Posted by By Itster at 29 August, at 09 : 30 AM
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It’s pretty well known that American jobs are declining. The economy is tanking and the jobs that could keep us afloat are all heading abroad. The reason for this obviously is because it is much cost effective for US companies to outsource these jobs than to keep it in US itself. At one point in 2010, the unemployment rate was 9.6% and it was 9.1% in July 2011. The numbers are definitely mind boggling.
The factors listed by executives in choosing an outsourcing destination includes the following:
- Labor cost: 79%
- Technology and infrastructure capabilities: 62%
- Skilled labor: 61%
- Language Proficiency: 49%
- Economic stability: 44%
India and China are among the top countries that we are losing our jobs to. As America loses it’s jobs there’s a lot of blame game being played as well. From a survey taken from a pool respondents, 31% believe it is due to the policies of the form President George W. Bush. 33% of the respondents believe that it is due to the policies of President Barack Obama.
We came across this infographic created by MBAProgramInfo.com which highlights the issue of jobs and unemployment very well. The infographic is laid out well and has enough information to give us an idea as to why we are losing jobs to other countries. For example, hiring a software engineer in India is relatively cheaper as compared to one in US. They speak english and they are relatively skilled. India currently stands at the very top in terms of US jobs being outsourced.
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Erica, 6 months ago
Very interesting. Btw Pres. Obama’s first name is misspelled in the “Blame Game” chart.
Frank, 6 months ago
Being a retailer of luggage and bags, i can tell you some things in this article are not true, due to the high cost incurred from shipping products half way around the world(China), i have successfully sourced over 50% of the products i sell from the good ol USA!. These products are better quality, most are cheaper than China products and i can have my Logo printed on some items cheaper too. Their are still lots of manufactures here if you look for them, as far as furniture goes though, you will still have to replace that crap every year or spend a lot of money for some made in the USA / Canada, Like your parents furniture, it will last for 25+ years. I have found it is cheaper in the long run to pay for made in the US, and it does not fill the land fill up! Did you hear the latest, Canada stopped importing most junk from China, they like their citizens and the jobs they have.
bklah, 6 months ago
A fallen empire.
Years will speak of the arrogance and the stupidity of the republicans..
Come with Lady Lu, 6 months ago
[...] The economy is tanking and the jobs that could keep us afloat are all heading abroad.Source:http://itthing.com/where-in-the-world-are-american-jobs Aug [...]
anacrismerino's blog, 6 months ago
[...] The economy is tanking and the jobs that could keep us afloat are all heading abroad.Source:http://itthing.com/where-in-the-world-are-american-jobs Aug [...]
Ravi, 6 months ago
Apparently you have zero knowledge of outside world. Please correct India map, what you have is wrong – at least have geo knowledge before trying to be a guru on outsourcing.
How can you call it itthing when you don’t even know the map of India
Martin, 6 months ago
It’s funny that an article partially dealing with language proficiency misuses ‘it’s'…
Kyle, 6 months ago
It’s just greed at every level, people are quick to blame the executives but they just give people what they demand.
1. People want cheaper stuff and more stuff.
2. Executives make cheaper stuff over seas.
3. ???
4. Profit.
Take responsibility for what you can, buy locally made stuff when possible even if it is slightly more expensive.
Mark, 6 months ago
If we examine the reasons most people demand lower prices, it leads us directly back to those same executives. Why? Because in their efforts to prop up profitability, executives determined that the best path to bottom line “growth” was through wage stagnation, benefit cuts and mass layoffs (aka demand KILLER). The consequence of these actions was falling incomes among MOST consumers. In order to stretch what little income they had at their disposal, U.S. consumers sought lower prices. As we can all see now, the misguided focus on labor costs created a consumption/economic death spiral that continues to this day.
How do we reverse the trend? We either renegotiate or abandon free trade agreements to level the playing field, outlaw anti-competitive market practices/entities and commodity speculation, penalize social parasites who financially benefit from the U.S. economy without contributing to it in a meaningful way, and restore the U.S. middle class. The excessive redistribution/aggregation of national wealth benefitting the top 2-5% should be treated as the white collar crime it represents. There’s nothing wrong with pursuing profit/wealth as long as it doesn’t undermine widespread economic vitality. Unfortunately, that’s the situation we face today.
Nathan, 6 months ago
“If we examine the reasons most people demand lower prices, it leads us directly back to those same executives.”
Yeah, it’s the CEO’s fault that make me want gas prices to go back down. It wouldn’t have anything to do with making my own personal budget go further.
Kevin, 6 months ago
Almost 80% said labor cost was the reason. Bust the unions and start hiring US workers again. For example there’s no reason for an average autoworker to make more that $50K (including cost of benefits) a year. Unions autoworkers make over $120K (including cost of benefits) a year.
Jeff, 6 months ago
Kevin, labor unions haven’t been a real factor in the economy for a generation. By the time Ray-gun got around to nuking PATCO, it was the closest thing to an industrywide union left in the US that really meant anything. Methinks you’ve been sipping too much of the Tea Party’s (aka Koch brothers and corporatist allies’) output.
Jeff, 6 months ago
Kevin, continuing on: if unions are a “problem”, how come real income for the bottom 99.5% of Americans has been steadily declining since 1974, and increasingly so since 2002? You’re not better off than you were ten years ago, or thirty, unless you’re paying yourself at least $5 million or so a year.