Labor Forces Chapter Eleven McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

Learning Objectives Identify forces beyond management control that affect the quantity and quality of labor Explain the reasons that cause people to leave their home countries to work abroad Discuss why some countries have guest workers Explain factors associated with employment policies including social roles, gender, race, and minorities Discuss differences and trends in labor unions among countries

Labor Quality and Quantity Quality, quantity, and composition of labor force are of great importance to an employer Labor Quality The skills, education, and attitudes of available employees Labor Quantity The number of available employees with the skills required to meet an employer’s business needs LO1

Worldwide Labor Conditions and Trends Overall size and sector of the work force International labor trends Aging of populations Rural to urban shift Unemployment Immigrant labor Child labor Forced labor Brain drain Guest workers LO1

Primary Occupation of National Labor Force LO1

Percentage of the Population aged 65 or More LO1

Unemployment 3.1 billion workers in 2008 (per UN, ILO) 200 million overall are unemployed Middle East and North Africa (13.2%) Sub-Saharan Africa (9.7%) Central and Eastern Europe (9.7) Latin America and Caribbean (7.7) Developed economies (6.7%) Southeast Asia and the Pacific (6.1%) South Asia (4.7%) East Asia (3.8%) 45% of unemployed are between age 15 and 24 LO1

Labor Mobility Labor Mobility refers to the movement of people from country to country or area to area to get jobs Immigration refers to the process of leaving one’s home country to reside in another country Foreign-born Population comprises those immigrants whose move is permanent and may include taking citizenship Foreign Population who are guest workers LO2

Nations With the Highest Number of International Migrants LO2

Labor Child labor The labor of children below 16 years of age who are forced to work in production and usually receive little or no formal education Primarily found in developing nations Existent in developed countries 70% are in agriculture Forced labor (27 million today) mostly in South and East Asia Northern and western Africa parts of Latin America LO2

Brain Drain Brain drain refers to the loss by a country of its most intelligent and best-educated people Record numbers of immigrants are moving to OECD countries in search of jobs When skilled workers migrate from developing countries they do so for professional opportunities and economic reasons Reverse brain drain refers to the growth of outsourcing and the movement of highly educated, technologically skilled employees and research scientists to other countries LO2

Brain Drain LO2

Foreign-Born Individuals with Science or Engineering Ph.D. LO2

Guest Workers Guest workers are people who go to a foreign country legally to perform certain types of jobs Guest workers provide the labor host countries need Guest workers are desirable as long as the economies are growing When economies slow, fewer workers are needed and problems appear LO3

Considerations in Employment Policies Social Status Important with respect to labor force, especially in some cultures Caste: the group to which people belong in a system under which people’s place or level in a multilevel society is established at birth as being the same level as that of their parents Sexism refers to the acceptability of women as full and equal participants in the work force ranges widely Worldwide, 59% of all businesses include women in senior management positions LO4

Women’s Education Studies show a direct correlation between women’s education and birthrates child survival rates family health a nation’s overall prosperity LO4

Female Illiteracy LO4

Women in Parliament LO4

Maternity Leave LO4

Ratio of Wages, Woman versus Men, Selected OECD Countries LO4

Racism Black and White conflict U.S., South Africa, Great Britain and elsewhere Arab-, Indian-, or Pakistani and Black conflict Africa Tamils and Sinhalese Conflict Sri Lanka LO4

Minorities Traditional Societies Tribal peoples before they turn to organized agriculture or industry; traditional customs may linger after the economy changes Minorities A relatively smaller number of people identified by race, religion, or national origin who live among a larger majority LO4

Employer-Employee Relationships The labor market refers to the pool of available potential employees with the necessary skills within commuting distance from an employer A company must study the labor market when considering whether to invest in a country Sources include Foreign Labor Trends Handbook of Labor Statistics Yearbook of Labor Statistics LO5

Country Strike Rates Selected OECD Nations LO5

Labor Unions European labor Identified with political parties and socialist ideology United States labor Laborers already have many civil rights Collective bargaining A union represents the interests of a bargaining unit (sometimes includes both union members and nonmembers) in negotiations with management LO5

Labor Unions Japanese unions are enterprise-based rather than industry wide Unions tend to identify strongly with company interests Research shows that of all developed country workers, Japanese workers are the least satisfied with their jobs LO5

Labor Union Membership Trends Employers have made efforts to keep their businesses union-free More women and teenagers have joined the work force, low loyalty to unions The unions have been successful in raising wages, which leads to offshoring In the knowledge economy, industrial jobs that have formed the core of union membership are declining LO5

Multinational Labor Activities Internationalization of companies creates opportunities for them to escape the reach of unions In response, unions have begun to collect and disseminate information about companies consult with unions in other countries coordinate with those unions’ policies and tactics encourage international companies’ codes of conduct Multinational unionism is developing LO5

Multinational Labor Activities The International Labor Organization (ILO) promotes social justice and recognizes human and labor rights worldwide The Trade Union Advisory Committee to the OECD consults on trade union issues in global markets LO5

Union Membership Across Countries LO5