- Economic development is impossible without the economic betterment of labour and the working class
Economic development is often projected through rising GDP figures, expanded industrial output, and increased foreign investment. Yet, these statistics can be misleading if they fail to reflect improvements in the conditions of the labour force and working class. No society can claim meaningful economic development while neglecting the economic betterment of those who form the backbone of production — the workers. History, research, and basic economic logic confirm that the working class is not merely a recipient of development but the foundation upon which true, inclusive development stands.
Working class: Foundation of every economy
From factories and construction sites to farms and transport networks, it is the working class that transforms capital, resources, and policies into tangible results. Infrastructure cannot be built, goods cannot be produced, and services cannot be delivered without their contribution. Thus, sustainable development hinges on safeguarding their economic rights, wellbeing and growth.
However, across both developed and developing nations, we often witness a concerning trend—while profits soar for corporations and economic indicators show upward movement, millions of workers face stagnant wages, insecure jobs, unsafe working environments, and the constant threat of poverty. Such an imbalanced growth model is unsustainable, both economically and socially.
Why labour welfare is non-negotiable for development
1. Productivity grows with worker welfare
Nations with high labour standards, fair wages, and secure working environments experience higher productivity and innovation. Countries like Germany and those in Scandinavia have demonstrated that worker welfare does not hinder competitiveness — it strengthens it. On the contrary, exploitative labour practices may lower short-term costs but damage productivity, morale, and social cohesion in the long run.
2. Working class drives consumption
Economic growth relies on strong domestic consumption, and the working class constitutes the majority of consumers. When wages stagnate, purchasing power declines, leading to sluggish demand, economic contraction, and ultimately business losses. The post-WWII American economic boom was fuelled by rising incomes among workers, highlighting how labour welfare feeds broader economic expansion.
3. Social stability is rooted in economic justice
History shows that economic marginalization of workers often results in unrest, strikes, and political instability. Sustainable development is impossible amid widespread discontent. Addressing workers’ economic grievances fosters stability, trust, and civic participation — essential ingredients for long-term growth.
4. Poverty reduction is impossible without labour empowerment
Improving working conditions, ensuring living wages, and providing social security directly combat poverty. Economic betterment of labour also enhances human capital, reduces inequalities, and promotes inclusive growth—outcomes that are crucial for achieving real development, beyond mere statistical growth.
Challenges to labour economic betterment
Despite the centrality of labour welfare, achieving it faces multiple barriers:
Globalization and race to the bottom: Countries often suppress wages and labour rights to attract investment, creating a global competition at workers’ expense.
Informal economies: In many developing nations, vast segments of workers are in informal sectors, deprived of legal protections and benefits.
Technological displacement: Automation and AI threaten low-skilled jobs, risking higher unemployment without parallel investments in skills development.
Weak labour representation: Suppression of unions and collective bargaining leaves workers powerless against exploitation.
Roadmap for true development
Economic development must be rooted in policies that uplift the working class, including:
- Enforcing minimum wages and adjusting them to inflation and productivity.
- Expanding social protection — healthcare, pensions, unemployment benefits, and safe working conditions.
- Investing in education and vocational training to future-proof workers’ skills.
- Supporting unionization and collective bargaining to ensure fair distribution of wealth.
- Formalizing informal sectors and extending legal protections to all workers.
Conclusion
No society can prosper while its workers live in economic insecurity. True development is measured not by stock market surges or GDP growth alone, but by the economic dignity, security, and wellbeing of the working class. Their betterment is not an afterthought of development — t is its foundation. Inclusive, sustainable progress is impossible without them.
About the Author
Muhammad Azam Tariq is a Pakistani researcher, writer, and socio-political analyst contributing to Pakistan & Gulf Economist and Daily The Spokesman. He specializes in economic policy, governance, foreign affairs, and regional development. Azam is affiliated with the Pakistan Africa Institute for Development and Research (PAIDAR) and the Pakistan Institute of China Studies (PICS). His research interests include labour rights, political economy, South-South cooperation, and contemporary socio-economic challenges in the Global South.
Writer may be approached at azamtariqalihaider@gmail.com