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The Global Labour Force

An academic exploration of the human capital that drives economies worldwide, detailing the definitions, structures, and global trends of the workforce.

Key Definitions ๐Ÿ‘‡ Global Trends ๐ŸŒ

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Defining the Labour Force

Core Definition

In macroeconomic analysis, the workforce, often referred to as the labour force, encompasses all individuals who are either currently employed or actively seeking employment (the unemployed).[1]

Mathematically:

Labour force = Employed + Unemployed

Outside the Labour Force

Individuals who are neither engaged in paid employment nor actively seeking work are classified as being out of the labour force. This category includes children, retirees, students not seeking work, and those unable to work.[1]

The sum of the labour force and those out of the labour force constitutes the noninstitutional civilian population, representing the total population available for civilian employment.

Participation Rate

The labour force participation rate (LFPR) is a critical indicator that quantifies the proportion of the noninstitutional civilian population that is part of the labour force. It is calculated as the ratio of the labour force to the noninstitutional civilian population.

LFPR = Labour force / Noninstitutional civilian population

Formal Employment

Structured and Paid

Formal labour refers to any employment that is formally structured and compensated through official channels, such as payroll systems, electronic transfers, or formal contracts. This type of employment is legally recognized and regulated within a country's economic framework.

Economic Contribution

Unlike employment in the informal sector, formal labour directly contributes to a nation's gross national product (GNP). It is generally characterized by greater reliability, higher income levels, and more comprehensive benefits and securities for both male and female workers.

The Informal Sector

Defining Informal Labour

Informal labour encompasses work arrangements that fall short of formal legal or practical standards. It is typically unstructured, unregulated, and may be paid or unpaid. This sector is expanding globally, particularly in developing economies.

Global Prevalence

Studies indicate that informal labour constitutes a significant portion of non-agricultural employment worldwide. For instance, in the year 2000, it represented approximately 57% of non-agricultural employment globally, and a substantial percentage of new jobs created in Africa (93%) and Latin America (83%). Economic crises often lead to a shift of workers from the formal to the informal sector.

Gender Dynamics in Labour

Women in Informal Employment

Gender is strongly associated with informal labour. Women are disproportionately employed in the informal sector compared to men, and it represents a larger source of employment for females globally. In developing nations, women often engage in occupations such as home-based work and street vending.

Regional Statistics

Across various regions, women's participation in informal employment is notably high. For example, in Sub-Saharan Africa, approximately 84% of women workers are in informal employment, compared to 63% of men. In Asia, the rates are similar for both genders at around 65%.

Unpaid Household Labour

Women and girls globally bear a significant responsibility for unpaid household work, including childcare and domestic chores. This often results in fewer hours spent in income-generating jobs compared to men. For instance, in Madagascar, women dedicate approximately 20 hours per week to housework, while men spend only two.

Sick Leave Disparities

In the United Kingdom, data from 2014 indicated that women constituted two-thirds of workers on long-term sick leave, despite making up only half of the workforce (excluding maternity leave). This highlights potential gendered differences in health-related work absences.

Agricultural Work

Definition and Context

A farmworker, farmhand, or agricultural labourer is an individual employed in agriculture. This role can range from direct production tasks like harvesting to other on-farm jobs. In many developed nations, labour-intensive crops often rely on temporary or itinerant skilled labour, frequently recruited internationally.

Environmental and Social Concerns

Agricultural labour is often at the forefront of experiencing the human health impacts of environmental issues related to farming, such as pesticide exposure or conditions like valley fever. Consequently, numerous labour rights, economic justice, and environmental justice movements have been organized or supported by farmworkers to address these challenges, alongside immigration issues and marginal working conditions.

Globalisation of the Labour Market

Expanding Labour Supply

Between the 1980s and early 2000s, the global labour supply nearly doubled, with Asia contributing significantly to this growth. Concurrently, the rate of new worker entry in Western economies began to decline. This expansion is accessed by employers in developed economies through imports, offshoring, and immigration.

Labour Arbitrage and Shifts

Global labour arbitrage, the practice of sourcing labour from the lowest-cost regions worldwide, is a consequence of this growth. The "farm to factory" transition in developing nations, driven by industrialization, has lifted millions out of poverty and significantly contributed to economic development in countries like China and India.

Offshoring Services

The rise of offshore outsourcing for IT-enabled services, such as custom software development and business process outsourcing (BPO), is closely linked to the expansion of reliable and affordable communication infrastructure. This trend allows companies to leverage global talent pools for service delivery.

Industrial Shift

The "new international division of labour" describes the relocation of production processes from developed countries to developing nations. This global industrial shift involves manufacturing and assembly components being moved to regions with substantially lower labour costs, fundamentally altering global production networks.

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References

References

  1.  Larsson, Allan. "Empowerment of the Poor in Informal Employment." Commission on Legal Empowerment of the Poor (Jan. 2006): 1รขย€ย“10. Print
  2.  Chen, Martha, Joann Vanek, Francie Lund, James Heintz with Renana Jhabvala, and Christine Bonner. 2005. "Employment, Gender, and Poverty," in Progress of the World's Women, pp. 36รขย€ย“57. New York: United Nations Development Fund for Women
A full list of references for this article are available at the Workforce Wikipedia page

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