Trade ‘key to well-paid employment’
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.”