The World Trade Organisation (WTO) has cautioned that failure to address labour market problems by countries could have global ramifications.
"While today's labour market problems are largely traceable to domestic policy shortcomings, a failure to find answers could have global ramifications," WTO's World Trade Report has said.
By providing a forum where governments can meet, talk and negotiate, it said, the WTO offers an indispensable platform where governments can attain cooperative win-win approaches to the challenges of ongoing global economic change.
It also said that the current technological progress has led to a higher relative demand for skilled workers and a lower relative demand for workers performing routine activities.
"Like technological change, trade impacts productivity and welfare. Opening up to trade helps to allocate resources to the most productive activities and increases a countrys welfare, but the resulting gains in efficiency also require workers to adjust," it added.
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