| What
is the impact of offshore outsourcing on the US economy and employment? "Despite
the outcry over the outsourcing of white-collar jobs to places such as India,
the latest US Government data suggests that foreigners outsource far more office
work to the US than American companies send abroad"
- The
Wall Street Journal, March 15, 2004 Former
Clinton Labor Secretary, Robert Reich says, "Outsourcing does not reduce
jobs in America."
- The
New York Times, February 15, 2004 In
a special report by the Chamber of Commerce of the United States (April 2004),
Thomas J. Donohue (President and CEO) states: •
Increases in productivity, the recent economic downturn, domestic business impediments,
and continued uncertainty are the primary reasons for recent job losses and the
slow pace of hiring, not the movement of work offshore. •
More white-collar office work is shipped from other countries to the United States
than the country ships overseas. • When
it comes to trade in services, "insourcing" exceeds "outsourcing"
by nearly $60 billion annually. • Even
with job losses in manufacturing and some service occupations, more Americans
are working today than at any time in history. More than a half million payroll
jobs have been created so far this year. The nation's employment machine is fundamentally
strong, and trade is generating tremendous net benefits for the American people.
• Under any estimate or forecast, the
jobs being outsourced amount to a small fraction of the nation's 138 million strong
workforce. • The nation's knowledge workers
have not lost significant job opportunities to foreign competitors. The unemployment
rate among Americans with a four-year college degree is just 2.9%. •
The recent extension of worldwide sourcing from manufacturing to white-collar
IT jobs does not threaten America's technological leadership. •
By the year 2010, there will not be a shortage of jobs, but rather a shortage
of workers. • To create jobs, it is critical
that America remains open to the worldwide economy-where 95% of potential customers
live. According to a report by
the McKinsey Global Institute (August 2003), every dollar of costs the United
States moves offshore brings America a net benefit of $1.12 to $1.14 (in addition
to the benefit to the country receiving the investment). Projecting a net savings
to the American economy of $390 billion by 2010 due to sourcing, McKinsey reasons
that as low value-added jobs go abroad, labor and investment can switch to jobs
that generate more economic value. In addition, sourcing also creates export markets
for US firms. read
more
| 
Sitemap
| Home
| Contact us
