Impact of Globalization on the Australian Labor Force - Essay Example

IMРАСT ОF GLОBАLIZАTIОN ОN THЕ АUSTRАLIАN LАBОR FОRСЕ Name: Course Instructor’s name Institution Date IMРАСT ОF GLОBАLIZАTIОN ОN THЕ АUSTRАLIАN LАBОR FОRСЕ Introduction This paper seeks to assess the impact of globalization on the Australian labor market which has been on an increasing trend in recent years. Globalization has brought about changes that have had a major impact on the labor force in Australia. Due to globalization there has been a demand for reforms in the labor force to match with technological changes brought about by globalization. The major impact of globalization in the labor market is that it has always been in favor of high-skilled labor and against low skilled labor. Globalization is not a new phenomenon as it has played a major role in transcontinental transactions that has led to migrations all over the world. Globalization has brought about many environmental changes which have in turn had an impact in the workforce. The workforce in Australia is feeling the effects of globalization in that globalization has made the movement of capital, commodities and human labor a worldwide phenomenon. The papers seeks to determine how the labor force has been affected by globalization and its rapid changes. It will emphasize on the impact of globalization on the labor force and try to come up with ways to respond to the numerous threats caused by globalization. Globalization has seen skilled employees migrate to developed countries for better pay and working equipment. Australia being an industrialist country it has had its own share of employee migrants to developed countries like the US and UK. Globalization has made the world a common place, and transportation has made it easier to travel far and wide. Cultures have been harnessed due to globalization; countries are politically stable, unlike the past. Economies are growing at tremendous rates all over the world, and a country that doesn’t seem to keep up with globalization will always lag behind. The economy of Australia has undergone major changes influenced by globalization. Globalization has reduced barriers to labor mobility across nations and economies. Therefore, this assessment will focus primarily on the impact of globalization on the Australian labor force which an emphasis advantages and disadvantages presented by globalization. Globalization and outcomes in the labor market Technology has had tremendous effects on the labor force as it has made work easier for the employees. The ability to use machines to do work has seen an increase production. Globalization has brought about an increase in demand and market shares as organizations are able to transact globally with a lot of ease (Paul &Robert, 2006). Communication has been made easier, and this has brought about movements championing for employee rights. Some years back Australia was ranked as the 13th most globalized nation in the globe, and globalization has had a major influence on the labour market unlike on any other sector in the Australian economy. The Australian local market had to be adjusted to meet the industry demands that sought after skilled labour. Globalization brought about complicated gadgets and machines that need expertise in handling them thus the growing demand for skilled labor in Australia over the years (Kelly and Giles, 2005). Globalization has brought about increased operating costs, and this has seen some organizations retrench their workers having that technological gadgets can do more work than an employee. Moreover, most organizations in Australia are concentrating on how they can use technology to cut their operating expenses as save money for research and development. Organizations are seeking technology to help manage their business and only the highly skilled are assured of maintaining their jobs while the lowly skilled undergo a lot of uncertainties. Globalization has had its own share of advantages as well as it has seen job creations and reduction of general operating costs (Scholte, 2000). Globalization has increased foreign investments in Australia as more multinational are entering the market and thus creating more job opportunities in the labour force. There has been a presence of international employees in Australia over the years, and this has majorly been impacted by globalization of the world labour market. Globalization has been a driving force in international migrations as there are no barriers for entry into labour markets more so Australia. For example, 21% of the workforce in Australia is foreign. Labour flows are very important to the industrial development and prosperity, and Australia has always made sure their market remains attractive foreign employees (Bryan and Rafferty, 1999). Globalization has also affected the Australian labour market as it has changed the demand and supply of jobs all over the globe, creating employment opportunities and risks on an equal measure. AWPA states that Australia needs a high skilled workforce to maintain and improve its economic position in the face of the ever rising global competition thus globalization has made the agency to structure its workforce on a global context format( Hugo, 1994). The number of jobs that require a lot of skills is increasing exponentially and therefore strategies need to be formulated to increase and deepen skills for the future and to find ways to cater for the demand of high skilled employees. The Australian government implemented changes to the migration policy aimed at meeting employer demands while catering for future needs. Globalization has brought a new culture of globally connected professionals who can work freely in any part of the world. Due to globalization there has been proliferation of culture (Rudd and Harris 2001).OECD countries have had static labor markets over the years, but significant changes have been witnessed more so due to globalization. Employment opportunities are minimal in Australia as many employees have been forced to seek further education, become self-employed, or retire earlier as many companies seek high-skilled employees (OECD, 2001). Years ago Australian workers could start out in low-paid vacancy and work their way up as they gained the needed job experience. Now the growing casualization of low-wage work implies that although substantial competition exists for these kind of jobs, there is little career progression. Globalization has posed a major challenge for Australia in that most of their high skilled employees are seeking better salaries elsewhere and this has been necessitated by the diminishing value of the Australian dollar. This brain drain more so on the Australian workforce will accelerate as the global economy expands due to globalization. Due to the high social, economic groups of employees there has been a decline of full time employment in Australia to 69% from 89% this has seen a surge in part-time and casual work. Due to a high number of flexible workplaces, an increase in subcontracting, an extension on the trading hours and due to some work and facility considerations (Kelly and Giles, 2005). Changes on technology has had a major influence on the labor force in Australia. For instance, printing processes in Australia once comprised of heavy machinery controlled by tradespersons in what was basically a manufacturing industry. Employees in the printing industry are working using computers in order to come up with customized designs for clients. On a social scale, Australia has benefited a lot from globalization in that most people are able to interact and work freely with foreigners in Australia. Due to the number of immigrants in Australia, it enjoys multiculturalism that has enriched the society in Australia (OECD, 2001). Foreigners are not afraid to work in Australia having that it respects other people’s cultures and values. Most importantly they enjoy freedom of worship. Through social globalization Australia seen an increase in high-skilled employees and foreign direct investments which have created jobs in Australia. Migrants are filling critical skill jobs, and medicine has a low labor market hence one out of six employees in the medical field is a foreign employee. The great recession affected Australia as many employees lost their jobs due to the global effects it had on many nations. Australia’s manufacturing industry declined for 26 consecutive months, and this greatly affected the workforce immensely (James, 2002). Globalization as a whole has an effect on the labour force having that the labor market in Australia relies heavily on social, economic and political processes. Passion of employee and their commitment levels have been attributed to the fall of some manufacturing plants. The Australian labour force has a shortage of some skills in some areas of the industry, and that threatens wage inflation having that productivity growth has been weak over the past 10 years. Australia realizes that the only way to increase productivity is to maximize the skills and contributions of employees. Tertiary institutions of higher learning play a major role in the labour force in Australia thus there has been a rise in demand for lecturers from technically sufficient countries like japan and the US. This is evident in that the labour market has become homogeneous, and there is an increase in demand for dynamic employees with “global” skills (Burtless, 2001). Globalization has brought about the sharing of ideas between different labour markets. Experts are being shipped to do projects that require specialized skills. Multinationals like Google, Microsoft have enhanced the international division of labour in Australia. These multinationals play a significant role in the way the workforce is structured and a global need for standardized products and skills.Industrial advancements in Australia have been attributed to technological processes of globalization. Among the foreign employees in Australia, research has shown that Asia has the highest number of employee emigrants. Labour-market reforms have been witnessed since 1983 almost at the time globalization was maturing. Australia’s low paid workers are among the best paid in the world this comparison has been made possible through economic globalization that defines currencies and exchange rates. The labor force in Australia is similar to that of the United States and the United Kingdom, and this has been attributed to globalizing processes (James, 2002). The advantages of having a skilled labour force are tremendous. Some activist groups in Australia have argued that if the rise in global trade and flow of capital has brought about vulnerability in the Australian workforce. Just like any other industrialized country the labour force in Australia fear of being replaced by cheap labour and at one point non-white immigrants were not allowed into Australia. Some countries are against globalization due to the uncertainties it causes (Mahroum, 1999). Australia enjoys almost all the benefits brought about by globalization if not all. It has a large pool of human capital; their transportation systems are more advanced and recent. The economic standards in Australia mean the wages in that country are fairly good. The ability to attract international business has seen an increase in demands for standardization. The labour unions protect the workforce while the commonwealth overseas over them. This is sufficient enough to conclude that globalization has transformed the labor market of Australia, and more changes are yet to come (Bryan and Rafferty, 1999). Conclusion Globalization has seen an increase in international labour supply; it has also played a major role in advancing the economies of various countries. The global labour supply is sufficient and over the years we have seen some multinational directly invest in Australia and bring on board skilled employees. From this assessment it’s evident that the Australian labour force has been compromised by globalization and there is a major need to have tertiary institutions teach students on the technical skills that are prevalent in the labour market (Bryan and Rafferty, 1999). Globalization has brought about rapid changes, and organizations and institutions should be ready to embrace the changes and develop their labor force along them. Labour force skills are the important factors in defining the rate at which the potential of technologies can be realized. Therefore, Competition and emulations encourage organizations to pursue the potential reductions in operation costs and other savings brought about by global technologies, these technologies are of little importance without the right labour force and skills (World Economic Outlook, 2007). Globalization has brought about competition for skilled employees both locally and globally thus, every country should structure its workforce in a way that it can effectively outdo this competition. Human skills are central to the economic growth of any specific country and Australia should enhance its Skills in the labour market in order to produce and innovate effectively. Moreover, human resource is essential as it helps maintain a vibrant market and economy (Rosenberg, 2000). I am of the opinion that Australia’s global ranking should be a blessing in disguise for them, and they should, therefore, capitalize on their strong position to attract skilled employees instead of losing them. With the high unemployment rates in Australia, the labor organization should encourage youth to travel overseas and prevent the unemployment gap from reaching a breaking point. Reference Bryan, D. and Rafferty M. 1999. The Global Economy in Australia. Sydney, Allen, and Unwin. Burtless, G. 2001. ‘How Can Supply Side Policies Reduce Unemployment?’.Australian Journal of Labour Economics, Australian Journal of Labour Economics, Vol. 5, pp. 115 – 142. Hugo, G. 1994. The Economic and Social Impacts of Emigration on Australia Canberra: AGPS Hugo, G., D. Rudd and K. Harris 2001. Emigration from Australia: Economic Implications, Centre for the Economic Development of Australia (CEDA) Information Paper No. 77. James, J. 2002. Technology, Globalization, and Poverty, UK: Edward Elgar Publishing Ltd James, Paul, Robert 2006. Globalization and Economy, Vol. 4: Globalizing Labor. London: Sage Publications Mahroum, S. 1999. ‘Highly Skilled Globetrotters: The International Migration of Human Capital’. Norris, K., R. Kelly and M. Giles 2005. Economics of Australian Labour Markets, Frenchs Forest:Pearson. OECD, 2001. International Mobility of the Highly Skilled, proceedings of the seminar on International Mobility of Highly Skilled Workers. Rosenberg, J. 2000.The Follies of Globalization Theory, London Seville, Institute for Prospective Technological Studies Joint Research Centre of the European Commission, pp 168-85. Scholte, J.A. 2000. Globalization: A Critical Introduction, New York. St Martin’s Press. World Economic Outlook, 2007. The Globalization of Labor. International Monetary Fund. 2007. Read More