Reversal of global migration trends due to the crisis, on the chosen example.

The economic crisis which hit Europe, has left its mark in the labor market. In a particularly difficult situation were young people just entering the labor market, for which there is no place. This forced many of them to consider the decision to emigrate from their homeland. For many years remained constant trend in this area. Countries which were characterized by a high rate of emigration (in the European scale- usually countries of the “new union” – Central and Eastern Europe, in the world’s scale- former colonies- Spanish, Portuguese and French), whose citizens have decided to move to countries with a higher standard of living. There was also a group of countries that were typical destination for immigrants. Citizens of the “New Union” countries usually decided to move to Germany, the UK and France. The destination of the newcomers from the former colonies, was the home countries of these colonies- France, Portugal and Spain. Large influx of immigrants from Africa have been registered also in Italy and Greece.

The economic crisis with his affect on the U.S. and Europe caused a reduction in the living standards of many people in the Old Continent. By this we can see a change in the global migration trends. It turns out that people in countries such as Portugal and Spain-seen so far as a haven for immigrants, now consider the possibility of moving to another part of the world in search for jobs. However, the Spanish immigrant profile is significantly different from the immigrants from central and eastern Europe. Poles, Lithuanians or Hungarians who decide to emigrate are often well educated and who know the languages ​​of the countries to which they wish to move. Their decision to leave the country is a cause of “brain drain” in the homeland. Often the situation forces them to work below their qualifications in the country of destination.

Most of the young people in Spain decide to abandon schools very early, not earning an education that allows them to be skilled labor force abroad, the problem is also the lack of foreign language skills. Perhaps that is why it is easier for them to decide to move to a country that is former colony. Especially now, when the economic situation in Latin America and the development of the continent in recent years has caused a reduction in unemployment to an approximately 6% (as shown in the figure below data in %, year 2012).

slika alicja,101716,13266980,Latynosi_znalezli_patent_na_bezrobocie.html

Of course it is not so that every person who decide to leave Spain does not have education and does not know foreign languages. There is a group of highly educated people who emigrate because of the inability to find a job in their profession for decent wages. Here is another difference between an immigrant from Eastern Europe and Spanish. They do not decide to work below their qualifications, as it is in the case of Poles travelling to England for example. Interestingly, in recent years we have seen an increase of immigrants from Spain in Poland, which seem to be quite unattractive country for migrants from the west. However, it appears that the Spanish engineer that could count on a salary of 800 euros per month, which in Spain is a small amount in Poland with its lower cost of living, accept the offer and work in another country treats not only as a way to survive the crisis, but also interesting experience in his career.

Spaniards are the largest group among immigrants from Western Europe in Poland. Often they are trying for management positions in Spanish companies, or a job as a teacher of Spanish. Why they are choosing Poland? A large group of Spanish immigrants in Poland are former Erasmus, who knew the country while on international exchange, and more recently, people who had the opportunity to meet and like the country during the Euro 2012 Championships.

I believe that if the financial situation force someone to emigrate can not be considered to be the most optimistic and the best situation. However, a trend which can be observed in recent years, shown here on the example of Spanish immigrants, is in my opinion very interesting from the point of view of the international labor market. I think a few years ago, no one expected that Spain, a country receiving a large group of foreign workers in 2012 will record a negative migration balance.

                                                                                                                                                                                                           Alicja Falińska, Blaž Kralj

The Impact of Automation on Global Labour Market

Automation is the use of machines, control systems and information technologies to optimize productivity in the production of goods and delivery of services. Automation plays an increasingly important role in the world economy and has been responsible for the shift in the world economy from industrial jobs to service jobs in the 20th and 21st centuries.

It is obvious that automation has many benefits, such as increase in productivity, quality and consistency of output. One more advantage is reduced direct human costs and expenses. But increasing automation leads to an increase in unemployment because human labour is replaced by machinery.

There is a book regarding this topic from 1995 written by American economist Jeremy Rifkin: “The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era”. He predicted devastating impact of automation on blue-collar, retail, wholesale employees and the growth of third sector.


According to the International Federation of Robotics (IFR), global sales of robotics increased by 38.0% in 2011. China, Germany and the USA are the major drivers of this growth, though the biggest users of robotics are Japan and South Korea. The increased use of robotics in these markets has helped to contribute to a sharp rise in labour productivity in some of them. China saw its labour productivity more than double between 2007 and 2012.

Labour productivity in selected countries: 2007 – 2012


Source: Euromonitor International from International Labour Organisation (ILO)/Eurostat/national statistics

Automation can save money on wages paid to staff, and also on labour taxes paid to the government. This can increase profits and competitiveness and it can be used to fill labour shortages: China is rapidly increasing its use of automation to counteract the predicted decline in its labour force due to the effects of its one child policy. It can also improve countries’ competitiveness by boosting labour productivity. On the other hand, the growing use of robotics and automation can contribute to long term structural unemployment, which means unemployment that can often be long term as it is part of a fundamental shift in the skills needed by an economy. This can weaken consumer spending and consumer confidence levels.

The use of automation and robotics is forecast by the IFR to increase in all regions by 2015. Asia/ Australasia is set to see the biggest increase and this will primarily be driven by an increase in China.

Estimated Operational Stock of Multipurpose Industrial Robots by Region: 2010, 2012, 2015


Source: The International Federation of Robotics

The forecast increased use of automation could contribute to an increase in unemployment rates globally, as the working age population aged 15-64 is set to grow from 4.6 billion in 2012 to 5.0 billion by 2020. Many of the increased numbers of the economically active global population may be competing for a reduced number of available employment opportunities as a result of automation.

/By Andrea Blažević, Antea Božić, Kristina Piene and Agita Sarkane/

Sources: accessed on 26.04.2013 accessed on 26.04.2013 accessed on 26.04.2013

Re-relocation from Far East – Back to the origin

Rising wages, escalating transport charges and an appreciation of the currency. The production in China gets more and more expensive for western companies. As a consequence more and more companies retrieve their outsourced parts of the production back to the origin.

As an example we can capture the French presidential campaign in 2012. The candidates were touting with arguments like “sell more home-produced products” and “retrieve the production back in our country”. Furthermore there is the claim for warranty certificates, which attest the origin of production in France. However, companies have begun to relocate their production several times before politics took possession of this topic for their purposes. This means that globalisation partly begins to stuck.

One example for this issue is the French toy manufacturer “Meccano”. The owners Michael und Alain Ingberg followed the outsourcing-boom. They relocated their production to China in the previous ten years. The main factory at the French city Calais was already written off. But two years ago the Ingberg brothers have brought 20% of their production back to France. Meanwhile roughly 50% of the outsourced production is back in Calais. “China is changing”, was the comment of Michael Ingberg. Wages are rising, the currency is appreciating and the costs for transportation from China are rising and rising over time. Another point for the re-relocation is the gain in flexibility. The workers in China become scarce and as a consequence the delivery times increase.

Even other companies have decided to come back with their production. Another example from France is “Genevieve Lethu”, a producer for high quality kitchen accessories, table ware and pots. The reason was that China wasn’t able to fulfil the necessary quality claims of the company.

There are many other companies which are following this trend. “Kapsch”, the Austrian producer for radio technology brought the production from the Chinese city Foshan back to the 8,600km dislodged Austria. The radio stations which were produced by 500 Chinese workers are now produced by 50 domestic workers. Despite of the productivity-advantage, the production costs are +5% compared with China, but considering the raising minimum wages of annually 20% in China and the appreciation of the currency, the 5% more are acceptable, a fortiori regarding the additional flexibility. Kapsch can react notably faster on changes or adjustments from their customers what consequently improves the service quality of the company as a supplier. This argument runs like a golden thread through the explanation of the returnees.

Also in Germany we can find such companies. One example is the producer for high quality pans “Berndes” from Arnsberg. Their explanation is that the production of low quantities is more expensive. Further reasons are the same as already mentioned in the examples of Kapsch and Genevieve Lethu.

“Back to the roots” is also a project from Apple, which also produces in China. The Mac- Book production will be returned to the USA.  Tim Cook, the director of Apple said that they want to invest 100 Million US Dollar in this project. It could be a beginning of a revolution; the industrial jobs are coming back to their origin.

This trend isn’t new, but amplifying. The main reasons are the continuous crisis in the world and the reorientation of the companies. Costs aren’t any longer the key factor. Based on the financial crisis, plantare declining. For companies it becomes more and more important to use their own capacities, to have a higher level of utilization, what would lead to lower production costs.

Another important point is the short lifespan of products nowadays. The products cycles are always faster and the availability is a crucial factor for companies.

A little comparison shows, that for three relocations from Germany to Far East, one company comes back. Every seventh company from United Kingdom also returns from Far East after a period of two years. The British chief economist Lee Hopley says also: “The key factors in the global competition are quality, customer service and delivery times.” This led to a revaluation of the production in emergent countries like China, Vietnam or Korea.

It could be an interesting investigation, if countries from Far East like China etc. already observe this trend in their export statistics. But probably it needs more time to see in which direction this progress will turn. But it’s a first shift in the big world of the GLOBALISATION.

written by Matthias Lerch, Nicolas Lauer, Timo Bug


Linkedin in the Labour World

This project was created in December 2002 in the USA and in March 2003 was officially put into an operation for this network. From other social networks can be distinguished by its focusing on association business contacts and using mainly for professional networking. Within a few years, the U.S. has spread itself to a worldwide and the amount is growing each year.

Linkedin uses more than 50 million users in the U.S., where it is also the platform. In Europe Linkedin uses more than 20 million users. The rest is divided fairly even into the rest of the world’s major regions as Southeast Asia, Australia, South America and Canada.



What is Linkedin?

It is social network which is dedicated to work. The aim is to create a network of business and professional contacts that will serve both for basic professional communication, but also for the labor market-whether in terms of supply or demand. Everything is oriented more or less at work.

It is mainly a CV online and share it with your friends user.

For whom  Linkedin is designated?

There are two basic types of users. The first is the user who are primarily seeking employment, thus using contacts to get an interesting job offers that are not usually available through advertisements. Indeed, the 80% of job offers are not advertise in anywhere. This means that the only way to access it is precisely through networking. But jobs are just one of the benefits of networking.

The second type of users are companies, including Small and Medium Enterprises. For small and medium-sized enterprises benefit LinkedIn a bit different. Can we help you find the right staff to the newly created position, can it help us to find business partners for cooperation, or we need to ensure that important client or customer. You will also find suitable investors for our starting project.

How do I register on Linkedin?

1. You need to register (name, surname, e-mail and password).

2. You need to choose your country, Zip code, currently if you are employed, you´re seeking a new position or you´re a student. Then if you will choose that you are student, you have to chooce you university and its start and finish times.

3. Confirmation of your e-mail.

4. Linkedin finds people who use it. You can choose if you want to make contact with them. You can skip this step.

5. You can invite your friends. You can skip this step.

6. You can select the user that you know and connect with them on LinkedIn. You can skip this step.

7. Now you have created a professional profle. You can share it on Facebook and Twitter. You can skip this step.

8. You can make contact with people you know on LinkedIn. You can skip this step.

9. Now you can create your profile – CV – basic information, experience, education, photography, skills and expertise.

It is very easy and quick.

The basic account is free

  • You create a professional profile and building a network of ?
  • You can enter into groups
  • You can search for employers and apply for a job
  • It has limited info on who is looking at your LI profile
  • It has limited access to the profiles of other users

Premium account is chargeable, costs vary from about $ 25

  • The same as above, but not limited
  • It is available to send messages to people outside your network
  • You can set the filters, automatic alerts
  • There is storing profiles into folders
  • Adding notes and contacts to any profile

Linkedin has great socio-economic composition of the users in the future promising business model and especially useful in the process. Unlike Facebook offers options that actually enable us to develop a long-term increase in the number of users who are able to offer a very expensive and highly specialized services.

Although you expecting as much fun as Facebook, usefulness for you can be much higher. Time spent on LinkedIn is really pointless.


Authors: Helena Wenzelová, Veronika Müllerová, Matej Vician, Zsolt Farkas.

Working conditions in the global fashion industry

The $450 billion global fashion industry is one of the most important sectors of the global economy that creates jobs and clothes for people all over the world. It employs over 25 million workers in over 100 countries. The reality of this industry is that many individual producers in the developing countries work long hours under strenuous conditions for pennies on the dollar, far less than a living wage. However, there exist many unacceptable working conditions which will be illustrate in the following.

A major concern among garment workers are long working hours and forced overtime. Employees normally have to work between 10 to 12 hours, sometimes 16 to 18 hours a day. When a factory faces order deadlines, working hours get longer. Chinese workers were frequently working a seven-day week in peak seasons and sometimes they sit working non-stop for 13 to 14 hours a day. They sew until their arms feel sore and stiff. In Thailand garment employees sometimes have to work a day shift and a night shift. Overtime is usually obligatory and if workers cannot work the additional hours they face penalties, verbal abuse and dismissals.

 Another bad working condition is the handling with the workers health and safety. Eye strain, exhaustion and debilitating overuse injuries occur because of poor ergonomics (how well a job task fits a worker’s body), long hours and constant pressure to meet production workload. The illnesses are often undiagnosed and untreated. If employees take some time to get medical care or to recover from an injury or illness, they may experience cuts in wages or also be fired. In many factories, workers do not receive clean drinking water nor are they allowed to use the toilet when they need to. The reproductive health may be harmed by exposure to chemicals, heat, noise, overwork and exhaustion. In Bangladesh around 200 workers have died and many more have been injured in garment factories fires between June 2004 and June 2006. There were no emergency exits, people were trapped in the factories and most died in a mass panic. The same happened during a fire in a garment factory at the end of 2012 where 112 people were killed in Bangladesh.

In some garment factories, women who are applying for work, are asked if they are married, going out with a man and planning to have children. They reason for it is that some employers only hire unmarried women with no children and sometimes women must sign an agreement not to get pregnant as long as she works at the factory. Pregnant workers suffer verbal abuse, higher production rates, longer work hours and more difficult tasks such as standing instead sitting or working in a hotter area. Furthermore, women are prevented from taking maternity leave or pay if they return to work after the baby’s birth.

Supervisors, employers, the police, state security forces, strike breakers and others use frequently violence against workers. Especially women experience verbal and physical abuse and sexual harassment in the workplace. Besides, they fear assault and rape on the way home from the factory at late night.

Factories workers often do not receive regular employment contracts. So they have no means of compensation if their employers fail to respect labour laws like minimum wages, working hours, overtime payment, health benefits and other ones. Especially immigrants do not get contracts and so they are not accepted as normal in the industry. The worst-treated are the temporary workers, because they are hired with a temporary contract which is then renewed continuously to avoid legal responsibilities like health insurance. This is particularly common in Indonesia.

In many of the factories the management makes it clear that union organizing is not acceptable and workers who are joining will be fired.  This behavior is even supported by the government although trade unions are a constitutional right in many countries. In countries like China and Indonesia the government to it, because they want to prevent unions from raising labour costs.

All in all, the working conditions in the global fashion industry are really tough and the employees do not have the normal working rights set by the law. It is very important to support these people so that they can be member of trade unions and at least receive a living wage. For this reason, customers should consider if buying cheap clothes is worth that many factory employees work under strenuous conditions and facing poverty.

Written by Kristin Reinhard, Deirdre Schmidt, Florian Rützel, Marius Zentgraf


Australia – a mosaic of migrants

If you have ever been to any of the bigger Australian cities, you will know what it means. Over a hundred of language spoken, people of every race, colour and about 200 nationalities, all in one country. Australia is a magnet for immigrants.

More than half of them (51%) are skilled workers, but there are other substantial categories, like families re-joining their relations (24%), students or humanitarian entrants. They come from all over the world, but obviously over the last half-century countries providing most workers have changed. In the 1960s and 1970s a lot of migrants came from the Balkans, whilst since the 1980s it’s Asia that provides more. Currently, the top six countries are New Zealand, UK and Ireland, China, India, Philippines and Malaysia.

countries australia

(click to enlarge)

Every year Australia accepts a pre-defined number of immigrants to strengthen the economy with the most useful workers – young, healthy, English-speaking, educated, skilled and often quite wealthy. Its demographic future will heavily depend on workers coming from overseas. Although the annual growth has been on the uptake again since 2011, over the last few years its major components was NOM instead of the natural increase which is declining. NOM (Net Overseas Migration) which is the measure of permanent and temporary (long stay) arrivals, less permanent and temporary (long stay) departures, in a twelve month period, has been the major contributor, reaching its peak of 66% in 2008-2009 and now providing 58%. This tendency, combined with an ageing society, will force Australia to open even more for workers from abroad in order to keep the working force growing or at least stable.

But the work force is not only flowing in the country; more and more Australians decide to leave their country to work abroad, therefore causing an outflow of skilled workers in their prime years. Over the last 15 years the number of emigrants has more than doubled, making Australia one of the countries with biggest overseas diaspora (comparing its size with the overall population). Main reasons for this phenomenon are wages and a greater chance for success. Within the country there are so many workers  who are highly skilled or specialised that even those most qualifies earn much less in comparison with the USA or Canada. And that is why specialists like managers, businessmen, scientists, lawyers and informatics leave to UK, USA, Greece, New Zealand or Hongkong. Such an outflow is likely to cause severe problems in the service sector in the future.

By Katarzyna Liszka, Martyna Dzido, Aleksandra Pułyk, Patrycja Perzyńska

Source of statistics:–documents/statistics-tables.pdf

The global gap between rich and poor

80 percentof the entireworld’s wealthisheld byonlya quarter of theglobalpopulation, according to a study from the UNDP.Thus the gap between rich and poorisgrowing wider. The unequaldistribution ofincomeand wealthin developing countriesisthehigher than in developed countries, but as well in the rich industrializedcountries themiddle classis shrinking.The gapbetween richand poorin the developingcountries is directlyvisible. Theremanypeople live in absolutepoverty that is lessthan$ 1.25perday per person. It is about survival. In developedcountries thepovertyhasa different face, but most areas well affectedby this development.

In thepastdecade, the income gap isnotonly inveryunequalcountries such asIsrael orthe United Statescontinued to open, butas wellin countrieswith traditionallysmall differences. These include for exampleGermany, Denmark, SwedenandotherNordiccountries. The top tenthof the German population earnseight timesas much as thebottom.One reason for this is that the lower income in the last years just slightly increased. Many people in both poor and rich countries can´t live of their incomes. The cost of living continues to rise, while there is astagnation of wages and salaries. At the same time the social sector was seriously affected by the financial and economic crisis. In this sector many savings was made.

More money for education or sociallydisadvantaged could help to reduce the poverty. For example,the income gapis offsetby aprogressive incometax schedule.Who earns morewill paymoretaxes.There are already good concepts in a few countries like the “Bolsa Família” in Brasil, which helps direct disadvantaged people.

Such social programs are just exceptions. The best solution is education. Manychildren in developingcountriesneed to leave theprimary early, because they need to help the families in the agriculture. So there is just a little chance to go to a High school or even the University. Even in developed countries is the access to education often not fair. Children from the upper classes in Germany have a three times higher chance to goto High school (Gymnasium) than children from working class families or from families with a migration background. At German universities are only about six percent of students from a non-academic or socially disadvantaged home.

Just thebasic servicesand education can counteract the increasingincomeinequalityin the world.As long as thesharing ofhealth and educationsystemsisnotsimpleand fair, the gapbetweenrich and poorare increasing, warnstheOECD.,,15688312,00.html