Posted on 10/06/2010 10:42:40 AM PDT by SeekAndFind
Though some American firms are bringing overseas work back home, evidence is growing that companies are moving more jobs than ever to China and other countries — a trend that could exacerbate efforts to bring down the nation's stubbornly high unemployment rate.
One sign of increased offshoring is the rising number of applications for federal Trade Adjustment Assistance, which usually goes to factory workers who lost their jobs because their work was sent overseas or was undercut by cheaper imports.
For the six months that ended Sept. 30, workers at about 1,200 offices and plants nationwide were approved for federal Trade Adjustment Assistance. That's about 20% more approvals than in the same six-month period last year, according to the U.S. Labor Department.
In addition, the most recent Commerce Department data show that employment at the foreign subsidiaries and affiliates of U.S. multinational firms grew by 729,000 in two years, to 11.9 million in 2008 from 2006. Over that same period, domestic employment by such firms slipped by 500,000 jobs, to 21.1 million.
"The paradigm has shifted," said John Challenger, chief executive of outplacement and consulting firm Challenger, Gray & Christmas. "Most companies see the next phase or era of growth as global.… That'll still create jobs here, just not on the scale when they were focusing on growth in the U.S."
That trend could further stall the recovery, which many economists believe will continue to lack vigor while unemployment remains at current levels — 9.6% nationally and 12.4% in California. The government is expected to report Friday that the economy added few if any jobs in September.
(Excerpt) Read more at latimes.com ...
Philippine President Benigno Aquino III arrived in New York to attend the UN summit just last week. On the side, his delegation actually was talking to JP Morgan Chase.
RESULT: JPMorgan Chase’s telephone banking operations, from Troy, Mich. and CKE are moving their technology assistance desk to the Philippines.
HP is laying off an undisclosed number of human resources employees in California and nine other states, transferring their functions to Panama.
I also heard that Price WaterHouse Coopers, the giant accounting from is laying off 125 people and moving their work to Uruguay.
It is not cheaper labor. it is a cheaper environment from a regulation stand point. If government and unions would go away and let business do what it does they could not afford to move off shore.
‘cheap labor’ is always a goal, just as any cost savings measure to maximize profit while minimizing expenses. The question becomes what is causing our labor to be priced out of the market? We can’t, on one hand, complain how the government strangles businesses with high taxes and regulations but on the other hand, damn them for reacting to that through means such as finding labor in markets that is affordable to them.
RE: If government and unions would go away and let business do what it does they could not afford to move off shore.
Are techology support and assistance jobs unionized? If not, why are they moving overseas?
Absolutely, the Telecommunications Workers of America which unionizes 'call center' type positions is massive and has a reputation of not bending in negotiations.
Higher taxes, ObamaCare and CapNTrade and stuff will just make the cost of labor HIGHER too.
It’s not just unions, its everything fromtaxes, regulations, paperwork, benefits, taxes and taxes.
most call centers are if they are tied in any way to a telecom company (covered by CWA)
More dive by media fruitloops, trying to hide the fact that while labor costs are a factor, environmental and other regulations are a bigger expense, and therefore a bigger factor.
Class warfare can only go so far; sooner or later it runs up against people who can do math.
Taxes and regulations forced jobs overseas. Were I to put a product into production today - I wouldn’t even spend time considering the US. No point in planning to go bankrupt from the start.
I look at it as they are being driven out of the county by anti-business ‘crats.
Example: I can buy a completely made up, ready to install cabinet system for my garage made in China cheaper than I can buy the materials to make it myself due to Environmental fee’s the producers, manufacturers, and distributors of the products I need are required to pay, and pass on to us all in the costs of the product.
From the grower’s of the tree to the factory of the manufacturer to the distributor to the retailer the government is there with hand in their till scooping up what they want.
Where does all that money stolen by Government under the guise of “the environment” go to help “the environment” that allegedly needs to be fixed?
And it's not just the tax burden, either. Add the cost of complying with numerous (and frequently hostile) business regulations, new health care mandates and a failing public education system that turns out dolts-with-diplomas - and foreign wage arbitrage makes even more sense.
RE: We need to place a 10~15% tariff on all imported goods and materials.
Expect our trading partners to retaliate and similarly IMPOSE a 10-15% tariff on all goods coming from the USA.
I’d like to see how this trade war creates job in the USA.
Between your implied assertion the other day that terrorism doesn't strike light rail, and now your Smoot Hawley Act comments, I can only remain ever thankful you are not elected to any office.
Considering that we don’t export much anyway, it is a trade war that we would win.
You need to do little research.
America has massive exports of goods.
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