Contrary to the high expectation that globalisation would create business opportunities in developing countries and play a big role in poverty alleviation through the creation of productive work opportunities, the latest report from the International Labour Organisation (ILO) shows that the opposite is true.

According to the ILO’s 4th edition of the Key Indicators of the Labour Market (KILM), trends in recent years show that economic growth did not translate to employment growth. Half of the workforce worldwide still does not earn enough to pull themselves and their families above the poverty line. There might be more people working, the report shows, but they are mainly in the informal economy where working conditions are poor and tolerated only because there are no other job opportunities available.

Global trends also showed that there was an increasing demand for high-skilled labour than for low-skilled occupations, thus increasing the wage inequality in the developing countries. And although more women are participating in the workforce, they are more engaged in low-wage, low-productivity, and part-time jobs. Young people, though, are seen as more prepared for the labour market, as youth illiteracy rates are lower than adults’.

Globalisation thus continues to fail in reducing poverty. It has, in fact, increased the gap between the rich and poor countries, between social classes, ethnic groups, and even genders.

The KILM gives an in-depth look at both quantity and quality of jobs worldwide, looking at 20 indicators of the labour market. The print version of the study will be available in April 2006. For additional information, visit <http://kilm.ilo.org/2205/press>.

Source:

“ILO report sees wide gaps in wages, productivity gains,” as posted 09 December 2005 at <http://www.ilo.org/public/english/bureau/inf/pr/2005/48.htm>.