Over the past thirty years the world economy has added hundreds of millions of new workers. Different backgrounds and skills have reached a number of workers “human capital”, value added and income. The continuing rapidly rising income levels, increasing the chances of growing global economy. However, the emergence of new workers in the labor market and increased competition and significant changes in relative wages and prices, which had a strong impact on the distribution.
In developed countries – basically most of them – the average rate of income growth was very low. In some European countries, where income inequality is controlled in such poor income growth has been a special part of a strategy to recruit more people and to remain competitive in an open economy in the distribution of wage cuts in revenue. U.S. income inequality has grown in the field because of higher income and better educated people in this country has benefited from globalization, while others had fewer employment opportunities for commercial sector.
Prior to 2008 crisis. Twenty years have managed to maintain a stable level of employment (and not to reduce) non-trade jobs in the economy. Sometimes for this purpose had a substantial increase in public spending, in other cases, such as the U.S., excessive, based on consumer borrowing in the labor market led to a model of the reorientation of the services and construction. Between 1990 and 2008. almost 40% of total employment growth in the U.S. was the state and health care sectors.
In 2008. financial crisis, this model has failed. The private sector has decreased the volume of debt, and the public sector – reached and exceeded the sustainable limits. One extreme example is Greece.
However, the pre-crisis growth model lead to expectations, the pace does not change. As more and more felt that what was before the crisis is normal, at least in terms of growth in the real economy, currently seeks to revive growth by pre-crisis model. Unfortunately, this approach does not explain why the growth, especially in developed countries is decreasing, and the majority of employment-friendly machines.
And as we can see there is no ending of financial crisis in Global labour market.