global workforce


  • Over the past 5 years, the incidence of long-term unemployment (the share of unemployed persons out of work for 12 months or more) has increased 60% in the advanced and developing
    economies for which data exist.

  • [4] Global labor arbitrage, the practice of accessing the lowest-cost workers from all parts of the world, is partly a result of this enormous growth in the workforce.

  • Even considering the high savings rate of new entrants—he cites World Bank estimates that China has a savings rate of 40% of GDP—he estimates it would take 30 or so years
    for the world to re-attain the capital-labor ratio among the countries that had previously made up the global economy.

  • Labor supply[edit] Main article: Labor force The global supply of labor almost doubled in absolute numbers between the 1980s and early 2000s, with half of that growth coming
    from Asia.

  • The global economic factors driving the rise of multinational corporations—namely, cross-border movement of goods, services, technology and capital—are changing ways of thinking
    about labor and the structure of today’s workforce.

  • While most of the absolute increase in this global labor supply consisted of less-educated workers (those without higher education), the relative supply of workers with higher
    education increased by about 50 percent during the same period.

  • [6] The number of people employed in precarious work (also called “vulnerable employment”)— employment that is poorly paid, insecure, unprotected, and cannot support a household—has
    increased dramatically in recent decades.

  • The benefits of global labor arbitrage may disappear, particularly in basic manufacturing and especially in China, where wages have been rising the fastest.

  • Freeman (2010) holds that the new entrants to the global workforce since the 1980s brought little capital with them, either because they were poor or because the capital they
    had was of little economic value.

  • An increasing number of individuals move to less developed countries [13] to provide new expertise [14] or return their expertise to their country of origin.

  • Thus, global workforce mobility research is relevant to both host and home country policies.

  • One example of this is employer abuse of guest worker programs wherein employers act to sponsor guest workers at lower wages in order to decrease the overall domestic standard
    wage for workers in a given occupation, such as with Information technology workers in the United States.

  • [5] The Institute estimates that increased exports in developing countries contribute to one-fifth of non-farm jobs in those nations and that immigrants from developing countries
    contributed to 40 percent of the workforce in advanced ones.

  • [3] He estimates that the entry of China, India and the Eastern Bloc into the global economy cut the global capital-labor ratio to around 55–60% of what it otherwise would
    have been.

  • Another potential outcome is an undermining of the protections that are already in place in some countries; that is, a pressure to lower domestic and, ultimately, international
    labor standards.

  • A high dependency ratio can cause serious problems for a country if a large proportion of a government’s expenditure is on health, social security & education, which are most
    used by the youngest and the oldest in a population.

  • [3] At the same time, the rate at which new workers entered the workforce in the Western world began to decline.

  • Some observe that a growing number of multinationals, especially from wealthier areas, are starting to see the benefits of keeping more of their operations close to home.

  • In terms of global labor arbitrage, the lowest-cost labor is often found in countries that have the fewest protections for workers.

  • In addition to the economic and social factors described above, a large part of this restructuring is also due to demographic factors, changes in the structure of the world’s

  • [18] Implications Social vulnerability[edit] One issue related to the shift of employment to countries with an overall younger population has to do with the dependency ratio
    in differing countries.

  • Global workforce refers to the international labor pool of workers, including those employed by multinational companies and connected through a global system of networking
    and production, foreign workers, transient migrant workers, remote workers, those in export-oriented employment, contingent workforce or other precarious work.

  • Downward pressure on wages[edit] Another issue can arise in regard to the capital-labor ratio in the global population.


Works Cited

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