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.
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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
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.
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.
Paid vs. Unpaid Labour
Interplay with Formal/Informal
The distinction between paid and unpaid work is closely intertwined with the formal and informal labour sectors. Some informal work may be compensated "under the table" or not monetarily rewarded at all. Unpaid work, such as childcare or essential domestic labour, while critical for societal function, is often difficult to quantify economically.
Gendered Distribution
Even when both men and women engage in paid and unpaid activities, the nature of this work is often gendered. Women tend to focus more on the service sector and domestic responsibilities, including significant time spent fetching water in many developing countries, while men are more prevalent in the industrial sector.
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
- Larsson, Allan. "Empowerment of the Poor in Informal Employment." Commission on Legal Empowerment of the Poor (Jan. 2006): 1รขยย10. Print
- 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. 36รขยย57. New York: United Nations Development Fund for Women
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Important Notice
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