Introduction Into Labor Market

The current realities of the world remain a significant requirement for any company or organization that deals with labour – related strategies. In recognition of this the International Labor Organization (ILO) has set operational objective to ensure that the members are better equipped to analyse trends in national and global employment and the labour markets. This move is to ensure that effective decent and appropriate work strategies may be designed and implemented. Since from time immemorial the international labour organization has disseminated labour statistics on the characteristics of the working population and its conditions of work and life throughout the world. (Baldwin & Francois, 1999, P. 86).n n In line with this, objectives have been designed to present a core set of labour market indicators to supervise and to improve the availability of the indicators to monitor new employment trends. The key issues in the labour market that are addressed by the international labour organization included female labour force participation and fertility and labour market trends for older workers in evolving economies. Among those listed above, educational attainment, wages and compensation costs, productivity and labour are considered. (Baldwin & Francois, 1999, p.88).

In today’s world there is an increasing importance on the aspect of labour market performance and national competitiveness. This aspect greatly depends on the skill of the workforce which stands the best available indicators of labour force skill levels. The quantity of labour that can be viewed from hourly compensation costs point ensures international competitiveness but it can be highly misleading if used alone. (Rugman, 2002, P.143).

In solving the shortage above, productivity and unit labour costs in combination with hourly compensation costs can be effective if used to assess the international competitiveness of a labour market. Economic growth in a country can be attributed to increased employment. On the other hand it attributes to more effective work by the employed population. This can be defined through data on labour productivity, therefore it is a key measure of economic performance. (Rugman, 2002, P. 145)

The labor market has significant influence on international business. Although there are factors outside the domain that impacts on international business, labour quantity and mobility is highly affected by political instabilities, which in turn affect the labour market. Allocative technical and scale efficiency impacts on labour quality which affects the labour market thus the international business as well. The market power which determines how resourceful or talented the labour force is, effects international business. (Baldwin & Francois, 1999, P. 102)

Labor quantity varies across different countries. This could be as a result of the population structure. If a population has a high rate of minorities, it may have a reducing effect on the working population. An indication that the labour market is narrowed and the international business is negatively impacted. The way in which the labour market changes is important in the direction of international business. The availability of skilled labor enables labor mobility but these impacts on the unskilled labour market. As individuals in the international business get promotions as a result of labour excellence, others who are still skilled occupy the vacants and the unskilled market gets little preference. This has the effect of creating unemployment. In conclusion a good understanding of international labour forces and international business is key to success of any business that is globally based. (Rugman, 2002, P.158).