Pearson Edexcel · A-Level · Economics B

    Course version: 9EB0 · Version from Sept 2015

    Employment patterns: a) Growth of the global labour force

    Full specification wording

    Employment patterns: a) Growth of the global labour force

    The global labour force has expanded significantly due to population growth, increased female participation, and the integration of large economies like China and India into the global market.

    Checked against the Pearson Edexcel 9EB0 specification (opens in a new tab) on .

    • Point 1 of 3

    Study notes

    From the checked teaching notes for this specification point.

    The idea

    The global labour force has expanded significantly due to population growth, increased female participation, and the integration of large economies like China and India into the global market. This growth increases the supply of labour, which can exert downward pressure on wages in certain sectors, particularly for low-skilled work, while simultaneously boosting global productive capacity and economic growth.

    For example: Multinational corporations often offshore manufacturing to countries with a growing, cost-effective labour force, altering domestic and international employment dynamics.

    What earns the marks

    • Identify factors contributing to the growth of the global labour force, such as population increases and rising female participation rates.
    • Explain how the integration of emerging economies expands the global labour supply.
    • Analyse the impact of an increased global labour force on wage levels and global productive capacity.
    • Evaluate how multinational corporations respond to a growing global labour force through offshoring and outsourcing.

    Common mistakes and how to put them right

    • Assuming a growing global labour force only causes unemployment.

      Put it right: Recognise that while it increases labour supply, it also drives economic growth and creates new markets and demand.

    • Confusing the global labour force with domestic employment rates.

      Put it right: Distinguish between the total number of people available to work globally and the specific employment figures within a single country.

    • Believing wage rates will fall universally.

      Put it right: Understand that wage impacts vary by sector and skill level, with high-skilled workers often seeing wage increases due to global demand.

    Exam tips

    • Use specific examples of countries, such as India or China, when discussing the integration of new workers into the global economy.
    • Link the growth of the global labour force to shifts in supply and demand curves in labour markets.
    • Consider both the positive impacts on global output and the potential negative impacts on domestic low-skilled wages.

    Try the lesson

    The start of the Employment patterns: a) Growth of the global labour force lesson, made from checked teaching notes for this specification point.

    Have a go first

    Which demographic trend is most likely to cause a direct increase in the size of the global labour force?

    Listen

    The global labour force has expanded significantly due to population growth, increased female participation, and the integration of large economies like China and India into the global market. This growth increases the supply of labour, which can exert downward pressure on wages in certain sectors, particularly for low-skilled work, while simultaneously boosting global productive capacity and economic growth. For example, multinational corporations often offshore manufacturing to countries with a growing, cost-effective labour force, altering domestic and international employment dynamics. A strong answer earns marks for these points. Identify factors contributing to the growth of the global labour force, such as population increases and rising female participation rates. Explain how the integration of emerging economies expands the global labour supply. Analyse the impact of an increased global labour force on wage levels and global productive capacity. Evaluate how multinational corporations respond to a growing global labour force through offshoring and outsourcing. A common slip: Assuming a growing global labour force only causes unemployment. Instead, Recognise that while it increases labour supply, it also drives economic growth and creates new markets and demand. Exam tip: Use specific examples of countries, such as India or China, when discussing the integration of new workers into the global economy.

    See it

    A top-down flowchart. Three nodes at the top — population growth, increased female participation, and integration of China and India into the global market — each point to a central node, growth of the global labour force. That node leads to increased supply of labour, which in turn leads to two outcomes: downward pressure on wages in certain sectors, particularly low-skilled work, and boosted global productive capacity and economic growth. The growth node also leads to multinational corporations offshoring manufacturing to countries with a growing, cost-effective labour force, which then leads to altered domestic and international employment dynamics.
    This shows the drivers of global labour force growth and its effects on wages, productive capacity and offshoring.

    Label the diagram

    Some boxes have lost their names. Pick the right name for each number.

    The diagram again, with 3 boxes numbered instead of named. A top-down flowchart. Three nodes at the top — population growth, increased female participation, and integration of China and India into the global market — each point to a central node, growth of the global labour force. That node leads to increased supply of labour, which in turn leads to two outcomes: downward pressure on wages in certain sectors, particularly low-skilled work, and boosted global productive capacity and economic growth. The growth node also leads to multinational corporations offshoring manufacturing to countries with a growing, cost-effective labour force, which then leads to altered domestic and international employment dynamics.
    • 1Box 1

    • 2Box 2

    • 3Box 3

    0 of 3 labelled

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