Division of labor

Division of labour or specialization is the specialization of cooperative labour in specific, circumscribed tasks and roles, intended to increase the productivity of labour. Historically the growth of a more and more complex division of labour is closely associated with the growth of total output and trade, the rise of capitalism, and of the complexity of industrialization processes.

Trade and Economic Interdependence

The division of labor makes trade necessary and is the source of economic interdependence.

Global Division of Labour

There exist as yet few comprehensive studies of the global division of labour (an intellectual challenge for researchers), although the ILO and national statistical offices can provide plenty of data on request for those who wish to try.

In one study, Deon Filmer estimated that 2,474 million people participated in the global non-domestic labour force in the mid-1990s. Of these,

• around 15%, or 379 million people, worked in industry,
• a third, or 800 million worked in services, and
• over 40%, or 1,074 million, in agriculture.

The majority of workers in industry and services were wage & salary earners - 58 percent of the industrial workforce and 65 percent of the services workforce. But a big portion were self-employed or involved in family labor. Filmer suggests the total of employees worldwide in the 1990s was about 880 million, compared with around a billion working on own account on the land (mainly peasants), and some 480 million working on own account in industry and services. "ILO Global Employment Trends report" indicates that services have surpassed agriculture for the first time in human history: "In 2006 the service sector’s share of global employment overtook agriculture for the first time, increasing from 39.5 per cent to 40 per cent. Agriculture decreased from 39.7 per cent to 38.7 per cent. The industry sector accounted for 21.3 per cent of total employment."

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