World employment 1995 : an ILO report

The impact of globalization of the world economy on employment throughout the world was examined by determining the causes and effects of the reduction in economic growth that has occurred in most developed and developing countries since 1973. The following were among the factors considered: international inequality; new technologies; effects of globalization on labor demand and labor standards; and policy responses to globalization (trade and industrialization; foreign direct investment, adjustment measures, labor market regulation). The effects of reduced economic growth on a given country's employment patterns/levels were found to depend on that country's way of responding to inadequate growth. The view that labor market rigidity is the main cause of poor employment performance was refuted. It was concluded that, although globalization generates real employment problems (unemployment, declining relative wages, and reduced job prospects), its potential benefits far outweigh its costs. The optimal strategy for encouraging economic development in a global economy was said to be to reap the considerable gains of continued globalization in terms of higher output and efficiency while developing appropriate national and international policies to deal with the social problems engendered by globalization. Contains 42 tables/figures and 216 endnotes.) (MN).