Impact Of Offshoring On The American Economy - 1417 Words

Economic Freedom With the current state of the economy, many companies are making the rash decisions of transferring their jobs to be completed by countries who pay their employees as little as 10% of the average earnings in America. Although this is happening in many professions, it is extremely noticeable in engineering with the managers of these large companies hoping to save a net cost of 70 percent (Ron Hira). This strategy, which is commonly known as offshoring, has been increasing in popularity exponentially and there have been many debates as to whether this method of production is a benefit, or a burden. It is uncertain what the overall effect of offshoring will have on the American economy but the workers, namely engineers, should begin adapting. It is believed that offshoring will have minimal effects on the employment rate in America due to the theory that when jobs are moved to other countries, the workers who have become unemployed will find employment as new opportuni ties are created. In reality, the adjustment will be difficult as proven by data collected by the Bureau of Labor Statistics Displaced Workers Survey in the year 2004. A survey showed that workers who were laid off between the years 2001 and 2003 remained unemployed at the beginning of 2004. It was also recorded that 43 percent of those who managed to find work earned the same pay as they did prior to being laid off, but the remaining 22 percent did not. These facts rely on the rate at whichShow MoreRelatedOutsourcing And Re Shoring Production1732 Words   |  7 Pages A globalizing economy along with cheap telecommunications technology is making it effortless for countless occupations that were formerly invulnerable to offshoring to be sent overseas. 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