11-1

Global work force

diversity-1
-1 uses more recent data and -2 uses less recent data
(Labour Forces )
11-2
Learning Objectives
Identify forces beyond management
control that affect the quantity and quality
of labor
Explain the reasons that cause people to
leave their home countries to work abroad
Discuss why some countries have guest
workers
11-3
Labor Quality and Quantity
Quality, quantity, and composition of labor force are of
great importance to an employer
Labor Quality
The skills, education, and attitudes of available
employees
Labor Quantity
The number of available employees with the skills
required to meet an employers business needs

LO1
11-4
Worldwide Labor
Conditions and Trends
Overall size and sector of the work force
International labor trends
Aging of populations
Rural to urban shift
Unemployment
Immigrant labor
Child labor
Forced labor
Brain drain
Guest workers
LO1
11-5
Primary Occupation of National Labor Force
LO1
11-6
Percentage of the Population
aged 65 or More
LO1
11-7
Unemployment
3.1 billion workers in 2008 (per UN, ILO)
200 million overall are unemployed
Middle East and North Africa (13.2%)
Sub-Saharan Africa (9.7%)
Central and Eastern Europe (9.7)
Latin America and Caribbean (7.7)
Developed economies (6.7%)
Southeast Asia and the Pacific (6.1%)
South Asia (4.7%)
East Asia (3.8%)
45% of unemployed are between age 15 and 24

LO1
11-8
Labor Mobility
Labor Mobility refers to the movement of people from
country to country or area to area to get jobs
Immigration refers to the process of leaving ones home
country to reside in another country
Foreign-born
Population comprises those immigrants whose move
is permanent and may include taking citizenship
Foreign
Population who are guest workers
LO2
11-9
Standard terms
The North = Used to equate with the OECD,
wealthy, industrialized countries usually
found in the North

The South = Used to equate with the Third
World, poorer, less governable, source of
many migrants
11-10
The international migrant
For the purpose of estimating the
international migrant stock, international
migrants are equated either being foreign
born or being foreign citizens

(Trends in International Migrant Stock: The
2013 Revision)
11-11
International Migration

Globally, there were 232 million
international migrants in 2013
Between 1990 and 2013 (mainly 2000-
2010), the number of international migrants
worldwide rose by over 77 million or by 50
per cent.
The developed regions gained 53million - the
developing regions added 24million
11-12
11-13
Nations With the Highest
Number of International Migrants
LO2
11-14
International Migration
In 2013, over 51 per cent of all international
migrants in the world were living in 10 countries. The
top 6 were:
1. USA 46m 20%
2. Russia 11m
3. Germany 10m
4. Saudi 9m
5. UAE 8m
6. UK 8m


11-15
International migrants
As can be seen, at 4.2million people,
Pakistan has been the source of much
international migration.
Some migrants (from India or Iran) use
Pakistan as a transit point to move
elsewhere
Most migrants are from Afghanistan (i.e.:
Afghani Hazaras in Quetta who came 30 years ago
as refugees but havent returned)
11-16
Labor
Child labor
The labor of children below 16 years of age
who are forced to work in production and
usually receive little or no formal
education
Primarily found in developing nations
Existent in developed countries
70% are in agriculture
Forced labor (27 million today) mostly in
South and East Asia
Northern and western Africa
parts of Latin America

LO2
11-17
Brain Drain
Brain drain refers to the loss by a country of its most
intelligent and best-educated people
Record numbers of immigrants are moving to
OECD countries in search of jobs
When skilled workers migrate from developing
countries they do so for professional
opportunities and economic reasons

Reverse brain drain refers to the growth of outsourcing and
the movement of highly educated, technologically skilled
employees and research scientists to other countries
11-18
The following charts are on Ten
migration corridors with the
largest number of
international migrants per year

1990-2013 (thousands)
11-19

Migration corridors 1990-2000
(thousands)

11-20
11-21
11-22
Brain Drain
LO2
11-23
Foreign-Born Individuals in the USA
with Science or Engineering Ph.D.
LO2
11-24
Guest Workers
Guest workers are people who go to a foreign country legally
to perform certain types of jobs
Guest workers provide the labor host countries need
Guest workers are desirable as long as the
economies are growing
When economies slow, fewer workers are needed
and problems appear
11-25
Considerations in Employment Policies-1
Social Status
Important with respect to labor force, especially
in some cultures

Caste: the group to which people belong in a
system under which peoples place or level in a
multilevel society is established at birth as being
the same level as that of their parents
11-26
Considerations in Employment Policies-2
Sexism refers to the acceptability of women as full and
equal participants in the work force ranges widely

Worldwide, 59% of all businesses include
women in senior management positions

11-27
Ratio of Wages, Woman versus Men, Selected
OECD Countries
LO4
11-28
Racism
Black and White conflict
U.S., South Africa, Great Britain and elsewhere
Arab-, Indian-, or Pakistani and Black conflict
Africa
Tamils and Sinhalese Conflict
Sri Lanka
LO4
11-29
Minorities
Traditional Societies
Tribal peoples before they turn to
organized agriculture or industry;
traditional customs may linger after the
economy changes
Minorities
A relatively smaller number of people
identified by race, religion, or national
origin who live among a larger majority

LO4
11-30
Employer-Employee Relationships
The labor market refers to the pool of available potential
employees with the necessary skills within commuting
distance from an employer
A company must study the labor market when
considering whether to invest in a country
Sources include
Foreign Labor Trends
Handbook of Labor Statistics
Yearbook of Labor Statistics


LO5
11-31
Country Strike Rates Selected OECD Nations
LO5
11-32
Labor Unions

European labor
Identified with political parties and socialist
ideology
United States labor
Laborers already have many civil rights
Collective bargaining
A union represents the interests of a
bargaining unit (sometimes includes both
union members and nonmembers) in
negotiations with management
LO5
11-33
Labor Unions
Japanese unions are enterprise-based rather than industry
wide
Unions tend to identify strongly with company
interests
Research shows that of all developed country
workers, Japanese workers are the least
satisfied with their jobs
LO5
11-34
Labor Union Membership Trends
Employers have made efforts to keep their businesses
union-free
More women and teenagers have joined the work force,
low loyalty to unions
The unions have been successful in raising wages, which
leads to offshoring
In the knowledge economy, industrial jobs that have
formed the core of union membership are declining
LO5
11-35
Multinational Labor Activities
Internationalization of companies creates opportunities
for them to escape the reach of unions
In response, unions have begun to
collect and disseminate information about
companies
consult with unions in other countries
coordinate with those unions policies and
tactics
encourage international companies codes of
conduct
Multinational unionism is developing
LO5
11-36
Multinational Labor Activities
The International Labor Organization (ILO) promotes social
justice and recognizes human and labor rights worldwide
The Trade Union Advisory Committee to the OECD
consults on trade union issues in global markets


LO5
11-37
Union Membership Across Countries
LO5