The paper discusses the issue of job outsourcing prevalent among US companies today. While job outsourcing has been cost-effective for companies and businesses, this has also resulted to a high rate of unemployment in the US. The paper proposes measures in which the effects of job sourcing can be lessened or ideally, recommendations on how employment can be revitalized in the country at a cost-effective manner.
Job Outsourcing
T Persuasive Speech Outline -- Job Outsourcing
The Bureau of Labor Statistics, in March 2012, reported that the country's present unemployment rate is at 8.2% where 42.5% came from the long-term unemployed or those jobless for 27 weeks or more. This rate, although decreasing from March 2010's almost 10%, can still be seen as relatively high.
An issue being looked into in addressing unemployment is the outsourcing of jobs. The United States' 2005 monthly labor review defined it as the shifting of work formerly paid in-house by a company to another which could be located inside or outside the country. Offshoring, on the other hand, is the transfer of work from within to outside the U.S. Nevertheless, both describe the acquisition of service outside the country to decrease production costs.
President Barack Obama, as reported in the Economic Times, has repeatedly stressed for businesses to bring jobs back instead of sourcing them outside the U.S. He even added enticement by promising to incentivise companies that will create jobs here while offering no tax deduction to those that will still opt to outsource.
But what really is job outsourcing? How does it affect us? Dr. Paul Craig Roberts, Researcher and Writer aptly reported that:
"Trade implies reciprocity. It is a two-way street. There is no reciprocity in outsourcing, only the export of domestic jobs...if there are no given endowments because business know-how, capital and technology are globally mobile, the advantage lies with countries with untapped pools of educated and skilled low-wage labor. The advantage increases with the absence of...IRS, EPA, OSHA, EEOC and other regulatory bureaucracies..." (Roberts, March 7, 2003).
Dr. Roberts' explanation, certainly, is something to be concerned about especially when so many Americans are unemployed. Companies, although being able to save production and other costs, seem to be overlooking the fact that the U.S. will now teem with untapped equally skilled and capable workforce.
This workforce, although presented as mere numbers in reports, are still individuals and families who lost sources of living, shelter, education and security. Where then, can they turn to when their head earner loses his or her source of income? Although it is possible that savings and other financial sources could be accessed, without the assurance of speedy re-employment, wouldn't it be like pouring water into a broken pot?
But why do our companies have to outsource jobs? One good example was given by Michael Dell in the Economic Times. Dell, a top American CEO, was reported to be planning to continue expanding overseas despite calls for jobs creation in the country. He explained that:
"America has about 4% of the world's population. So, we have a desire to sell to 100% of the world's population. That means 96% of our customers are outside the United States. We say look we are going to go where the customers are. India is a huge market for us; growing fast, great success. China is a huge market for us. We are going where the customers are."
Nasscom, still in Economic Times, also reported that the U.S. has a shortage of skilled technical staff which triggers job outsourcing of software coding and computer hardware management jobs. Its President Som Mittal reported that:
"The U.S. economy has been going though challenging times. We are hopeful that positive moves towards rebuilding America will bring in desired results. The Indian IT industry has been contributing substantially to build innovation in the U.S. economy,"
Further, the Los Angeles Times reported in 2010 that:
"the offshoring of American production and jobs has been going on for more than two decades, with service firms more recently pushing the trend. Experts say more offshoring could help U.S. firms better compete in the global economy, thus boosting sales and profits that will sustain them and generate new business."
With the above reports and information, how then, should the United States move towards job creation, economic growth, and eventual further lowering of unemployment rates?
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