Publication

A new model for the globalization of the world of employment

A new model for the globalization of the world of employment

Two opposing trends characterize the global world of employment. In the global South, the supply of labor is increasing,
while the global North is confronted with a decline in the working population and a shortage of qualified workers.
Both developments have demographic causes. Many countries in the global South continue to have high birth rates. The
resulting population growth, combined with improved access
to education, is leading to a significant increase in the working
population. Despite comparatively high growth rates, very few
economies in the South are creating enough jobs to provide
all young jobseekers the prospect of an economically viable
and secure future. Typical consequences are social instability
and uncontrolled migration to the supposedly greener pastures in the North.
Conversely, the global North is struggling with the challenges
of low birth rates, ageing and in some cases even shrinking working population. The so-called baby boomers, the generation born between 1946 and 1964, are gradually retiring.
The number of young people now entering the labour market is insufficient to fill the jobs that the baby boomers are
vacating. The result is shortage of supply in skilled workers
in many sectors. For many companies, the lack of qualified
employees is becoming an existential threat. In macroeconomic terms, the shortage of skilled workers negatively impacts
growth and prosperity in the affected economies.
In real terms, the seemingly simple solution of migrating skilled labor from the South to the North to meet the growing
demand is now increasingly becoming a complicated affair.
After a decade of record immigration of refugees to the global
North, the willingness to take in more people has drastically
reduced. The fear of a supposed “over-foreignization” has driven the poll ratings of populist parties on the extreme right to
record highs.
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