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The Outsourcing
of American Jobs
Outsourcing has become one of the
most prevalent trends in the American economy and job market. In response to
the deepening economic recession, U.S. companies move their facilities to third
world countries and hire foreign personnel to minimize their expenses and boost
profits. It is generally assumed that outsourcing helps businesses to optimize
the quality and efficiency of their operations. As a result, they can charge
lower prices for their products and services, thus making them more attractive
for customers worldwide. Yet, outsourcing is not as innocent as it seems. The
downside of hiring workers from abroad is that communities receive fewer tax
dollars and witness a greater number of domestic workers seeking public
assistance. In light of these outsourcing trends, new college graduates should
be ready to pursue continuous learning, display workplace flexibility and
readiness to move across countries and job markets, if they want to find and
retain a decent job.
The outsourcing of American jobs
remains one of the most controversial topics of discussion in economic and
social disciplines. While corporations earn additional profits and face
increased revenues by outsourcing jobs to third world countries, the incomes,
earnings, and job prospects of domestic workers in America keep soaring. More
American companies are willing to hire employees from abroad in their quest for
lower operational and employee expenses. As a result, since 2001, more than 3.2
million U.S. jobs have moved to China (Peralta). Companies put American
employees in a direct competition with prospective employees from foreign
countries. "Competition with low-wage workers from less-developed
countries such as China has driven down wages for workers in U.S. manufacturing
and reduced the wages and bargaining power of similar, non-college-educated
workers throughout the economy" (Peralta). All states report considerable
job losses, California being at the top of the list with more than 560,000 jobs
lost to outsourcing (Peralta). Apparently, as more jobs are moved to foreign
markets, outsourcing is likely to become one of the biggest threats to the
health, stability and wellbeing within and across communities in the U.S.
Outsourcing hits badly American
communities. Its negative impacts on community growth are sophisticated and
pervasive. Basically, outsourcing means that American companies are willing to
pay salaries and taxes to employees and governments in any country of the world
except the U.S. The impacts of these decisions on local communities are
two-fold. On the one hand, local governments receive fewer tax dollars
(Greenwood 3). Outsourcing means that the money flows out of local and
community economies (Center for Effective Government). Consequently,
communities experience the lack of funds needed to maintain a robust public
services infrastructure. To put it simply, outsourcing deprives communities of
the basic resources they require to run public schools, manage public
transportations, ensure easy access to public health, and so on.
On the other hand, the outflow of
money from communities definitely hurts residents' pockets. With more workers
displaced by their low-wage competitors from less developed countries, their
purchasing power also declines (Greenwood 6). Communities with higher levels of
outsourcing see greater decreases in retail spending (Center for Effective
Development). Local merchants are likely to experience difficulties, because
low-paid domestic workers would prefer buying goods and services from large
discount stores to using the sales and market opportunities offered by local
businesses (Greenwood 4). Housing markets also suffer, as workers who are
either displaced or moved to lower-paid jobs have to look for cheaper housing
options (Center for Effective Development). Eventually, outsourcing limits
communities in their opportunities to create and sustain a positive atmosphere
of economic and social development. Job creation becomes problematic, incomes
and earnings fall, and the quality of life gradually deteriorates.
Another problem with outsourcing is
that more community members rely on public assistance. Greenwood confirms that
outsourcing forces community residents into using more public assistance for
housing, medical care, and food (10). Because public assistance is typically
provided by a state and federal government, local communities often do not
perceive the growing number of welfare recipients as a serious threat to their
wellbeing (Greenwood 10). Yet, with fewer tax dollars reaching the local and,
therefore, state and federal budgets, cuts in the amount of benefits available
to domestic workers are likely to follow (Greenwood 10). Displaced employees
who cannot find a decent job and fail to obtain timely public assistance will
resort to any means or strategies to improve their wellbeing, including crime.
In the long run, outsourcing can become a serious social, economic, and public
health hazard, and contemporary college graduates should be aware of it.
Apparently, new college graduates
should be fully informed about the current situation in the labor market and be
ready to struggle to find a decent job. They will have to become particularly
thorough choosing their future specialization, profession, and career path. For
example, Roberts reports that 14 million white-collar American jobs are likely
to be outsourced in the nearest future. Therefore, new graduates will either
lose their employment prospects or change their post-graduation career plans.
Simultaneously, any new graduate who wants to find and retain a decent job
should be ready to pursue continuous learning, become more flexible, and be
willing to relocate, if needed. Continuous learning can give any graduate a
strong competitive edge. Graduates should update their skills regularly to meet
the demand for qualified workforce in domestic job markets. They should
position themselves as flexible and ready to move, if the company of their
choice decides to move its facilities or outsource its personnel to a foreign
country. These are just some steps new graduates can make to make a stronger
case for hiring domestic workers in the U.S.
To sum up, outsourcing has
profoundly negative implications for communities' wellbeing. It limits their
financial and social resources and undermines their ability to provide quality
public services to residents. In the meantime, more community members seek to
rely on public assistance, as they are no longer able to provide for their
basic living needs. New graduates face tough employment challenges, and
outsourcing further aggravates the situation. Only those graduates who can be
flexible and ready to move can have a chance to find a decent position within
the U.S.
Works Cited
Center for
Effective Development. "Q & A with Daphne Greenwood: How Outsourcing
Can Harm Communities." Center for Effective Government, 3 Mar
2016. Web. 10 Apr 2016.
Greenwood,
Daphne T. "The Decision to Contract Out: Understanding the Full Economic and Social Impacts." Colorado Center for Policy Studies, Mar
2014.Web. 10 Apr 2016.
Peralta,
Katherine. "Outsourcing to China Cost U.S. 3.2 Million Jobs since
2001." US News, 11 Dec 2014. Web. 10Apr 2016.
Roberts, Paul
Craig. "The Offshore Outsourcing of American Jobs: A Greater Threat than Terrorism." Global Research, 13 Mar 2016. Web. 10 Apr 2016.
