5.24.2004

Offshore job use quickens; Use of cheap foreign workers widespread The Detroit Free Press (5/24)

New figures on offshore outsourcing suggest that American companies are sending even more white-collar jobs to low-wage countries such as India, China and Russia than researchers originally estimated.

Roughly 830,000 U.S. service-sector jobs -- ranging from telemarketers and accountants to software engineers and chief technology officers -- will move abroad by the end of 2005, a report this month by Forrester Research Inc. says.

The firm, based in Cambridge, Mass., projected in 2002 that 588,000 jobs would move overseas by the end of next year.

Forrester also increased its long-term job loss prediction, estimating that 3.4 million jobs will leave the United States by 2015. The company originally predicted long-term job loss of 3.3 million positions -- a figure that members of Congress and labor activists said was cause for great alarm. Researchers said the short-term losses surged as companies began experimenting, but the long-term numbers will likely moderate.

Forrester analysts boosted their short-term job loss expectations by 40 percent, based on updated job data provided by the U.S. Department of Labor.

But just in case you were feeling left out because you don't have a tech based job...
Executives in the financial services and technology industries have embraced the trend. Tech hubs such as Silicon Valley and Seattle have higher unemployment than the nation at large.

But the Forrester report says a new wave of white-collar offshoring among manufacturing companies -- automobile parts suppliers and agribusineses, for example -- will bring the trend to other parts of the country, particularly the Midwest. The region is reeling from offshoring of blue-collar jobs to low-wage countries in eastern Europe, Latin America and China. It's unclear what impact the loss of accountants, programmers and business analysts would have in places Detroit, Chicago and Cincinnati, McCarthy said.

We know what kind of impact the loss of these jobs will have: higher unemployment, lower tax revenues, increased reliance on public assistance, declines in other areas of the economy because folks don't have the purchasing power they used to, a rise in domestic violence, etc., etc., etc., We know what happens when unemployment rises, especially when it promises to be long-lasting.

We're all in this together folks, and we better get things turned around quick.

0 Comments:

Post a Comment

<< Home