Labor Department Downplays Offshoring

twitter writes "The New York Times is reporting the US Labor Department's first assessment of International Offshoring. The report claims that less than 3% of Q1 2004 jobs were lost to offshoring. Companies were asked if workers had been replaced and taken at their word. A Federal Reserve governor is also quoted as dissmissive. Estimates by Goldman Sachs are 20 times higher. Despite Washington's IP fetish, no one quoted is worried about the export of US research and knowhow. Your job and 830,000 others are gone."

Comments

BPO jobs:

[anandpur]

It is not downplayed in India. BPO jobs: Devil in sheep's clothing? Call centres put Indian mores on the hook

Re:Huh?

[Otter]

To clarify, the question is what percentage of lost jobs were lost to offshoring. (Not correcting anything you said, just the part you quoted!) But, nonetheless, I agree that the 60% figure is ludicrous.

Meanwhile, I'm comfortably ensconced in a US job offshored from Switzerland so I can't complain...

Re:cant wait to get bush out of office

[n3bulous]

The entire steel industry hasn't moved overseas. The US still produces about 100 million tons of steel every year, approximately 12% of the world total, and relatively close to the alltime high (135 million in 1953?). China, a much larger country with less regulation (think safety and health), only produces about 200 million tons a year.

The loss of jobs is due to improved efficiency, unions pricing themselves out of the market, and low demand. It's quite difficult to compete with nations having cheaper workforces, but that's how capitalism is supposed to work. In the second reference below, it is stated the world uses 100 million tons less than it produces. Low demand means lower prices meaning fewer jobs.

http://www.freetrade.org/pubs/speeches/ct-dg0225 99 .html
http://www.useu.be/Categories/Trade/Dec0701 SteelTa riffsQuotas.html