Why Labor Mobility?
Labor Mobility Can Assist Employing Sectors with Addressing Growing Labor Scarcity
Zuzana Cepla | August 20, 2020
High-income countries’ employing sectors face unprecedented scarcity of native-born workers, especially with low and medium skills. As the nations’ populations get older as a consequence of declining fertility rates, their overall workforce shrinks, preventing employers across industries to find enough workers to fill the gaps. Although many call this trend “labor shortage,” this note refers to it as “labor scarcity” since the employing sectors in high-income countries are unable to address the issue simply by increasing wages as discussed below. While the COVID-19 pandemic has caused some temporary swings with closures of businesses and thousands of furloughed workers worldwide, this underlining long-term trend is unlikely to change. Without sufficient number of mobile workers with necessary skills, employing sectors will continue to struggle to produce and deliver often vital goods and services, or even stay open for business. This labor scarcity has been negatively affecting communities and weigh on the high-income countries’ economies. Labor mobility can serve as an effective policy tool to help employing sectors in those countries to at least partially close their deepening labor gaps.
Rebekah Smith | July 28, 2020
COVID-19 has not changed long-term demographic trends, and there is good reason to want a more globally mobile workforce even in the immediate future following COVID-19. However, factors constraining labor mobility are heightened in the COVID-19 era. In the near term, this creates two possible worlds: one in which the constraints win out, and one in which we build off innovations implemented during COVID-19 to move towards a well-managed mobile workforce, setting us up well for the much larger demographic need in coming decades. We propose that the second world can be achieved through a broad coalition to validate the risky innovations undertaken during COVID-19 and to document the positive impacts of the actions they undertook. We further propose that a good ‘mobility industry’ is core to resuming labor mobility, and will require collective action from a broad coalition to establish and develop a quality industry.
Zuzana Cepla | July 2, 2020
The world is about to face unprecedented challenges. With increasing life expectancy and declining fertility rates in many high-income countries, older populations will grow while labor forces will shrink. The resulting demographic transition, the inversion of the demographic pyramid with more old than young, will be gradual but increasingly dramatic. Inevitably, these changes will adversely impact lives of families and individuals in those nations, as their governments will not be able to fund social security and health care programs that are heavily dependent on contributions from the working populations. Labor mobility can serve as an effective policy tool to at least partially address the looming demographic crisis in the high-income countries.