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Offshoring (a.k.a. Offshore Outsourcing) and Job Insecurity Among U.S. Workers

Author :
Publisher :
Page : 0 pages
File Size : 37,36 MB
Release : 2005
Category :
ISBN :

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Offshoring or offshore outsourcing is the term now being applied to describe the nascent practice among U.S. companies of contracting out the jobs of white-collar workers in service sector industries to firms located beyond our borders. The term is equally applicable to U.S. employers' outsourcing blue-collar workers' manufacturing jobs to other nations. As often is the case with a potential trend, however, few facts are available; instead, anecdotal accounts and varying estimates have been trumpeted in the media. No regularly collected series currently provides data on the number of workers who have lost their jobs to offshore outsourcing. The outsourcing of service sector jobs to specialized U.S. firms began in response to the early 1980s recessions. Employers increased their focus on the company's core mission and contracted out peripheral activities to other U.S. businesses. The 2001 recession prompted employers to achieve further efficiencies by utilizing now widely disseminated technologies that permit low cost, good quality, and high speed transmission of voice and data communications to extend offshore outsourcing beyond blue-collar manufacturing jobs to white-collar service sector jobs. Events also transpired during the intervening decade of the 1990s that enhanced other countries' ability to export services. Despite the labor market's turnaround, the state of mind that continues to prevail in the U.S. workforce is one that characterized an earlier "jobless recovery" when white-collar workers first became aware that their jobs had become more insecure. White-collar workers, who are the majority of all U.S. workers and of service sector employment, again have become anxious about their losing jobs. Although offshore outsourcing has been blamed for the employment cutbacks that followed the 2001 recession, it might have caused (at most) 10% of those job losses. Some believe we have seen just the tip of the offshoring iceberg, with perhaps a total of 3.4 million service sector jobs moving overseas by 2015 in a range of fairly well paid white-collar occupations. If true, the number of jobs sent offshore over the long projection period might account for just 2% of U.S. employment in a single year. In contrast, others expect that for a variety of reasons many companies will lose their enthusiasm for the business practice and use it more strategically. Congress has a longstanding interest in assisting workers who lose jobs through no fault of their own. In addition to unemployment benefits, policymakers traditionally have provided extra help through the Trade Adjustment Assistance (TAA) program to workers who lose jobs due to international trade. TAA generally does not apply to trade-induced layoffs in the service sector, however. Laws already exist to help workers undertake additional education and training (e.g., the Workforce Investment Act) should that be necessary for their reemployment. The most commonly suggested new proposal involves provision of wage insurance to displaced workers. This report will be updated as warranted.

Impacts of Offshoring on Jobs and Small U.S. Manufacturers

Author : Jonathan S. Krekl
Publisher :
Page : 0 pages
File Size : 23,63 MB
Release : 2012
Category : Labor market
ISBN : 9781608760640

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Offshoring, also known as offshore outsourcing, is the term now being used to describe a practice among companies located in the United States of contracting with businesses beyond U.S. borders to perform services that would otherwise have been provided by in-house employees in white-collar occupations. The term is equally applicable to U.S. firms offshoring the jobs of blue-collar workers on textile and auto assembly lines, for example, which has been taking place for decades. The extension of offshoring from U.S. manufacturers to service providers has heightened public policy concerns about the extent of job loss and foregone employment opportunities among U.S. workers. This concern is especially pertinent to policymakers because of a national unemployment rate persistently exceeding 9 per cent despite the end of the latest recession. This book discusses the impacts of offshoring on jobs and small U.S. manufacturers.

Outsourcing America

Author : Ron Hira
Publisher : AMACOM Div American Mgmt Assn
Page : 290 pages
File Size : 36,4 MB
Release : 2008-04-30
Category : Political Science
ISBN : 0814416284

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One of the most controversial topics in the news is the outsourcing of American jobs to other countries. Outsourced jobs have extended well beyond the manufacturing sector to include white-collar professionals, particularly in information technology, financial services, and customer service. Outsourcing America reveals just how much outsourcing is taking place, what its impact has been and will continue to be, and what can be done about the loss of jobs. More than an exposé, Outsourcing America shows how offshoring is part of the historical economic shift toward globalism and free trade, and demonstrates its impact on individual lives and communities. In addition, the book now features a new chapter on immigration policies and outsourcing, and advice on how individuals can avoid becoming victims of outsourcing. The authors discuss policies that countries like India and China use to attract U.S. industries, and they offer frank recommendations that business and political leaders must consider in order to confront this crisis—and bring more high-paying jobs back to the U.S.A.

Scott on Outsourcing

Author : Michael Dennis Scott
Publisher : Aspen Publishers Online
Page : 1105 pages
File Size : 43,83 MB
Release : 2006
Category : Business & Economics
ISBN : 0735561788

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It's been going on for decades. But today, more firms than ever are using outsourcing to help cut costs, improve business processes, and focus on their core business. The most successful of these companies are the best informed. Whether you're just

Offshoring and Employment Trends and Impacts

Author : OECD
Publisher : OECD Publishing
Page : 224 pages
File Size : 35,99 MB
Release : 2007-07-13
Category :
ISBN : 9264030948

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This report defines offshoring in detail, describes the wide-ranging effects that offshoring can have on employment both positively and negatively, and outlines the policy implications, suggesting ways to limit the downside of offshoring while building trust among stakeholders.

Offshoring of Services

Author : Sigurd R. Nilsen
Publisher : DIANE Publishing
Page : 88 pages
File Size : 22,85 MB
Release : 2006-04
Category : Business & Economics
ISBN : 9781422304945

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Much attention has focused on the offshoringÓ of services to lower-wage locations abroad. Offshoring generally refers to an org. purchase of goods or services from abroad that were previously produced domestically. Extensive public debate has arisen about both the potential benefits of services offshoring, such as lower consumer prices & higher U.S. productivity, as well as the potential costs, such as increased job displacement for selected U.S. workers. This report: provides an overview of experts' views on the potential impacts of services offshoring; describes the types of policies that have been proposed in response to offshoring; & highlights some key areas where add'l. research might help advance the debate about offshoring. Illus.