The Importance Of Global Employment

Global employment otherwise referred to as a global workforce, is a reaction to the changing world we live in. More businesses and markets are becoming globalized, and the era of relying on a single country as both a customer and supplier will stifle growth. Now that the world is recovering from a post-lockdown era, the global labor force has slightly recovered. In 2021, the global labor force numbered 3.45 billion people. While during the pandemic, the World Bank estimates that the global labor force dipped from 3.46 billion in 2019  to 3.39 billion in 2020. 

The effects of COVID-19 left 33 million people without jobs. It contributed to a rise in the global unemployment rate, totaling 220 million unemployed people. Fortunately, such a vast pool of available jobs and talents around the world can be put to good use. One country can complement another, not every country in the world is blessed with a variety of talent that can fulfill their workforce needs. 

In the United States alone, the need for blue-collar workers has risen dramatically. In fact, immigrant farmworkers make up an estimated 73% of all agricultural workers in the United States. The underlying reason may be that Americans simply don’t want to work manual labor or are too expensive to hire, and almost the same case can be seen in Canada and richer European countries.

While in the Middle East, primarily in the UAE and Qatar, which both have small local populations, that aren’t sufficient to meet the required number of people to handle basic services and the base of education. Their solution is to bring in migrant workers from all over the world, with the majority of them being South Asians for blue-collar jobs, and western educated individuals for white-collar jobs.  

On the contrary, the rise of remote work had alleviated the need for people to physically work in a specific location. Now that work can be done remotely, outsourcing services helped offset the demand or shortage of workers in certain locations such as the US, UK, and Australia. Essentially, the importance of global employment changes the nature of how we perceive a workforce, which can be done remotely or on location. The issue at hand is whether or not companies employing abroad can handle all administrative duties by having locations and employees distributed globally, and how outsourcing globally can help fill in the gap. 

Emigrant And Immigrant Workforce 

Migration is a process of moving, either to another country or within a country’s other region. In contrast, an emigrant is defined as a person leaving a location with the intention of relocating to another permanently, an immigrant is a person that had moved to another country and are seeking to become permanent residents. In terms of global employment, migration is important to augment existing and future demands of the country’s labor needs. 

As advanced economies experience slowing birth rates, and fewer women are choosing not to have children, the issue of workforce shortages is bound to happen, the prime example is Japan. Japan’s shrinking population due to a declining birth rate and rapidly aging population will result in massive shortage of workers. In an article published by Nikkei Asia, states that Japan will need 6.74 million foreign workers in 2040.  It is suggested that workers from Cambodia, Myanmar, and the Philippines will likely augment those numbers. 

Remote Workers Transcend Borders

Remote work refers to the ability of individuals to perform their job duties from a location outside of a traditional office setting, often using technology such as the internet and video conferencing tools. Remote work has become increasingly popular in recent years, especially due to the COVID-19 pandemic, which has led many companies to adopt remote work policies in order to keep their employees safe. This means that companies can hire employees from anywhere in the world, even if they’re not located in the same country as the company’s physical offices. 

Remote work also offers a range of benefits for employees, including increased flexibility, the ability to work from home, and the potential for higher pay. However, it is important for companies and employees to carefully consider the potential challenges and limitations of remote work, such as communication issues and the potential for isolation. Overall, remote work allows for the creation of a global workforce that can work from anywhere, bringing together diverse groups of people from around the world to collaborate and achieve common goals.

Global Employment As A Solution To Workforce Shortages

Global employment refers to the concept of companies hiring employees from around the world to work remotely or at various locations around the world. Global employment can help address labor shortages in certain countries and provide opportunities for career advancement and better pay for workers in developing countries. 

Outsourcing, which involves hiring a third party to perform tasks or services that are typically done in-house, is a form of global employment that can allow companies to access a wider range of skills and expertise, often at a lower cost than if they were to hire locally. 

The Bottom Line

In conclusion, global employment, including the use of remote work and outsourcing, has become an important solution to address workforce shortages and meet the changing needs of businesses in an increasingly interconnected world. It allows companies to access diverse pools of talent and expertise, provide opportunities for career advancement, and better pay for workers in developing countries.

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