International trade has been an important source of growth, development and jobs for many years. In recent decades, trade has expanded greatly, thanks largely to advances in transportation and digital technologies, alongside 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 and labour
Trade is generally regarded as a source of growth, development and jobs. In recent decades, trade has expanded greatly, thanks largely to advances in transportation and digital technologies, alongside 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.
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In some cases, production activities decrease and workers lose jobs. Such shifts within an economy often also involve wage adjustments. While the reallocation of these resources is necessary for firms and their workers to maintain their competitiveness, not all resources are able to be reallocated, and many unemployed workers find it difficult to find new employment. The adjustment process is not always automatic and takes time to occur. There are further complications as production is often regionally clustered, meaning there is also a regional dimension to adjustments.
This means continuing to pursue the economic gains and opportunities for inclusive growth that come from open markets by removing the barriers and reducing the costs that can prevent people and firms, especially small firms, from participating in trade. At the same time, it means protecting workers, not jobs. Protecting a limited number of jobs in a specific sector through trade barriers comes at the cost of competitiveness and jobs in related sectors. Resources can be better devoted to training and support programmes, including for more people.
