Globalized labor markets bring talent and concerns to employers
The expanding pools of talent and their potential in shaping the workforce are viewed differently in emerging compared to mature markets.
Fear and hope on the global labor market
In emerging markets, 7 out of 10 employees perceive technology as a tool to enhance their current work lives compared to mature markets, where 5 out of 10 see it as an enabler. Those in emerging markets regard global competitiveness, and remote and project-based work as stepping stones to a new elevated work life with more opportunities and are 20 percent more inclined to accept a contract on a project basis. In mature markets, many are taking advantage of remote work opportunities to improve their work life and become untethered from the office.
Decision-maker views on remote hiring in 2025
However, opinions on remote competition vary by region. For instance, 65 percent of European employees have a negative view of remote competition from low-wage countries (as defined by the World Bank), and other western markets share this skeptical attitude. In comparison, 56 percent of employees from Africa are positive towards it and employees in other regions with low-wage countries share this sentiment.
This disparity may stem from some employees prior experiences with distributed work that was ineffective because of technical, geographical, or cultural barriers. Additionally, it may arise from fears of being made redundant in an increasingly harsh economic reality where companies may seek to cut costs by hiring remotely or on project basis from low-salary areas.
Employers fear remote brain drain
Six out of ten decision-makers believe that a global labor market will exist in the future, allowing residents of low-wage markets to compete for remote jobs abroad. Decision-makers in emerging and more mature markets have similar concerns and aspirations regarding a globalized labor market, but those in emerging markets believe they stand to lose more.
Generally, decision-makers agree that the labor market is becoming more competitive, although those in emerging countries feel it considerably more strongly, at 80 percent versus 68 percent. Managers in emerging areas are also more concerned about losing their best performers, and 72 percent believe it will become harder to keep them on board. This concern is also an issue for mature markets, with 59 percent of managers agreeing with this view. However, companies in emerging economies are far more concerned of losing their workforce to remote competition.
Decision-makers in all markets consider continuous personnel upskilling as a key growth area to fill the gaps in the workforce and improve competence internally. In agreement with managers, employees in emerging countries are 28 percent more likely to prioritize continuous learning. However, they are motivated by personal gains to maintain dominance and ensure they are ready for competition on a global scale.
Using devices and ICT may enable a global labor market and remote work, but decision-makers also clearly recognize this as a significant driver of attitude and behavior changes. In emerging economies, 45 percent of decision-makers believe that rising employee competitiveness is fueled by increased use of technology; this puts them in a catch-22 situation due to the continuous need for upskilling. They need to invest in their staff to motivate them, meet future needs for knowledge in new or expanded fields and equip their employees with devices and technology. But this also makes their staff more competitive and raises the likelihood that they may accept another offer. Employers are divided between those who view greater flexibility, remote work, and a globalized labor market as risk factors for losing talent and those who see it as a way around staff and competence shortages and rising salaries.
Technology and humans drive globalization
Increasing flexibility through remote work is a key area for enabling the globalization of the labor market. Widespread high-speed connectivity is a base demand as work needs to be agile and allow for high levels of adaptability. This implies that infrastructure investments will be necessary in rural and city environments to support a more global work setting. Equipping employees with new devices and a setup that takes advantage of existing and potential infrastructure upgrades will also drive the need for further improvements.
The flexibility movement, which enables a more globalized labor market, is fundamentally driven by human needs and desires, such as achieving a better work-life balance, remaining in one's hometown, or breaking free from the office. In essence, employees see flexibility, in various degrees and shapes, as a way to improve their lives.
Protective attitudes of employees and employers towards remote international competition may hamper the emergence of a globalized labor market. This may occur through enforcing local regulatory frameworks for remote work designed to safeguard local job opportunities or restrict the scope for remote employment. Nevertheless, it may also result in improved remote worker protection and the formation of bilateral agreements around distributed work and remote worker rights. For instance, remote workers ability to maintain a healthy work-life balance is jeopardized when they are required to work in another time zone. These types of problems may also be subject to regulation (ILO Flagship report, World Employment and Social Outlook, the role of digital labor platforms in transforming the world of work, 2021).
