The impact of political and environmental developments on the labour market

In today’s interconnected world, the global labour market becomes severely impacted when political and environmental issues arise. These issues often spread into the workplace, affecting the daily lives of workers across the world.

The latest report from the International Bar Association Global Employment Institute (IBA GEI) states that political and environmental factors, such as the Russia-Ukraine war and the climate crisis, are reshaping employment landscapes across the world.

Based on data from lawyers in 54 countries, the IBA GEI’s Twelfth Annual Global Report touches on the lasting impacts of COVID-19, the challenge of climate change issues, and the energy crisis that is derived from the Russian-Ukraine conflict.

According to the report, the war between Ukraine and Russia has left an indelible mark on the global labour market. The conflict has pushed out a number of people, causing economic hardship not only in Ukraine but also in other regions.

Due to the conflict, rising food and energy costs are being felt across the world, impacting inflation rates. These developments are challenging for employers who have to manage the changing landscape; meanwhile, workers have to scratch and claw to merely stay afloat in what is a tumultuous economy.

Employers especially are struggling with high production costs, especially increasing import and export prices, leading some to temporarily halt operations in affected countries.

In addition to these legitimate financial and workplace struggles, the emotional tolls of the war on employees and employers can be overwhelming. Uncertainty about the conflict and its impact on employees’ mental health and wellbeing have emerged as significant issues.

For example, individuals with family ties to Ukraine are experiencing heightened anxiety as a result of the war, creating mental health challenges in the workplace. These challenges impact the wellbeing of the employee and can be a detriment to their productivity; therefore, the business outcomes of the organisation they work for are also at risk.

Along with worldwide conflicts, the constant impact of the persistent climate crisis has posed a number of issues for workplaces across the world. Direct impacts include disruptions to ecosystem-based industries such as agriculture, forestry, fisheries, and tourism. Extreme weather events, which are becoming far more frequent, could potentially affect jobs in the energy, water, transport and telecommunications sectors.

It’s not all doom and gloom in the climate crisis aspect as it has created new employment opportunities in renewable energy, biofuels and resilient infrastructure.

However, as the world pushes towards an energy transition, job security is on thin ice. The coal mining industry, for example, which has a substantial workforce in Australia, will reportedly be affected in the near future. Mining unions have called for the establishment of an energy transition authority to inform policies and initiatives to protect and support employees who will be affected by this transition.

To show how fast this transition is processing, in Belgium, company cars will have to be fully electric by 2026.

Overall, the global labour market is a dynamic ecosystem shaped by a complex interplay of political and environmental factors. When conflicts like the Russia-Ukraine war arise, paired with the climate crisis, workplaces across the world are forced to adapt and survive.

Employment landscapes are reshaped, and new obstacles are presented. Therefore, organisations must build towards having adaptive measures in place that can innovate solutions to new problems on the fly, without sacrificing business outcomes. Building climate-friendly organisational policies is a good start for any business in terms of adapting to the new age.