of social economic equality.

To confirm the stated theses let us see what labour duration in production could be and how it would change if the present working time fund in production would be formed by labour of all able-bodied people.

Let us suppose that ability to work is similar to economic activities and starts at age 20: this prerequisite is based on the fact of high average duration of education in modern countries. Let us also assume that retirement age is 60 – in other words, minimal age of retirement that was in Italy, for example, is taken as a norm. Absence of unemployment, coincidence of the number of able-bodied people and the number of population at the able to work age are also supposed.

From these prerequisites we can determine average annual working time duration per one employee at the present value of the general working time fund in social production (table 22).

Table 22

The Value and Dynamics of Average Annual Working Time Duration in Social Production per One Employee at Universal Participation in Production

It is obvious that in conditions of equal participation of members of the society in fulfilment of production labour both working time duration and its dynamics will differ from the present situation significantly. These differences can be more specifically judged by the data of table 23.

Table 23

Comparison of Working Time Duration and its Dynamics in Present Conditions with Similar Indices at Universal Participation in Production

So, if in 1993 all able-bodied people would participate in social production, then in all the examined countries at achieved labour productivity working time duration in the production sphere could many times be reduced, as compared to the existed level.

In 2007 the gap between this index reflecting actual employment in the production sphere, on one hand, and the index supposing participation of all able-bodied people in production, on the other hand, became more significant (except for Canada). It was explained by reduction of employment in production that took place in all the examined countries.

As a result, tempos of working time reduction at universal participation in production would be much higher than at the situation typical for the modern economy when employment in production is reduced relatively and absolutely. In Sweden, instead of increasing in working time duration, reduction of employment would take place because growth of the number of industrial workers would outstrip growth of the working time fund owing to increasing in population.

Thus, the objective opportunity of working time reduction, conditioned by ensuring growing social needs at decreasing in total expenditures in production, is realized in different ways depending on the rate of participation of able-bodied members of the society in fulfilment of production work.

Participation of all able-bodied people in social production determines such normal working time duration that is minimal at the achieved level of labour productivity. If participation in production is not universal, as it is in the present situation, then normal working time duration will approach to minimum possible duration in case of increasing in the number of employees in production, and it will increase at reduction of this number.

The effect from increasing in social labour productivity, leading to decreasing in the general working time fund, will be different. At universal participation of able-bodied members of the society in production achieved saving of labour will entirely be used for reduction of working time of people occupied in this sphere, while the dynamics of the number of employees will be determined by changing of population. At increasing in the latter, an additional factor of decreasing in normal working time duration of employees in the production sphere appears (taking into account that the output volume in the modern economy, and, consequently, the required working time fund, is not determined by the number of employees but by the level of social labour productivity).

If growth of social labour productivity is used not only for reduction of working time of people occupied in production but for reduction of their number, then decreasing in working time duration of employees slows down.

There is a possible situation when all saving of labour is realized in the form of reduction of employment in production. In case when remaining employees are enough to ensure required output at the same working time duration, the latter does not change. If decreasing in the number of employees outstrips growth of labour productivity, then decreasing in the general working time fund, because of a fall of employment, has to be made up by additional labour of employees remaining in production, the situation of working time extension contrary to increasing in effectiveness of production appears.

Obviously, in conditions of universal (and equal) participation of able-bodied people in social production tempos of reduction of normal working time duration will be higher than in the situation when a part of labour saving is realized in the form of removing a part of able-bodied people from the production sphere. In this respect, the higher an achieved level of economic development is, the higher potential tempos of working time reduction are.