- The World of Work report highlights the significant steps taken by developing economies that has led to a significant increase in their per capita income at an average of 3.3% in 140 countries over the past decade.
- In contrast, the average per capita income rose by a mere 1.8% in developed economies, driven by absence of quality jobs. This is however, not a uniform observation.
- Vulnerable unemployment is a looming threat as more than half the workforce in the developing work are either underpaid or self-employed and therefore lack a guaranteed income, social security and investments in health and education. This affects the future of the coming generations.
- In Senegal, Peru and Vietnam, a surge in the proportion of wage and salaried workers over the last 20 yrs has significantly dropped poverty and increased productivity.
- This has enabled the country to grow 1% point faster than other emerging economies.
- Thus, a good number of wage-earners in a society helps decrease unemployment and reduce inequality.
- Similarly, increase in economic inequality adversely affects economic growth and the peace and stability of the nation.
- In India, a significant increase in the regular wage employments in both rural and urban India over the past 2 yrs has been registered.
- There are also indications of faster growth in employment in the service and manufacturing segments.
- Enforcing statutory minimum wages across different economic sectors is critical to the strengthening of workforce and increasing overall productivity.
- Read at: http://www.thehindu.com/todays-paper/tp-opinion/end-labour-informality/article6087338.ece
Exams Perspective:
- Minimum Wages
- Informal Labour
- ILO