How Globalization is Impacting on Job Market, Salaries & the Cost of Living

How Globalization is Impacting on Job Market, Salaries & the Cost of LivingGlobalization is a term used for the way our modern world has become interconnected. We may still have hard borders, but some things do not stop at them.

Things like technology, law and economics stretch beyond the individual nation to become something we share.

It is debated that Donald Trump’s office, Brexit and similar smaller movements have backtracked on this interconnectedness as some borders become closed off and nations regress from global unity.

Yet, globalization continues to develop despite these events and continually impacts areas of daily life. Some of these areas, which will be the focus of this post, are the job market, salaries and the cost of living.

So, how does globalization affect these areas?

How Globalization Effects the Job Market

Globalization has opened doors for companies to switch locations and make use of local materials or produce.

Where it would have been expensive to source these goods in their home country, moving their business processes overseas or making use of trade deals becomes a better option.

However, this has a knock-on effect on the job market. Some people may lose their jobs due to the relocating company, while simultaneously, other professionals and workers will gain employment from the relocation.

The most prominent outcome here is job insecurity.

On the other hand, globalization has also enabled businesses to partner and innovation to flourish, creating new and exciting jobs like the ones currently on offer at InTouch Games Limited.

How Globalisation Effects Salaries

As a consequence of the situation just outlined, there is also an effect on salaries. Some companies will head overseas with the primary purpose of improving the product and the cost of making it.

However, other companies relocate to take advantage of lower wages. Lots of businesses move to areas that do not have a high-earning population and take advantage of their low wage demands through remote workers.

On a more positive note, salaries can have a positive effect through globalization. If businesses work together and create better services, they ultimately create new jobs, which sometimes can pay higher.

How Globalisation Effects the Cost of Living

Due to globalization, businesses are able to access a wider global market. A small shop in the south of France may continually sell products to China or South Africa.

This opens up the economy and makes the costs of products and services irrelevant to the borders they are sold in but actually the process of their production.

Naturally, this means the cost of living can be dependent upon other countries rather than the one the product is developed in. Longer processes and transportation costs often result in a higher cost of living – but not always.

On a separate note, freelancing and remote work has surged in the last decade with more people working from home or in other time zones to their employer or clients.

This has meant that the cost of living for these people is their choice. They can head to Bali and enjoy cheap accommodation and groceries, or they may choose to live in areas where the cost of living is higher.

In a Nutshell

Globalization and the world economy are certainly interconnected in many ways.

Sometimes the interconnectedness can be good for jobs, salaries and the cost of living, but on many occasions,  it can also spell trouble.