Thursday 26 May 2016

Globalization induced labor displacement




Though global migration is seen as a growing necessity, most countries impose restrictions prohibiting mobility of individuals. The Economic Intelligence Unit briefing report ‘Paper Chase – Document fraud in the Immigration process’, states that even though host governments are in favor of allowing inward migration, the proliferation of fraudulent documentation is on the rise, causing delays in the immigration screening process. The risks posed by fraudulent documents are on the rise and the forged documents industry links directly to people-smuggling / human-trafficking and other organized crimes.
The percentage of resume fraud in India has seen an increase. Firms have already begun sharing the database of job applicants who have faked information in their CV’s. IT sector is the second most affected vertical, while the banking sector has the highest discrepancies, when it comes to fudged resumes. One in every four CVs received by the IT services firms is known to have discrepancies. And one in every six CVs in the BPO industry is fudged. While the problem is dominant at the fresher level, it goes up to the senior levels as well.
In the developing country, the final employment impact of increasing trade depends on the interaction between the productivity growth and output growth – both in traded goods sectors and in non-traded sectors. While on hand exports involve demand-led employment growth, but – on the other hand – imports may displace previously protected domestic firms, including labor redundancy. In the presence of supply constraints, productivity growth may exceed output growth even in the exporting sectors, to the detriment of job creation. Therefore, sheltered sectors in the labor market may act as labor sinks, often implying hidden unemployment and underemployment. These incident labor sinks are the areas of employment which are filled by the out-of-state migrant workers.






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