The document discusses several key labor issues facing developing countries: 1) Mass unemployment, poor working conditions, and wage gaps make it difficult for many people in developing countries. 2) Developing countries face challenges in employment opportunities and engaging workers. 3) Some key issues include a shortage of unskilled labor as automation increases, a lack of absorption of skilled labor as educated workers struggle to find jobs, and poor work cultures and militant unionism in some industries.

1. LABOUR IMPACT ON SC
Labor market factors drive the supply and demand for labor. Those
seeking employment will supply their labor in exchange for wages.
Skilled labor in an increasingly competitive world is essential.
Developing countries in Asia are rapidly building up their professional
labor pools. Meanwhile, the U.S. and Western European countries,
which have dominated economic advancements since the mid-1800s,
are paying more attention to preserving and growing their skilled labor
workforce. A skilled worker is any worker who has special skills,
training, and knowledge that they can then apply to their work. A
skilled worker may have attended a college, university, or technical
school. Alternatively, skilled worker may have learned their skills on
the job. These skills often lead to better outcomes economically.
Some countries in Europe have been at the vanguard of developing
skilled labor. Germany, in particular, is considered a role model with
its apprenticeship programs throughout its corporate sector in auto
plants, machine manufacturing facilities, technology hardware,
software development offices, and banking offices. The U.S. is just
beginning to replicate this training model for skilled labor.
Labor shortages in all industries are directly impacting local, regional
and global supply chains. In recent years as a company’s needs are
changing, the shortage of skilled labor is one of the most significant
concerns for the industry. A lack of skilled and qualified workers can
greatly affect the whole supply chain. Unskilled workers can trouble in
areas of accidents, health and safety, and security due to which supply
chain disruption can happen.
The eCommerce fulfillment and trucking industries feel the effects of
the current labor shortage. There are various reasons for this, but some
critical factors include demographic changes, increased benefits, and a
lack of training programs. The population is aging, meaning fewer

2. working-age people to fill jobs in these industries. At the same time,
unemployment rates have fallen significantly over the past few years.
It means that more people are now eligible for benefits such as
healthcare and childcare – which can take them away from the
workforce. Another issue is that many workers don't have the necessary
skills for today's job market. The demand for skilled laborers has
shifted dramatically in recent years, and many training programs
haven't been able to keep up. It has led to a shortage of qualified
workers, which will only worsen in the future. The tight labor market
has significant economic impacts. eCommerce fulfillment centers are
struggling to find enough employees to handle the influx of orders, and
trucking companies are facing higher shipping costs and longer
delivery times. The situation is likely to worsen before it gets better, so
businesses need to prepare now. The trucking industry also has a labor
shortage.
The American Trucking Association (ATA) released a report that by
2024, there would be a 330,000 shortage of truck drivers. Canada’s
Freedom Convoy protest of truck drivers against vaccine restrictions
impacted the whole supply chain of Canada which lead to food and gas
shortages. Loss of around 6 billion.

3. KEY LABOUR ISSUES IN SC
The labor problem is the economic term widely used toward the turn of
the 20th century with various applications. It has been defined in many
ways, such as "the problem of improving the conditions of employment
of the wage-earning classes.
Mass unemployment, poor working conditions, workplace
discrimination, and wage gaps make it extremely difficult for the
majority of people and families living in developing countries. Several
challenges developing countries face in terms of employment
opportunities and workplace engagement.
The labor problem encompasses the difficulties faced by wage-earners
and employers who began to cut wages for various reasons including
increased technology, desire for lower costs or to stay in business. The
wage-earning classes responded with strikes, by unionizing and by
committing acts of outright violence. It was a nationwide problem that
spanned nearly all industries and helped contribute to modern business
conditions still seen today. Possible causes include the failure to
account for the negative externality of reproduction in the face of finite
natural resources which results in over-supply of labor and falling
living standards for wage-laborers, depersonalization by machines and
poor working conditions.
Some key labour issues are:
 Unskilled Labour-
Absence of adequate vocational institutes- Skill formation among the
labor force in the country is very slow.
Induction of robots and automation in industries- Unskilled labor
becomes a large army of unemployed
 Lack of Absorption of Skilled Labour-

4. After completing their technical education like engineering, vocational
courses, etc., youth are finding it difficult to get themselves absorbed
in the secondary sector, leading to a huge problem of educated
unemployment in India.
 Poor Work Culture-
Unhealthy work culture in various productive sectors. Lesser economic
surplus in the production system which restricts indirectly its
absorption capacity in future
 Militant Unionism-
Labour market in India is also facing the problem of militant unionism.
In some productive sectors and that too in some particular states, trade
unions are not adhering to healthy practices. This has led to militancy
in the union structure and its activities, which is detrimental to the
greater interest of the nation.