International Employment Trends

Getting up early in the morning, the first thingit will not be wrong to say that the service
Scott does is to get hold of the newspaper.industry has triggered growth in developing
Squatting on a davenport, he checks out for thecountries like India.
latest job offers. He then checks his inbox for‘Shifting from the agriculture sector’ has
any interview calls he might have received. Hisbeen another trend that has come to fore in the
friend Darren just got an offer from a start-upinternational employment scene. While agriculture
financial enterprise and Scott is confident ofsector, continues to employ the highest number
receiving one. Want to know the reason forof people in the world- ILO estimates put the
Scot’s newfound confidence? Then you canfigure at 40.1% in 2005-, the number is gradually
read this article on ‘International Employmentdecreasing. In 1995, 44.4% of the workforce in
Trendsthe world was working in the agriculture sector.
Most of the countries are now witnessing aThe percentage reduced to 40.1% in 2005. The
growth in their economy. Till two years back, thelargest decline has been noticed in the South East
growth bandwagon was lead by China, India BrazilAsia and the Pacific. This region has seen a
among others. The US economy was not in awhopping 12% reduction in the number of people
robust shape and even Japan was perhapsworking in the agricultural sector. The number
witnessing what many terms as ‘the longeststood at 55.3% in 1995. In the year 2005, the
economic stagnation’. However things took atotal workforce employed in the agriculture sector
turn for the better and in the last year or so, thestands at 43.3%.
economies across the world have startedAnother international trend has been the rise in
registering a positive growth rate.the wages in sectors requiring highly skilled
Economic growth rate is a crucial factor inprofessionals. This growth has out done the rise
determining the generation of jobs. Hence it canwitnessed by those in low-skilled occupations. This
be safely assumed that the job market ishas significantly widened the wage gap between
witnessing a sort of revival. According to a reporthighly skilled professionals and those with low
published by the International Labor Organization–skills.
(ILO), the unemployment rate showed a decline inThe past few years has also witnessed Mother
the last two years. It stood at 6.3% at theNature’s fury at its worst. The Asian tsunami,
beginning of 2006. The decline has been due toHurricane Katrina, Pakistan earthquake has
new jobs created in major economies like US. Forcreated a negative impact on the job market.
e.g. a report from CNN stated that 1,28,000The Asian tsunami badly affected popular tourist
people were added to the workforce in Augustdestination like Bali and Mauritius. It snatched away
2006. The story has seen a repetition across thethe livelihood of fishermen living along sea costs of
world.India and Sri Lanka. An ILO estimates that nearly
Another significant change in the employmentone million jobs were lost in Indonesia and Sri
trend has been the rise of the service sector.Lanka due to the Asian Tsunami.
The service sector has put the economic growthThe various conflicts witnessed across the globe
rate in the driver’s seat. As per a report thathave also negatively impacted the job market.
appeared in the Associated Press, service sectorThe wars in Iraq and Afghanistan, the conflicts in
makes up for two-third of the US economy. EvenSudan and Middle East has led to thousands of
in a developing country like India, the servicejobs being lost.
sector has been the star performer. This isThe surging oil price has also affected the
perhaps also a reason as to why the number ofemployment market. The airlines industry has
employees engaged in the service sector hasborne a major brunt of this regular hike in oil
shown a steady increase in the past decade. Forprices. The upsurge in oil prices has lead to the
e.g. as per ILO, the number of people employed inbankruptcy of many airlines. This has led to many
the service sector in the world has increasedjobs being lost .The upsurge has also increased
from 34.5% in 1995 to 38.9% in 2005. This isthe operating cost of the airlines and has eaten
against the employment level in the industryinto their profits. This has led to many airlines
sector which has remained stagnant at 21%announcing major job cuts.
between the period from 1995-2005.TheWith the era of Multi Fiber Agreement coming to
interesting fact to be noted is that femalesan end, the textile industry has been a witness to
constitute 45% of the workforce in the servicemajor job reshuffle. The matter had already been
sector, which is higher than other sectors such asmade worse due to mechanization which saw the
industry and agriculture.employment level registering a steady decline
‘Outsourcing’ is the latest trend in theform 14.5 million workers in 1990 to 13 million in
employment sector. Outsourcing has created jobsthe year 2000. The end of MFA meant that fabric
in developing countries like India. Call centers andimporters in the West could now import from a
BPOs are a direct outcome of outsourcing. Thesecountry like China rather than from say,
‘shining sectors’ have created jobs forBangladesh or Vietnam. This has affected the
the educated and English speaking class of theworkers employed in these countries. Since
country. The workforce in this sector commandswomen comprise a large portion of workers in
high salaries. This has led to an increase in thetextile factories, they are the worst affected.
disposable income, which in turn has led to a riseOverall, the international employment trends have
in domestic consumption. This increasedpainted a positive picture. However continuous
consumption has led to more production of goodsconflicts and surging oil prices threaten to upset
that in turn has created more employment. Hencethe apple cart.