International Labor Market in the Banking and Finance Industry

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INTERNATIONAL BUSINESS
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INTERNATIONAL BUSINESS
The global labor market is very dynamic, and it is critical to keep up with the new
trends in the global market. The labor market has drastically changed notably over the
past decade. One of the significant factors which have contributed to the change in the
global industry is technology. Globalization and free movement of people have also
had a great impact on the international labor market. This assessment aims at
examining the labor market to get information and data on the global banking and
finance industry. The analysis helps in identifying challenges faced and hence aids in
identifying the possible solutions to the challenges. The second section of the
assignment researches Common Wealth Bank of Australia to identify the factors
which impact on the company and the banking sector in general for the past five years
and the future outlook of the company for the next five years. The final section of the
assignment contains an investigative interview with the manager of the bank which
gathers information about the labor market, the changes, and expected future trends.
TASK 1
The Australian labor market has undergone significant changes both in terms of
structure and technical changes. The changes have been more rapid especially for the
past two decades. The changes have been due to changes in government policies
relating to the labor force as well as changes like work. The demands of employers
have also changed significantly over the past five years. According to data from the
Australian Government department of jobs and small business, the Financial and
Insurance Services industry employs approximately 446,000 people (Verick, 2018).
This accounts for about 3.5% of the total workforce in Australia. For the past five
years, employment in the finance and Insurance Services Industry has increased by
8,9%. This is a significant increase compared to other industries which mostly

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recorded an increase of less than five percent. The data also indicates that the sector
has more female employees at 50.3% of the total workforce while male employees
account for 49.7% of the workforce (Petras and Veltmeyer, 2019). The average full-
time hours for employees in this sector per week is 39 hours. Statistics also indicate
that there are approximately 50,000 graduates who have specialized their careers on
finance and insurance and they are yet to get a job (Moutsatsos, 2018).
There are several challenges that the labor market in the finance and insurance
industry faces. One of the major challenges faced by this sector is the advancement in
technology. Technology advancement in the banking sector has been so rapid over the
last five years. Use of mobile banking, as well as online banking, has made it easier
for customers without having to visit a banking hall. The rise of robot advisors has
also rendered many people jobless.
There are also changes in economic structure and which could impact the labor
market in Australia. Over the past five years, financial markets have been relatively
stable. But in many cases changes in exchange rates could significantly impact labor
markets for financial and insurance sector (Bohn, Brakman and Dietzenbacher,
2019). This mainly applies to non-permanent employees who work in this sector. The
changes in micro and macroeconomic factors affect the labor market in the financial
services sector. Low interest rates result in banks and other financial institutions
trying to cut their workforce to reduce expenses. This may result in some people
losing their jobs.
Globalization is another huge challenge facing the labor market. Globalization
has resulted in the free movement of goods and services across borders and
continents. Globalization has resulted in increased competition for employment
opportunities globally. It has resulted in easing in the movement of people, and hence