Outsourcing Anxiety Overblown - US Labor Secretary
Sep 03, 2004
Elaine Chao, US Labor Secretary, has said that foreign companies have created more jobs in the US, outpacing the amount of work that US businesses have shifted abroad.
Chao said that in the past year, employers have cancelled-out about 300,000 jobs in the US in favor of cheaper labor elsewhere. However, about 9 million Americans work for US subsidiaries of foreign-owned companies. She said, "People talk about outsourcing a lot, but the anxiety belies the numbers."
In February 2004, the US federal administration had stated in its annual economic report that sending jobs out of the US "makes more sense" when the goods or services involved can be produced more cheaply abroad. However, N Gregory Mankiw, President Bush's economic adviser and chief author of the report, was forced to apologize for remarks he said were "far from clear and were misinterpreted."
Democratic presidential candidate John Kerry and others have criticized Bush for the transfer of jobs to overseas locations. Kerry's economic plan includes the elimination of federal tax credits for companies that send jobs overseas.
Chao said the administration is concerned about every lost job, but realizes that job shuffling is part of a dynamic economy that constantly requires workers to get new training. She said the administration was spending USD 23 billion on more than 30 job training programs.
Reported by Detroit Business News.
Chao said that in the past year, employers have cancelled-out about 300,000 jobs in the US in favor of cheaper labor elsewhere. However, about 9 million Americans work for US subsidiaries of foreign-owned companies. She said, "People talk about outsourcing a lot, but the anxiety belies the numbers."
In February 2004, the US federal administration had stated in its annual economic report that sending jobs out of the US "makes more sense" when the goods or services involved can be produced more cheaply abroad. However, N Gregory Mankiw, President Bush's economic adviser and chief author of the report, was forced to apologize for remarks he said were "far from clear and were misinterpreted."
Democratic presidential candidate John Kerry and others have criticized Bush for the transfer of jobs to overseas locations. Kerry's economic plan includes the elimination of federal tax credits for companies that send jobs overseas.
Chao said the administration is concerned about every lost job, but realizes that job shuffling is part of a dynamic economy that constantly requires workers to get new training. She said the administration was spending USD 23 billion on more than 30 job training programs.
Reported by Detroit Business News.