Impact of Globalisation on Employment in Northern Ireland

Impact of Globalisation on Employment in Northern Ireland

1. Dis-advantages of Globalisation

   • Some services have been outsourced to cheaper countries where labour is cheaper
     • These jobs are no longer done by local workers
   • There has been a decline in manufacturing-e.g Desmonds clothing factory- as local businesses have relocated to lower cost economies
     • Many of these people have had to retrain.
     • This has resulted in loss of jobs in NI economy
   • Brain drain -many of our highly skilled and educated workforce leave NI to seek better employment opportunities and lifestyles abroad
     • This can result in skill shortages in industries that are very important to our economy and where it is difficult to find workers
     • It is expensive and inefficient to educate and train people to leave

2. Advantages of globalisation

   • NI has seen a growth in services provided by foreign companies who have invested here
     • Examples- starbucks, victoria square and nandos
     • This has created local jobs
   • Foreign multinationals have set up here and created jobs e.g-HSBC banking
   • Shortage of skilled labour in critical areas has resulted in inward migration of labour especially Europe these services can now be provided
   • To remain competitve many businesses are employing temporary staff because they are entitled to fewer benefits
     • This is less costly for firms
     • Staff can be let go when not needed

3. Some businesses now employ home workers and tele workers who are able to work from home because of improvements in technology

   • Overheads for businesses are reduced because they do not have to pay high rents, lighting, heating etc

4. Some NI companies have grown and survived because of being able to supply products abroad e.g wright group Ballymena

   • This means continued employment of local people-wright group won contract to supply 200 buses to HongKong