One out of Four Workers Has a Stable Job

workers don't have a stable job

workers don’t have a stable job

Only one quarter of the world’s working population holds a permanent and stable job, according to a new report published by the International Labor Organization (ILO) Tuesday.

Even as the number of unemployed people worldwide remains significantly higher than before the 2008 crisis, the few jobs that have been created in recent years have been disproportionately part-time, contingent and low-wage.

The ILO’s World Employment and Social Outlook—Trends 2015 report found that three-quarters of workers are “employed on temporary or short-term contracts, in informal jobs often without any contract, under own-account arrangements or in unpaid family jobs.”

The report notes that worldwide more than 60 percent of workers do not have any sort of employment contract, with most of them working on family farms and businesses in developing countries. But even among those who earn wages or salaries, less than half—only 42 percent—are employed on a permanent basis.

In what are categorized as high-income countries, the share of workers employed on a permanent basis has declined in recent years, from 74 percent in 2004 to 73.2 percent in 2012. For males this decline has been even sharper, with the share working on permanent contracts falling from 73.1 percent to 71.2 percent during the same time.

The report likewise found a global rise in part-time employment. “In the vast majority of countries with available information, the rise in the number of part-time jobs outpaced gains in full-time jobs between 2009 and 2013.”

The ILO notes,

“In France, Italy, Japan, Spain and the [European Union] more broadly, increases in part-time employment occurred alongside losses in full-time jobs—leading in some instances to overall job losses during this period.”

Since 2009, the number of full-time jobs in the European Union fell by nearly 3.3 million, while part-time employment increased by 2.1 million.

Meanwhile, legal protections assuring workers a stable employment schedule have been slashed, with the ILO noting that, “labour protection has generally decreased since 2008.”

“The shift we’re seeing from the traditional employment relationship to more non-standard forms of employment is in many cases associated with the rise in inequality and poverty rates in many countries,”

said Guy Ryder, Director-General of the ILO.

The report found “a shift away from the standard employment model, in which workers… have stable jobs and work full time. In advanced economies, the standard employment model is less and less dominant.”

This phenomenon was mirrored in developing countries where,

“at the bottom of global supply chains, very short-term contracts and irregular hours are becoming more widespread.” As a result, “in emerging and developing economies, the historical trend toward more wage and salaried employment is slowing down.”

The report notes that “nearly eight years have passed since the first signs of crisis emerged in the global economy,” yet “the more recent period has seen global unemployment march higher” and has been “characterized by an uneven and fragile job recovery.”

The ILO estimates that the number of people unemployed worldwide hit 201 million last year, up by 30 million since the eruption of the global financial crisis in 2008. The report notes that, far from making any significant dent in the number of people unemployed worldwide, “providing jobs to more than 40 million additional people who enter the global labour market every year is proving to be a daunting challenge.”

The ILO notes that employment growth has largely stalled worldwide, with the number of jobs available growing by only 0.1 percent each year in developed countries since 2008, compared to a rate of 0.9 percent between 2000 and 2007.

This has corresponded with an overall slump in economic growth. For the “advanced economies” as a whole, growth in the period between 2007 and 2014 averaged about 0.7 percent per year, compared with an annual growth rate of two percent in the period before the crisis.

The report warned that falling wages and continued mass unemployment have contributed to a structural weakness in global demand, resulting in a further slump in the labor market. Director-General Ryder added,

“These trends risk perpetuating the vicious circle of weak global demand and slow job creation that has characterized the global economy and many labour markets throughout the post-crisis period.”

The increasing prevalence of low-wage, part-time and contingent work has coincided with a massive enrichment of the financial elite. Since 2009, the wealth of the world’s richest 400 individuals has nearly tripled, from $2.4 trillion to $7.05 trillion in 2015, according to Forbes magazine. This massive growth of inequality has been the direct outcome of policies carried out by governments throughout the world, which responded to the 2008 crash by pumping trillions of dollars into the financial system while slashing social services and promoting poverty-wage employment.

The findings of the report constitute a scathing indictment of the capitalist system, which is incapable of addressing mass unemployment, poverty or any other social problem. Developing countries, robbed and exploited by imperialism, remain backward and impoverished, while in the “advanced” economies the ruling classes have carried out a relentless assault on jobs, wages and living conditions for the great majority of the population.

There is nothing in the 155-page report to indicate any prospect for improvement in the near future. This fact constitutes an implicit admission that soaring inequality, falling wages, mass unemployment and increasingly contingent employment constitute essential features of the present social order.

 

Source:  globalresearch.ca

Elites Are Lowering Everyone’s Wages and Standard of Living

 

 

The Elites Are Unanimous: Lower Everyone’s Wages and Standard of Living — Except They Don’t Say it Out Loud:

The Elites Are Unanimous: Lower Everyone's Wages and Standard of Living -- Except They Don't Say it Out Loud

The Elites Are Unanimous: Lower Everyone’s Wages and Standard of Living — Except They Don’t Say it Out Loud

Calls for a bipartisan “Grand Bargain” on taxes and spending for the next decade ring out daily, if not hourly, from the politicians and pundits who dominate our political media. But the national discourse is silent on the tacit agreement both parties have already made on the future that lies ahead for the majority of working Americans: a dramatic drop in their living standards. The United States can no longer satisfy the three great dreams that have driven most of its domestic politics since the end of World War II: the multinational corporate class’s dream of limitless profits; the military-industrial complex’s dream of global hegemony; and the dream of the people for rising incomes and expanding opportunities. One out of three? Certainly. Two out of three? Maybe. All three? No. So far, Corporate America gets priority boarding in the economic lifeboat – with the safest seats reserved for Wall Street. Four years after the crash, the financial sector remains heavily subsidized with cheap federal loans that it uses to buy higher yielding bonds, speculate in exotic IOUs and pay outrageous salaries to those at the top. Larger than ever, they are more than ever “too big to fail.” As a result, Wall Street continues to divert the nation’s capital away from investment in sustainable high-quality jobs in America. Next in line is the Pentagon and its vast network of corporate contractors, members of Congress with military facilities in their districts and media propagandists for the empire. The administration, along with some libertarian Republicans, insists that military spending will not be spared in the coming era of austerity, and has proposed modest cuts over the next decade. At the same time, virtually all of Washington supports the policies that require huge defense budgets, i.e., remaining in the Middle East, expanding in Latin America and containing China in its own neighborhood. The threatened across-the-board cuts in federal spending that become automatic if a long- term budget deal is not made by December will almost certainly be finessed in order to protect the military budget. All of which leaves the American middle class on a badly listing, although not yet sinking, economic ship. Even before the financial crash, real wages for the typical American worker had been stagnant for 30 years as a result of: 1) trade and investment deregulation that shoved American workers into a brutally competitive global labor market for which they were unprepared; 2) the relentless war on unions that began with the election of Ronald Reagan in 1980; and 3) more recently, the erosion of the social safety net for low wage workers and the unemployed. Still, workers continued to spend, and thus maintain national economic growth. While hourly wages flattened, overall family income rose because more women went to work. And cheap and accessible credit fueled everyone’s purchasing power Today, with more women than men now employed, gains to family income from sending the wife to work are about exhausted. And given the huge overhang of non-payable debt on the part of both banks and consumers it will be a generation, if ever, before we see anther credit balloon strong enough to lift up the economy. So, now that these financial props have been knocked away, the trajectory of American incomes and living standards is a downward slope. The squeeze is not limited to workers in export or import-vulnerable industries. Wages and salaries are now falling across the board, in services and manufacturing sectors, among women and men, young and old. Health and pension benefits are being slashed and businesses are getting their work done with part-time and temporary workers, often supplied by labor contractors whose own survival depends on hiring labor at the cheapest rate possible. Majorities think that the next generation is going to be worse off, but they expect that they, personally, and their kids will be okay. So, while they might agree with the points made by the Wall Street Occupiers, it’s not worth the effort to join the protest. A PEW poll last fall reported that by a margin of 63-21 Americans believed that, “although there may be bad times every now and then, America will always continue to be prosperous and make economic progress.” The American writer James Baldwin wrote, “Not everything that is faced can be changed, but nothing can be changed until it is faced.” Until Americans face that they and their kids will not be okay, and that their own personal future depends on their ability to find leaders to willing to act on that reality, the implicit Washington grand bargain will remain in force. And we will continue on the road toward lower wages, falling living standards and blasted hopes.