The globalization of labour markets will largely affect the developing countries as the earnings from the workers of any country contributes as the major source of income for the large part of inhabitants of developing nations. It mainly affects those workers that belong to poor sections of the society and have no material assets of their own. The wages are stagnant in developed countries since decades and the major reason for this is determined as the globalization of labour especially with the developing countries that provide low –wage workers to developed countries (Silver, 2003). Globalization of labour markets is working for the integration of labour markets at global front that is helping in bridging the gap between the workers of developed countries and the labour available in developing countries mainly because of the advancement of technology at global level. On the other hand globalization is working as a reason for the increment of domestic income inequality in various countries. Nations are using erecting protectionist policies to diminish the effects of forces of globalization which is not a very good approach to deal with the problems. Instead the approach of policymakers of various counties should be such that they can help labours all over the world in adjusting with the ever changing environment all round the world. Globalization of labour markets is viewed as a pessimistic approach by majority of people other than professional economists (Slaughter, 1997). Workers have the fear of job loss and even see a downward trend in wages structure from foreign importers, outsourcing of services and immigration of workers etc. On the other hand economists see globalization of labour market as an opportunity for labours of the country that provides them with the benefits of choice of employers, higher productivity, strong career growth and even goods at cheap prices. A program is also launched for the betterment and improving the motivational level of the workers and employers both i.e. the Globalization and Labour Markets programme (GLM).