Encouraged by a pickup in exports, companies say that they will increase their capital spending and have fewer worries about a surplus of workers and excess production capacity.
The excess supply of workers and products that ought to be holding back prices and wages is not as ample as we thought.So this explanation has the merit of simplicity; is it plausible?
With the popularity of international migration, it is now recognized by various employment agencies in the Philippines that there has been an excess supply of workers; hence noting that "the market for overseas contract labor is a buyer's market" (McKenzie et al. 2014).
The report, long and worth reading, forecast job losses far in excess of those workers who might see a modest rise in wages.
Mr Greider chooses a global-crisis scenario, arguing among other things that the world is suffering from a shortage of consumption (an excess of saving) because workers in developing countries earn less than their productivity would indicate.
As long as the unemployment rate is high, there's a lot of excess slack, a lot of workers around, and that keeps wages from rising.
They could also have explored the feasibility of creating mobile pools of excess health workers to go around health centres, health stations and maternal and child health clinics, providing outreach services.
It is a convenient way to get rid of excess workers, says Mr Seike.
Those companies, home to powerful unions that protect what some view as thousands of excess workers, remain largely untouched by reforms.
