Effects Of Globalization On Employment Economics Research

Impacts of Globalization on Employment
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Impacts of Globalization on Employment
Globalization refers to the integration of economic, social, political, cultural and environmental nature across the national boundaries. Globalization has played a significant role in the generation of employment in both developed and developing countries today. Notably, various impacts on employment include the number of jobs available, the structure of employment, the composition of jobs, job earnings, employment conditions and migrations. Therefore, the paper seeks to discuss the various impacts of globalization on jobs with the aid of economic theories and empirical findings to underpin impacts of globalization on the employment sector.
First, globalization has led to the increase in the number of jobs available. An increase in the number of jobs affects various the macroeconomic variables such as the unemployment rate and the employment to population ration (Bailey & Rai, 2015). For instance, through globalization policies such as foreign direct investment, a company can be transferred or choose to open a subsidiary in a foreign country. Such a move will transfer jobs to the people in that country. As results, the population will improve regarding their disposable income, which also boosts their purchasing power that ends up uplifting their living standards (Bailey & Rai, 2015).
Second, globalization tends to affect the structure of jobs, which is the distribution of jobs within an economic activity. Jobs linked to a growing technology may create more jobs than those linked only to a particular economic activity (Bailey & Rai, 2015). This is because a growing technology is characterized by more competitive advantages and patterns of specialization than an inferior technology job.
Third, globalization affects the composition of jobs by defining the mix of skilled and unskilled jobs in an economy. In developed countries, technology is changing with time, and this negatively affects the unskilled employees by either losing their jobs or stagnant revenues due to the high competitions from the skilled employees (Keskitalo, 2012). Similarly, since more people in the developing countries are increasingly becoming better qualified, they are giving competition t...