Labor Problems in the Developing Country

Poor Practices in Developing Countries

• Poor practices in developing countries often are a reflection of

development status. Practices in developing countries, by definition;
are often characterized by low productivity, relatively low education
levels, low wages, and volatile economic conditions.

-Robertson et al. (2009)

• Main Labor Problems in the Third World Countries

• Challenge to find a decent job

• Low income

• Employment Discrimination

• Uncertain Income

• Different Composition of Employment

• Challenge to find a permanent work

Workers in poor countries want jobs that are steady and secure, pay
well, offer benefits, meet labor standards, and offer social protections-
ones that might be called “good jobs”.

According to International Labor Organization (ILO) The problem is

there are not enough good jobs that they are capable of doing the
job.

The scope of the problem is particularly demonstrated in the statistic

that 61% of workers in developing countries- currently holding an
informal job, meaning one not governed by the rules that dictate the
rights of employees and employers.
 31

 Country with Highest Informal Employment

• Uganda in Africa- 94%

• Guatemala- 74%

• Peru- 69%

• Mexico- 54%

Source: https://smallbusiness.chron.com/temporary-vs-
permanent-employees-21559.html

Earning levels are very low

In most developing countries, wages are no more than one or two U.S
dollars per day.

People in the developing countries world are working- more often than
not, working very long hours. In countries such as Peru and Pakistan,
45% or more of workers work more than forty-eight hours in a week.

• A week in a life of sweatshops

The average sweatshop worker works about 72 hours a week, 16 hours

a day for 6 days a week. On top of the 16 hours a day, they are usually
forced to work 2-5 hours overtime. Refusal to work overtime results in
the decrease of salary. The workers are given quota to fulfill their work.

• Low income with long working hours

• Bangladesh – 0.13 dollars per hour

• China – 0.44 dollars per hour

• Haiti – 0.49 dollars per hour

• Indonesia – 0.34 dollars per hour

 32

• Vietnam – 0.26 dollars per hour

Source:
https://www.theworldcounts.com/counters/modern_day_slavery_fact
s/sweatshops_conditions

• Employment Discrimination

Employment Discrimination happens when an employee or job

applicant is treated unfavorably because of his or her race, skin color,
national origin, gnder, disability, religion, or age.

Most country with discrimination rate is the India having 40%, next is
Jordan and Nigeria.

• Anti-Discrimination in the workplace

Executive Order 11246 enforced by the Office of Federal Contract

Compliance Programs

Title VII of the Civil Rights act of 1964 Unlawful to Discriminate in hiring,
dischangre, promotion, referral and etc.

Types of Discrimination

• Age

• Gender

• Ethnicity

• Skin color

• Religion

• Disability
 33

Source:
https://www.google.com/search?q=Employment+Discrimination&oq=
employment+discr&aqs=chrome.0.69i59l3j69i60j69i57.7613j0j4&client=
ms-android-htc&sourceid=chrome-mobile&ie=UTF-8

• Uncertain Income

Informal employment is predominant in developing countries.

According to the ILO, the informal economy comprises half to the
three-quarters of all non-agricultural employment in developing
countries.

• Private sector vs. Public Sector

Most of the working in developing countries work in the private sector

and are not registered in the government and therefore do not
receive job-related protections

According to National Commission for Enterprises in the Unorganised

Sector, 86% of the workers engage in informal employment sector and
7% in formal sector

Characteristics of Uncertain Employment

• Lack of protection in the event of non-payment of wages.

• Compulsory overtime

• Lay-offs without compensation

• Unsafe working conditions

• Absence of pensions and health insurance.

 34

Source: https://www.odi.org/blogs/9154-uncertain-global-economy-
poor-countries-must-innovate-2015

• Different Composition of employment

Developing countries have the larger percentage of people working

in agriculture and a smaller percentage working in offices.
Agriculture’s shares of total employment is 66% in Sub-Saharan Africa,
49% in South Asia, and 44% in Southeast Asia. IN the developed
countries only 4% are the only share of agricultural employment

• Vulnerable employment

Self-employment and unpaid family work are more dominant than

paid employment in developing countries. The ILO called this as
vulnerable employment

• Vulnerable Employment Rate

• Vulnerable employment accounts for half of the world’s employment,

with the rates ranging from 77% in South Asia and Sub-Saharan Africa,
32% in Latin America and the Middle East to 10%.

Source: https://digital.commons.ilr.edu