Trade ‘key to well-paid em­ploy­ment’

The Daily Telegraph - Business - - Front Page - By Tim Wal­lace

MIL­LIONS of ex­tra well­paid jobs could be cre­ated if the re­cent slow­down in global trade is re­versed, the In­ter­na­tional Labour Or­gan­i­sa­tion has said.

Ex­port­ing busi­nesses are typ­i­cally more pro­duc­tive, fast-grow­ing and in­no­va­tive than their do­mes­tic ri­vals, the ILO’s an­a­lysts be­lieve, open­ing the way to cre­ate bet­ter jobs.

“Ex­port­ing and im­port­ing firms are more pro­duc­tive than firms that do not en­gage in trade, and they pay higher wages,” the re­port found. Trade boosts pro­duc­tiv­ity by forc­ing firms to com­pete with more ri­vals, but also by pro­vid­ing a big­ger mar­ket of cus­tomers. “For eco­nomic, so­cial and po­lit­i­cal rea­sons, global trade has en­tered a pe­riod of stag­na­tion, with im­por­tant im­pli­ca­tions for em­ploy­ment growth,” the ILO said.

It added: “In 2016, an es­ti­mated 37pc of work­ers (equiv­a­lent to 167m work­ers) were em­ployed by ex­port­ing firms in the 132 coun­tries an­a­lysed, which is less than be­fore the eco­nomic and fi­nan­cial cri­sis.”

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