Labor Markets In The Global Economy

Labor In The Global Economy

One Labor Pool. A Buyer's Market.

This section is directed at those wise enough to extrapolate today's facts and see the future.

Until the latter decades of the 20th century labor was a local phenomenon.

Today special interest groups are empowered in several nations that were built upon free enterprise, capitalistic systems and values: May the best man win !

Today's hiring decisions often operate under the guise of certain group's claiming to have been repressed and suppressed for so long that they need extra hiring allowances in order to lift them through everything from glass ceilings to unfair circumstances.

These falsely empowered special interest groups will fail when realities of the global economy become inescapable. To guess when this might occur just look back over the last three decades, review today's labor force composition and factions, and then extrapolate.

These falsely empowered special interest groups understand that they need to capitalize on today's emotionalized hiring practices that can still afford to hire less than the best person. Over time economic realities will prevail and the force of equalization will be undeniable, more impacting, and fully realized across the world. Hiring will depend more completely upon skills and costs... not social and cultural characteristics.

The labor force is rapidly becoming global. That means that there is labor in multiple nations that can perform work as effectively or more effectively than in the US. Raw materials can be shipped anywhere. Finished goods can be shipped anywhere for consumption. That means the intermediate process -- the application of labor -- can be performed anywhere.

Over time the value of any one clump of labor will see its value increase or decrease to meet the norm of its industry. Over time more labor clumps will be perceived as equal to others regardless of what nation or where within any nation the labor is applied to production.

A consequence of this normalization of all labor clumps within the global labor force will be the loss of any one group's ability to force feed a specific labor clump to employers. Employers will simply ship raw materials to the best labor clump and ship finished products to consumers.

Of course the US economy is very large and continues to absorb less qualified, force fed labor. This will end. The end will be mandated by economic realities of the global economy.

Today US companies are becoming less able while other nations including China, Germany, and India are developing higher caliber labor forces and becoming competitive.

See also: Timing

The investment axiom that is always valid: Caveat Emptor

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