Trade and jobs

Page 1

trade policy brief

Trade and jobs

February 2019

I nternational trade has created jobs in developed and developing economies alike, and has helped bring millions out of poverty. hile trade liberalisation is beneficial for the overall economy, some parts of the economy W benefit more than others; and in some cases, production activities decrease and workers lose jobs. or more workers to share in the benefits of trade, a more integrated policy approach is needed F to make the whole system work better for more people.

What’s the issue? International trade has been an important source of growth, development and jobs for many years. In recent decades trade has expanded significantly, thanks in large part to advances in transportation and digital technologies, alongside progressive market opening through multilateral, regional and bilateral trade agreements. This process has helped create jobs in developed and developing economies alike, and has helped bring millions out of poverty.

Trade allows firms to purchase goods and services from the most efficient sources combining cost competitive with quality – regardless of location – and to sell their goods and services to consumers in more markets, reducing average costs and prices. For consumers, trade means more choice and lower prices, accessing goods and services not available in the home market, or goods at a more competitive price.

Employment sustained by foreign final demand in G20 countries, 2005 and 2015 (as a percentage of total employment) %

2015

30

2005

25 20 15 10

Source : OECD estimates based on OECD Inter-Country Input-Output (ICIO) database, December 2018

www.oecd.org/trade

tad.contact@oecd.org

@OECDtrade

Saudi Arabia

Argentina

United States

Indonesia

China, People's Republi…

Brazil

Japan

Australia

India

Russian Federation

Mexico

Canada

Turkey

France

United Kingdom

South Africa

Italy

Korea

0

Germany

5


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