If corporations continue to outsource jobs to foreign countries we will continue to have an increasing problem with the unemployment rate. (Forrester analysts 2006) predict that by the year 2015 there will be 3.4 million jobs lost due to out sourcing to foreign countries. This means the unemployment rate will continue to rise. With the unemployment rate so high you will begin to see more Americans taking lower paying jobs. If Congress believes we will work for less pay they will see no need to increase minimum wage. In the U.S. House, Rep. George Miller (D-Calif) introduced a bill to increase the minimum wage to $7.25 over two years ago. The Republican leadership refuses to bring his bill to the floor for a vote. (Beney, 2006)
Lead researcher (John McCarthy, 2004) said widespread publicity over the cost savings associated with off shoring may have hastened the trend of short-term job loss expectations (Forrester, 2006). The average computer programmer in India earns roughly $10 an hour compared to more than $60 an hour for the average American worker. (McCarthy, 2004).
Companies continue to go to foreign countries for employees. Outsourcing jobs to foreign countries helps corporations cut cost because of the low wage they require according to their cost of living. Companies are not required to give these employees in foreign countries workman’s comprehension, unemployment benefits, medical or dental insurances, or retirement plans. Minimum wage has remained stagnant due to the availability of foreign workers.
The unfortunate part of out sourcing so many jobs is that this will cause American workers to lose jobs therefore increasing the unemployment rate. Workers are becoming discouraged because jobs are paying the same but requiring more. “The labor force participation rate is at its lowest level since 1988 which is even lower than the last recession” (Victoria Thieberger, Reut09:59 06-14-04). The American people are not oblivious to the situation and are becoming enraged.
Why has the United States government failed to provide accurate calculations on the unemployment report? According to (Thieberger, 2004) the agency that produces this report do not include “hidden” unemployed such as “1.7 percent of male wage earning population who are in prison or another 1.36 million” according to the Bureau of Justice Statistics. This is an increase from the reported 5.6 percent to 9.7 percent which is 3.6 million people that were not included. Misrepresenting the actual unemployment rate is excusing them from taking responsibility for this matter.
It needs to be brought to the attention of congress that this unresolved issue of out sourcing jobs to foreign countries is something the American people can no longer tolerate and something has to be done to save our economy. We hire these ladies and gentlemen to protect our interest so why are they protecting foreign economy instead?
The country that is receiving work due to off shoring is a major threat to our countries economy. Companies that are choosing not to outsource there jobs to foreign
Countries are finding themselves falling behind the power curve. It is almost similar to peer pressure in that these companies see the others making a lot more money by sending jobs over seas and they feel that they must outsource jobs just to keep up with them. As this trend continues it can only mean one thing for our country and that is our unemployment rate is going to continue to grow.
IT workers are very concerned about this trend of sending jobs over seas because they are the ones that are greatly affected. IT producing companies have moved 12% of there work overseas. (Hershey 2006) The amount of IT jobs being lost to foreign countries is becoming a serious issue that continues to get worse. In the past most jobs lost to outsourcing jobs to foreign countries cases were manufacturing companies. But in this day and age it seems like many different companies are beginning to follow suite.
These companies feel they need to resort to outsourcing in order to cut labor cost and to increase development. This is good for foreign countries but I can not emphasize enough the toll that it takes on the unemployment and our minimum wage situation. I too have been in the situation were the manufacturing company decided to move there work to a foreign country. The manufacturing company I worked for supplied over 1,000 jobs for the community. This company did however give everyone a chance to go to college but in some cases people do not have the time to go to work and school.
In another situation my mother was working for a company that also decided to outsource there jobs to a foreign country. I remember that being a very difficult situation for my family when I was growing up. Another problem is that they do not give the families any advanced warning that they are going to lay everyone off and give there jobs to foreign countries.
This situation of outsourcing jobs to foreign countries needs to be dealt with. I challenge everyone to think before they vote for the next president and listen to there plans to see which ones acknowledge that outsourcing jobs really is a problem. Congress needs to put limits on how many jobs that companies can outsource to foreign countries.
We are directly responsible for putting these people in charge of our country we must make sure they really are looking out for our best interest as employees of this great country. I know we can not tell these companies they have to move all there work back to the United States but we should at least be stopping the ones that are planning on outsourcing until we can establish some means to do so and still give the American people a chance to work. The unemployment rate will not get any better until we put a stop to outsourcing, and we will never see anything more than $7.25 per hour.
American Institute for Economic Research. May 7, 2006. Cost of living calculator, retrieved May 7, 2006 www.aier.org/cgi-aier/colcalculator.cgi
Afl-cionow (May 5, 2006) Help make minimum wage increase a reality. Retrieved May 6, 2006
Fred Niederman, Saint Louis University, USA, SumitKundu, Florida International University, USA, and Silvia Salas, Florida International University, USA (2006) Journal of Global Information Management Hershey: Apr-Jun 2006 Vol 14, Iss 2; pg 52, 23 pgs