Essay on Changing Business Scenario: A Case Study of Low Skilled Labour in Developed Countries

Running head: SOCIOLOGY
Essay on changing business scenario: A case study of low skilled labour in developed countries
Name of the student:
Name of the university:
Author note:

1
SOCIOLOGY
It is evident, from various information acquired that the low skilled labour supply has
declined at a faster rate, which has also resulted in creating a major shift in labour market
institutions. In the developed countries as well, the gaps in wages and rate of unemployment
between the skilled and lower skilled workers have resulted in such decline, especially, the
United Kingdom, United States, Australia, etc. This has often been considered as an
inequality in the labour market, which has been caused due to the skilled biased change in
technological aspects and also because of the decrease in trade barriers arising between the
developed and developing nations all over.
With the progress in technology and other related aspects such as communication
process, which has created a positive impact on the trade activities and relations, while at the
same time, reduced the demands for skilled workers in these nations. According to Nelson,
(2017), it is also true to the fact that the increase in inequality among the skilled as well as
low skilled workers, there has been gradual increase in the relative supply of skilled workers.
Though the individuals, i.e., the employees responded to the higher wages structure and
inequality related to the unemployment, they used to take part in the training and
developmental sessions, still the results have been unsatisfactory, which resulted in rapid
decline of demands for the low skilled workers.
As stated by Liu et al., (2017), the impacts created by the digital technologies on the
job roles often is dependent upon the tasks that are at hand and how it either compliments or
substitutes the workers assigned with the tasks. The technology is thus, considered as skills
biased, which further allows for being cognitive, thereby, susceptible to the automation
process and therefore, saving the labour as well. The decline in demands for low skilled
labour has been a major issue, which has created inequality in the labour market and at the
same time, widened the gaps between the wages of high skilled and lower skilled workers.
For example, there has been wage inequality in US and Britain whereas in France, there has

2
SOCIOLOGY
been lack of enough employment scopes and opportunities, which also reduced the demands
for low skilled workers. Considering the statements provided by Walter, (2017), the main
cause of decline in lower skilled labour demands has also been the introduction of new age
advanced technologies, which have reduced the actual demand for production labour and
thereby, created a substantial inequality between those workers who are capable of using
those technologies and also those who are not.
In France, there has been steady growth in the minimum wage, still a post school
training system has been introduced to manage allocation of significant share of the payroll
activities, furthermore, ensured approval made by the Union members and authorities to
develop a comprehensive plan for the purpose of reemploying the workers who have been
dismissed. With the prioritisation on technological advancements or progress, the production
level has been improved and thus many companies have focused on the highly skilled
workers rather than selecting the lower skilled workers, who might affect the business
functioning and thus the demands for these have also decreased to a large extent (Cuberes &
Teignier, 2016). Thus, mostly, the technological progress within the specific industries and
wage differentials have been the major causes of this major decline in the demands for lower
skilled labour in the developing countries, thereby, contributing to the lack of enough
employment scopes and opportunities too. In the developed countries, the volumes of trades
have also increased subsequently, which has been considered as another major factor that
contributes to the poor position and deteriorated condition for the workers who possess lower
level of skills and knowledge in various fields.
Furman, (2016) highlights that the management of trade activities and trade relations
has also affected the demands for lower skilled workers as it enabled the demands to become
more responsive to the changes in the costs associated with the management of lower skilled
labour and even enhanced the rate of unemployment. It has though, in some cases, increased