Almost 2 billion people wordwide are working without contract of employment

The presented study done by the OECD mentioned that more and more people are victims of the economic crisis. It has shown that the quantity of employees without contract of employment and social insurance has reached a high level: More than every second employee worldwide is concerned by this problem. This is an amount of around 1.8 billion people. The study shows clearly that more than 700 million of them earn 1.25 Dollar (approximately less than one Euro) a day. Furthermore, the OECD has proposed to get fast and unconventional help by the richer countries. According to an article of http://www.Handelsblatt.com suspects the OECD that the number of people without employee contract will expand in future. It is anticipated in the survey that the rate of those will increase of two-thirds until 2020. Especially the developing countries are hit by this problem.
The exploitation of human beings must be stopped. One possibility could be to advance education programs and personal loans. Another possible way would be, to chance the legal employment policies in order to create an employment- environment where it is no longer possible to work without a contract of employment or social insurance. Additionally minimum wages, put into power by the governments, could increase the average wage level.
Finally it can be stated, that not only a single action will change the situation, only a number of different actions will be change in future the working conditions.

*OECD = Organisation for Economic Co-operation and Development

Source: http://www.handelsblatt.com/politik/international/1-8-milliarden-menschen-arbeiten-ohne-vertrag/3152240.html

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7 thoughts on “Almost 2 billion people wordwide are working without contract of employment

  1. I find it frightening to read that such a high number of employees are working without contracts of employment. This of course is a factor in explaining why so many people also work for such little amounts. Exploiting other human beings like this should not be allowed at all, I don’t think anyone can argue with this factor. I agree that a number of different actions must be taken to tackle this situation and the sooner the better. We must all work together in order to provide better working conditions for everyone.

    Reply
  2. That’s right: not a single activity can improve the situation in the informal economy, but rather a set of measures. Usually is used one method: increasing the penalty and its effectiveness for reducing the underground economy. However, it is important that entrepreneurs (both in terms of staff employment and business in general) their activities rather than fully stop, so not providing any benefits, but shift to the legal economy: the informal GDP into a formal GDP.

    It is known that entrepreneurs carry out such illegal activities as there is a huge tax and social security burden. Therefore as one of the options would have to balance (cut) the burden, so that operators are willing to pay, but the revenue from the business is not reduced.

    Reply
  3. It is horrible to read that there are so many people, who are working for less than $1,25 a day. We need to find clear solutions. I agree totally with the listed solutions. I’m afraid about one thing: is there enough animo to make solutions together? Important is to note that it is a big task to make different solutions. It’s impossible to do this, when we don’t work together on solutions.

    Reply
  4. In my opinion, not all jobs should be required to have an employment contract. In example: short part-time work or seasonal work. With this said, working full-time and on salary should require this contract.
    With this employment contract, it protects employees of their rights and with job security. This not only protects the employees but the employers as well. When an employee quits it protects the employers from the illegal release of private employer information. A written contract is always better than an oral contract.

    Reply
  5. This slavery is all about profit. in developing countries they are not concerned with their workers. They pay them extremely low wage, provide bad working conditions and expect a high standard of work. It may be hard in developing countries to draw up such contract but its unfair that they have yo endure such slavery. The contract could at least protect the workers. Having insurance could mean that the have a small means of protection while working in a dangerous working environment.
    Working full time anywhere should include a employment contract, it should be set out with guidelines and their entitlement. Its hard for employees to get what they are entitled without an employment contract.

    Reply
  6. For me, this not that surprising that 1.8 billion people are concerned by this issue. Indeed, the crisis has played a major role in the increase of illegal works. As you said, I really think that it’s dangerous to work without any social insurance and for less than 1 € per day.
    This phenomenon is more and more common in Developed countries because since the crisis, it seems like populations are more in a “survival instinct” mood. I believe that people are capable of everything in order to earn money.

    I’m more or less agree with the “exploitation of human being” part because on the one hand these people are ok to work in those conditions and on the other hand, they shouldn’t have recourse to these kind of jobs to earn their life.

    The main stage to solve this problem should be for me, denunciation. If everybody denunciates these works, maybe authorities will be able to control this trafic. As always, it’s an economic problem that Government should work on as soon as possible.

    Reply
  7. I completely agree with the author that the not a single action will change the situation, and that only a number of different actions will be change in future the working conditions. This is a essential component that it seems that many governments across the globe are missing. This is a global financial crisis. Therefore, it is necessary for the world work together to identify what created this problem, and work together towards a solution. If only we could assure ourselves that corruption would not skew the policy making process on a global scale, this would be both the best and easiest solution to the problem we are all facing.

    Reply

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