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Session 11: Relationships between employees and globalisation. - Coggle…
Session 11: Relationships between employees and globalisation.
"Does Globalisation Promote Employment"
(Huwart and Loic, 2013)
Overall
Globalisation destroys jobs but creates many more.
Globalisation is often blamed for job loss in OECD countries.
Job loss in OECD countries often reappear in developing and emerging countries.
Job Loss
Job losses due to competing goods from emerging countries.
International competitions effects employment and its hard to measure.
OCED countries switched from industrial employment to high value-added activities (design, tech etc...)
Low-cost imports of industrial products came then from emerging countries, like China and textiles.
Job losses affected low value-added goods from developing countries.
Trend - decline of industrial employment and business in OECD countries moved to emerging countries proving low value-added goods.
Imports from emerging countries have caused job losses in OECD countries.
Job loss from offshoring
Significant impact on jobs in OECD countries.
Large share of major firms have outsourced or plan to do so.
Effects industrial and service-sector jobs.
But job loss is still mainly low-skill, labour-intensive positions.
Offshoring accelerated by globalisation and reduced trade barriers.
Cost savings from offshoring can boost productivity and competitiveness in the economy.
Increased competition can lead to new investments and job creation.
Advances in communication and global supply chains made relocation easier.
Job losses not from globalisation
In developed countries globalisation is not the main course of job loss.
Mostly from internal restructuring and technology improvements.
Most US job losses are from productivity gains and corporate restructuring.
Globalisation indirectly contributes by improving efficiency and technology.
Productivity kills and creates jobs.
Job creation
High-tech industries and services
Economic crisis increased unemployment (not down to globalisation).
Before economic crisis, total employment in OECD countries increased.
New jobs came in high-tech and service industries (business service, healthcare, hospitality)
New service jobs generate higher value added than industrial jobs.
Productivity gains support higher-value job creation.
Governments must support workers negatively affected by globalisation.
Was an increase in available jobs but job quality was still down.
Wages
Lower wages in low-value added sectors
Globalisation put downward pressure on wages.
Offshoring or threat of has led workers to accept wage cuts.
Wage cuts used to prevent firms from relocating production.
Productivity rose whilst wages fell.
Labour share of national income has declined, whilst company's profits are a growing share of GDP.
Different across sectors.
Low-skill, standardised jobs face greater pressure.
High-skill sectors face less pressure.
Globalisation created many high-quality, well-paid jobs.
Demand for skilled and specialised work has increased.
Job Insecurity
Globalisation has increased job insecurity in OECD countries.
Ability to offshore weakens unions' bargaining power.
Firms rely more on part-time and fixed-term contracts.
Young workers are effected more than older.
Mainly affects low-skilled and unskilled workers.
Increased competition from low-wage countries contributes to lower employment quality.
Job Quality in Emerging Countries
Globalisation can create poor working conditions in developing countries.
Weak legal and admin systems in some countries can exacerbate exploitation.
MNE's can improved employment conditions by importing higher standards.
Local firms partnering with MNE's often see higher productivity and better wages.
Benefits mostly go to skilled workers rather than low-skill or unskilled.
Positive effects are supported by unions and civil-society pressures.
MNEs have CSR programs.