Services A SESSION - UNCTADunctad.org/meetings/en/Presentation/c1mem4_2016_p104_S1_M Corley-Coulibaly_en.pdfAfrica World Share of services employment in total employment (%) 1991 2014

The Role of Services in Trade: A Labour Market Perspective

SESSION # 1

Marva Corley‐Coulibaly Chief Globalization, Competitiveness and Standards

ILO Research Department

THE ROLE OF SERVICES IN TRADE: A LABOUR MARKET PERSPECTIVE

Marva Corley-Coulibaly, Chief Globalization, Competitiveness and Standards, ILO Research Department

Service sector is important for Decent Work• Importance to growth and employment globally (slide 3 - 4)

• Value added in services increased across all regions: 70.5% Globally• Globally 55% of employment is in services; 35% in Africa

• Trade and services • Growing share of service jobs linked to exports: both in service exports and in services

linked to manfucturing exports (5-8)• Increased service sector trade does not automatically lead to sustainable development (9-

10)

• Achieving decent work and link to 2030 Social Development Agenda(11-13)

Services sector accounts for more than half of global employment...

42.1 55.3

39.6 26.2

18.3 18.5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Sha

rein

glo

bal e

mpl

oym

ent(

%)

Services Agriculture Industry

Sectoral composition of global employment, 1991-2014 (%)

Source: ILO, Trends Econometric Models, October 2015.

60.9 51.3

59.2

37.3 28.9

42.1

69.3 65.7 64.9

53.9

34.7

55.3

20

30

40

50

60

70

80

Americas Europe andCentral Asia

Arab States Asia and thePacific

Africa World

Sha

re o

f ser

vice

s em

ploy

men

t in

tota

l em

ploy

men

t (%

)

1991 2014

In all regions, the share of services in total employment has increased.

Share of services employment in total employment in 1991 and 2014 (%)


The number of GSC-related services jobs has been rising, especially in advanced economies

Source: ILO Research department based on WIOD.

Number and share of GSC-related services jobs, 1995-2013

10.0

12.0

14.0

16.0

18.0

20.0

22.0

24.0

0

20

40

60

80

100

120

140

160

180

200

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Share in total services employm

ent (percentages)

Num

ber o

f job

s (m

ilion

s)

Advanced economies: number of GSC-related services jobs (millions) Emerging economies: number of GSC-related services jobs (millions)Emerging economies: share in total services employment (percentages) Advanced economies: share in total services employment (percentages)

Many jobs especially in business and transport services are part of GSCs

Source: ILO Research department based on WIOD.

Share of GSC-related employment in total employment, 2011, by services sector (%)

0

5

10

15

20

25

30

35

40

Transport andcommunication

Businessservices

Financialintermediation

Wholesale andretail trade

Hotels andrestaurants

Other services

World (40 countries) Advanced economies Emerging economies

In addition, more service jobs are also being created by ‘servicification’ of manufacturing

1.9

1.5

1.2

1.0

1.2

1.4

1.6

1.8

2.0

2.2

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Inde

x (1

995=

1)

Servicification jobs GSC jobs Total employment

Changes in the number of servicification jobs, GSC jobs, and total employment (Index:

1995=1)

Source: ILO Research department based on WIOD; Kizu, Kuhn and Viegelahn (forthcoming)

• GSC jobs created through servicification are growing faster than overall GSC jobs or total employment

• Servicification are service jobs that support manfacturing exports in terms of production or sales.

• There is a multiplier effect: jobs not onlybeing created in service sectors directlysupporting manufacturing but indirectly in services that support direct services.

Service jobs linked to manufacturing goods exports to emerging economies isexpanding …

45.4

38.8

30.5

22.5

0

5

10

15

20

25

30

35

40

45

50

Sha

re a

s pe

rcen

tage

of t

otal

ser

vici

ficat

ion

jobs

(%

) Emerging-Advanced

Advanced-Advanced

Emerging-Emerging

Advanced-Emerging

11.1

3.7 7.0

Share in total servicification jobs (%)


In the 40 countries:

• 60% of servicification jobs are linked to manufacturing demandfrom advanced economies, down from 75% in 1995.

• 18% of servicification jobs are linked to manufacturing demandin emerging economies, up from3.7%

Increased trade in services does not automatically lead to sustainable development

• Increased trade (including services) does not automatically lead to lower working poverty

• Economic benefits of participation in global supply chain does not automatically spillover to social benefits: In general, positive relationship between trade and employment creation Improved productivity, but not necessarily wages Higher wage inequality Increased informality Sectoral specificities with respect to job quality

Decent work essential to making trade a driver of sustainable development

Some countries with high inequality have seen fast growth of GSC-services jobs

Source: ILO Research department based on WIOD and Global Wage Database.

Relationship between GSC services job growth and earnings dispersion, 1996-2011

AUS AUTBEL

BRA

CANCZE

DEUDNK

ESPEST

FIN

FRA

GBR

GRC

HUN

ITAJPN

KORLTU LUX

LVA

MEX

MLTNLDPOLPRT SVK

SWE

TUR

USA

0

2

4

6

8

10

12

0 1 2 3 4 5 6 7 8 9 10 11

Aver

age

earn

ings

dis

pers

ion

(Dec

ile 9

/ D

ecile

1)

Annual growth rates of GSC services jobs (%)

Achieving Decent Work in GSCs

1. Macro and sectoral policies • Macro policies that promote job creation and support demand base;

• Sector specific policies to enhance productivity and transition to formal employment; support for businesses to enable better integration into GSC & movement up the chain

2. Support for businesses/workers• Skills training

• Active labour market policies for vulnerable groups, women and youth

Achieving Decent Work in GSCs

3. Promoting workers rights in GSCs

• Strengthen labour market institutions: Increased bargaining power and strong worker’s voice. Implement minimum wages across workers and sectors; Improve capacity to effectively implement laws

• Social protection Access to health care and basic incomeLabour protection: promotion of just working terms and conditions

Decent work and 2030 Agenda for Sustainable Development

• Social dialogue to foster sustainable outcomes

• Voluntary initiatives• Codes of Conduct• CSR

• Binding agreements:• ILO Better Work Programme • Bangladesh Accord on Fire and Building Safety• Trade and investment arrangements

Thank you!

ILO World Employment and Social Outlook: www.ilo.org/research

In most regions, the growth of services employment has been strongerthan that of total employment.

Trend growth of services employment by region (%)


0.0

1.0

2.0

3.0

4.0

5.0

2009 2010 2011 2012 2013 2014

Ann

ual g

row

th ra

tes

of

empl

oym

ent (

%)

Africa

Services Total

Linear (Services) Linear (Total)

-2.0

-1.0

0.0

1.0

2.0

3.0

2009 2010 2011 2012 2013 2014

Ann

ual g

row

th ra

tes

of

empl

oym

ent (

%)

Americas

Services Total


0.01.02.03.04.05.06.0

2009 2010 2011 2012 2013 2014

Ann

ual g

row

th ra

tes

of

empl

oym

ent (

%)

Arab States

Services Total


0.00.51.01.52.02.53.0

2009 2010 2011 2012 2013 2014

Ann

ual g

row

th ra

tes

of

empl

oym

ent (

%)

Asia and the Pacific

Services Total


-2.0

-1.0

0.0

1.0

2.0

2009 2010 2011 2012 2013 2014

Ann

ual g

row

th ra

tes

of

empl

oym

ent (

%)

Europe and Central Asia

Services Total


0.0

0.5

1.0

1.5

2.0

2.5

2009 2010 2011 2012 2013 2014

Ann

ual g

row

th ra

tes

of

empl

oym

ent (

%)

World

Services Total


…with female persons increasing their share in the total services employment.

567.5

992.2

380.7

760.5

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Sha

re in

tota

l ser

vice

s em

ploy

men

t (%

)

Num

ber o

f ser

vice

s em

ploy

men

t (in

mill

ions

)

Male: Number of services employment (in millions) Female: Number of services employment (in millions)Male: Share in total services employment (%) Female: Share in total services employment (%)


Gender composition of global services employment, 1991-2014

GSC-related services jobs have gained importance almosteverywhere


Share of services in GSC-related employment and total employment (%)

0

20

40

60

80

2000 2011

Advanced economies

0

20

40

60

2000 2011

Emerging economies (except China and India)

0

10

20

30

40

2000 2011

China

0

10

20

30

40

2000 2011

India

Share of services in GSC employment Share of services in total employment

Manufacturing sectors in developing and emerging economies are increasing their importance in terms of services jobs creation

Share of country groups’ manufacturing sectors as export destinations supporting services jobs, 1995 and 2011 (%)

Source: ILO Research department based on WIOD; Kizu, Kuhn and Viegelahn (forthcoming).

0

5

10

15

20

25

30

35

40

EU-15 NAFTA East Asia Rest of theworld

Other China EU-12 India

Sha

re in

tota

l ser

vici

ficat

ion

jobs

(%)

1995 2011

Services trade does not automatically lead to poverty reduction

Changes in services trade & working poor (2$ a day threshold), 2000-2012 (percentage points)

Source: UNCTADStat and ILO, Trends Econometric Models, October 2014.

East Asia

South-East Asia and the Pacific

Developing (Total)

South Asia

Sub-Saharan Africa LAC

North AfricaCEE and CIS

Middle East

-45

-40

-35

-30

-25

-20

-15

-10

-5

0

-8 -6 -4 -2 0 2 4 6 8

Cha

nge

in w

orki

ng p

oor (

% to

tal e

mpl

oym

ent)

Change in services trade (%GDP)

In all income groups, the share of servies in value added has increased.

69.3

45.7 43.2 40.5

60.9

73.9

55.5 51.9

46.6

70.5

30

35

40

45

50

55

60

65

70

75

80

High income Middle income Lower middle income Low income World

Sha

re o

f ser

vice

s va

lue

adde

d (%

GD

P)

1991 2014Note: The data for high-income group refers to 1997 and 2013. The data for World refers to 1995 and 2013, due to the data availability. Source:World Bank, World Development Indicator Database.

Changes in services value added between 1991 and 2014 (% GDP)

Documents

Services A SESSION - UNCTADunctad.org/meetings/en/Presentation/c1mem4_2016_p104_S1_M Corley-Coulibaly_en.pdfAfrica World Share of services employment in total employment (%) 1991 2014