The Effects of Globalization of the Labor Market essay

Globalization is one of the important modern phenomena. This is the process of world economic, political and cultural integration and unification. The labor market is a major subsystem of the economy and is one of the most reliable indicators of its change.

The issue of globalization of the world labor market rises in connection with the globalization of world economy. The profound changes in the processes of employment, work organization, the structure of employment, labor relations pose the problem of the evolution of the world labor market for economic science. In these circumstances, the study of international migration issues and concerns of the international regulation of labor relations go to the fore.

A global division of labor, capital, and human and production resources migration across the planet, standardization of economic and technological processes, convergence and fusion of cultures of different countries are the main consequence of globalization of the world labor market. International labor migration is the process of emigration and immigration of people of working age in order to obtain work outside their country of residence during a certain period of time. The quantitative composition of legal immigrants is 200 million people, half of which come from developing countries (Rama, 2003).

The dynamics of globalization makes the existing territorial and economic borders easily permeable, so the most pressing issue today is the process of “destruction of the border” (Dumont, 2011). Moving people from one country to another is becoming more free and accessible; it causes such problems as uneven migration, inconstancy of migration flows, and social inferiority. The question how to allocate and utilize human resources is becoming increasingly important. The processes of globalization on the labor market determine its direction and impact on the three main parameters: the labor demand, labor supply and the price of labor.

Speaking of labor migration and the consequences that have an impact on the recipient country, it is possible to note the negative side, and the problems caused by this phenomenon. First, the more active workers from other country create competition and displace the population of the host country accustomed to a more measured way of life. Second, there is the problem of “mood” of visiting workers. Migrant worker always feels like being “denial of rights” and he is aware that members of the host society are always on the level above. Third, there is a problem of inter-faith diffusion and contradictions stemming from it.

The principle of cross-cultural interaction between nations plays a significant role in the formation processes of globalization and internationalization of labor markets. An education that prepared the fundamental development potential of globalization still has a central role. Today globalization of labor market is an important issue for higher education, because the introduction of the constituent elements of globalization and internationalization to the process of formation determines, in essence, the model for future education or otherwise – skill level of labor. Globalization has developed a need to get higher and qualitative education, creating a single standard. For instance, universities are the standards of education, recognized by the international community.

It is also worthy of noting that there were formed two manufacturing centers as a result of the globalization of the labor market: the developed countries and the “third world”. It is noteworthy that both types are involved in production, but their role is different. “Brain trust” is located primarily in Europe and the United States of America. This is the development center of IT, high-tech, design, fashion, a center of ideas and plans for their further implementation. On the contrary, the realization of these ideas takes place in the “third world” but the profit and cash flow still remains minimal in developing countries.

Problems arising from the globalization of the labor market:

There is a “brain drain”; the mainstream countries are interested in attracting young professionals, with high level of education. Some developing countries review this problem as a threat to national development, since the unrestricted emigration leads to the depletion of valuable human resources (Cuyvers, 2011).

Economic development has become harmful not only for the Earth’s ecosystem, but also for a personality. The actions of transnational companies on the world labor market to dictate consumers the rules, direction and style of consumption. Thus, there is the imposition of values ​​and attitudes, by which blind people are guided. There is a change of social values: the desire to make money is higher than family values. The technological changes associated with computerization and informatization of manufacturing activity lead to an increase of the role of the “past labor” embodied in computers, software tools and robots, by reducing the role of living labor. This implies two consequences: stable mass unemployment, a violation of the process of maintaining profits and worsening of the existing problem of its implementation. There is also the developing trend – downward pressure on wages for unskilled workers. Not overcrowded labor market offerings still need to be considered as the main cause of mass unemployment in the developed countries but an extensive system of social assistance, which reduces incentives to seek employment, reduces the level of real wages.

Thus, it should be noted the increasing role of globalization on the labor market all over the, to education as a process of training and production. Employers and employees take an active role in the spreading of this phenomenon, the introduction of the standard of education is welcomed, and the transferring of production from developed countries to developing ones, with preservation of capital in the first place. The negative impact of globalization on these processes is not so perceptible but it’s possible already to see the beginnings of countering this phenomenon: from both developed countries (high influx of people, the fear of imbalance in the population, creation of competitive local employees), and from developing countries (“brain drain”, change the gene pool). On the other hand, the globalization of the labor market facilitates economic cooperation between states, creates the conditions for access to the best achievements of mankind, saves resources, and stimulates the progress of the world. The globalization of the labor market is a normal and inevitable process.