Getting up early in the morning, the first thing Scott does is to get hold of the newspaper. Squatting on a davenport, he checks out for the latest job offers. He then checks his inbox for any interview calls he might have received. His friend Darren just got an offer from a start-up financial enterprise and Scott is confident of receiving one. Want to know the reason for Scot’s newfound confidence? Then you can read this article on ‘International Employment Trends
Most of the countries are now witnessing a growth in their economy. Till two years back, the growth bandwagon was lead by China, India Brazil among others. The US economy was not in a robust shape and even Japan was perhaps witnessing what many terms as ‘the longest economic stagnation’. However things took a turn for the better and in the last year or so, the economies across the world have started registering a positive growth rate.
Economic growth rate is a crucial factor in determining the generation of jobs. Hence it can be safely assumed that the job market is witnessing a sort of revival. According to a report published by the International Labor Organization (ILO), the unemployment rate showed a decline in the last two years. It stood at 6.3% at the beginning of 2006. The decline has been due to new jobs created in major economies like US. For e.g. a report from CNN stated that 1,28,000 people were added to the workforce in August 2006. The story has seen a repetition across the world.
Another significant change in the employment trend has been the rise of the service sector. The service sector has put the economic growth rate in the driver’s seat. As per a report that appeared in the Associated Press, service sector makes up for two-third of the US economy. Even in a developing country like India, the service sector has been the star performer. This is perhaps also a reason as to why the number of employees engaged in the service sector has shown a steady increase in the past decade. For e.g. as per ILO, the number of people employed in the service sector in the world has increased from 34.5% in 1995 to 38.9% in 2005. This is against the employment level in the industry sector which has remained stagnant at 21% between the period from 1995-2005.The interesting fact to be noted is that females constitute 45% of the workforce in the service sector, which is higher than other sectors such as industry and agriculture.
‘Outsourcing’ is the latest trend in the employment sector. Outsourcing has created jobs in developing countries like India. Call centers and BPOs are a direct outcome of outsourcing. These ‘shining sectors’ have created jobs for the educated and English speaking class of the country. The workforce in this sector commands high salaries. This has led to an increase in the disposable income, which in turn has led to a rise in domestic consumption. This increased consumption has led to more production of goods that in turn has created more employment. Hence it will not be wrong to say that the service industry has triggered growth in developing countries like India.
‘Shifting from the agriculture sector’ has been another trend that has come to fore in the international employment scene. While agriculture sector, continues to employ the highest number of people in the world- ILO estimates put the figure at 40.1% in 2005-, the number is gradually decreasing. In 1995, 44.4% of the workforce in the world was working in the agriculture sector. The percentage reduced to 40.1% in 2005. The largest decline has been noticed in the South East Asia and the Pacific. This region has seen a whopping 12% reduction in the number of people working in the agricultural sector. The number stood at 55.3% in 1995. In the year 2005, the total workforce employed in the agriculture sector stands at 43.3%.
Another international trend has been the rise in the wages in sectors requiring highly skilled professionals. This growth has out done the rise witnessed by those in low-skilled occupations. This has significantly widened the wage gap between highly skilled professionals and those with low –skills.
The past few years has also witnessed Mother Nature’s fury at its worst. The Asian tsunami, Hurricane Katrina, Pakistan earthquake has created a negative impact on the job market. The Asian tsunami badly affected popular tourist destination like Bali and Mauritius. It snatched away the livelihood of fishermen living along sea costs of India and Sri Lanka. An ILO estimates that nearly one million jobs were lost in Indonesia and Sri Lanka due to the Asian Tsunami.
The various conflicts witnessed across the globe have also negatively impacted the job market. The wars in Iraq and Afghanistan, the conflicts in Sudan and Middle East has led to thousands of jobs being lost.
The surging oil price has also affected the employment market. The airlines industry has borne a major brunt of this regular hike in oil prices. The upsurge in oil prices has lead to the bankruptcy of many airlines. This has led to many jobs being lost .The upsurge has also increased the operating cost of the airlines and has eaten into their profits. This has led to many airlines announcing major job cuts.
With the era of Multi Fiber Agreement coming to an end, the textile industry has been a witness to major job reshuffle. The matter had already been made worse due to mechanization which saw the employment level registering a steady decline form 14.5 million workers in 1990 to 13 million in the year 2000. The end of MFA meant that fabric importers in the West could now import from a country like China rather than from say, Bangladesh or Vietnam. This has affected the workers employed in these countries. Since women comprise a large portion of workers in textile factories, they are the worst affected.
Overall, the international employment trends have painted a positive picture. However continuous conflicts and surging oil prices threaten to upset the apple cart.
About the author:
Dakotta J.K. Alex, social networking director and author of “Damn, I Need a Job. Again!” and “The Recruiters Guide Book,” is a Global HR Solutions Consultant specializing in human capital recruitment, process management and career analysis in the US, Europe and China. With over 9 years of consultancy experience he has found his niche in the social networking arena and now runs the 3rd largest recruiting network forum http://www.RecruiterGroups.com in addition to a candidate / recruiter forum known ashttp://www.AskTheRecruiter.com. Information regarding Dakotta’s other ventures, books, and articles can be found at http://www.dakotta.com.
About the author: Dakotta J.K. Alex, social networking director and author of “Damn, I Need a Job. Again!” and “The Recruiters Guide Book,” is a Global HR Solutions Consultant specializing in human capital recruitment, process management and career analysis in the US, Europe and China. With over 9 years of consultancy experience he has found his niche in the social networking arena and now runs the 3rd largest recruiting network forum http://www.RecruiterGroups.com in addition to a candidate / recruiter forum known as http://www.AskTheRecruiter.com. Information regarding Dakotta’s other ventures, books, and articles can be found at http://www.dakotta.com. Article Source:http://www.articlesbase.com/human-resources-articles/international-employment-trends-1090766.html
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