WTO warns of global ramifications of local labour policies shortcoming
, ET Bureau|
Updated: Sep 28, 2017, 06.01 PM IST
NEW DELHI: The World Trade Organization (WTO) has warned countries of global ramifications due to shortcoming in their domestic labour policies.
In its World Trade Report 2017, the organisation said: “Today’s labour market problems are largely traceable to domestic policy shortcomings, but a failure to find answers could have global ramifications.”
WTO noted that adjusting to economic change is a global challenge that requires a global response. The fact that some countries seem to be adapting to technological change and globalization better than others, by reducing obstacles to labour mobility suggests that government policy can play an important role in helping economies and societies to adjust to a changing world,it said.
The report showed that India and China have experienced a relative decline in the labour force participation of both men and women.
Between 1990 and 2016, China’s participation fell from 77% to 71% while India’s rate dropped from 59% to 53%.
The report showed that the estimated share of jobs at risk of automation is also substantial in emerging economies, such as 69% for India and 77% for and China.
The report quoted studies saying that casual employment accounts for 66% of all wage employment in India and that physical distances have likely played a role in limiting the movement of workers in rural India.
Economies in Sub-Saharan Africa and South and Southeast Asia experience particularly high informal employment, such as Cambodia (77 %), India (80%), Madagascar (97%), Mali (76%), Nepal (91%) and Zimbabwe (94%).
Given the sectoral structure of their employment, women may also face higher tariff barriers to export. Existing evidence on India shows that women tend to work in sectors that face higher barriers to export in the destination country.
“The result that trade has widened regional disparities in terms of wages and employment is quite general,” WTO said.
In its World Trade Report 2017, the organisation said: “Today’s labour market problems are largely traceable to domestic policy shortcomings, but a failure to find answers could have global ramifications.”
WTO noted that adjusting to economic change is a global challenge that requires a global response. The fact that some countries seem to be adapting to technological change and globalization better than others, by reducing obstacles to labour mobility suggests that government policy can play an important role in helping economies and societies to adjust to a changing world,it said.
The report showed that India and China have experienced a relative decline in the labour force participation of both men and women.
Between 1990 and 2016, China’s participation fell from 77% to 71% while India’s rate dropped from 59% to 53%.
The report showed that the estimated share of jobs at risk of automation is also substantial in emerging economies, such as 69% for India and 77% for and China.
The report quoted studies saying that casual employment accounts for 66% of all wage employment in India and that physical distances have likely played a role in limiting the movement of workers in rural India.
Economies in Sub-Saharan Africa and South and Southeast Asia experience particularly high informal employment, such as Cambodia (77 %), India (80%), Madagascar (97%), Mali (76%), Nepal (91%) and Zimbabwe (94%).
Given the sectoral structure of their employment, women may also face higher tariff barriers to export. Existing evidence on India shows that women tend to work in sectors that face higher barriers to export in the destination country.
“The result that trade has widened regional disparities in terms of wages and employment is quite general,” WTO said.
