Job loss in U.S. due to off-shoring is insignificant

The movement of technology jobs overseas is a growing practice but appears to have a minor impact on the overall U.S. economy, according to a new government study by the U.S. Government Accountability Office.

The report's main findings include:

The relocation of jobs overseas accounted for 13,000 or 0.9 percent of the 1.5 million layoffs reported in 2003.

U.S. imports of business, professional, and technical services grew from $21.2 billion in 1997 to $37.5 billion in 2002, an increase of about 77 percent.

Imports of computer and data processing services from India have risen from $8 million in 1997 to $76 million in 2002; India currently ranks as the 8th largest exporter to the United States in this sector.

While the negative impacts of off-shoring appear small, the report says the benefits to the U.S. economy, such as reduced business costs and increasing domestic employment in other occupations, needs further examination.

Source: International Trade: Current Government Data Provide Limited Insight into Off shoring of Services, United States Government Accountability Office, September 2004; and Jim Puzzanghera, Study: Off shoring Is on the Rise but Has Little Effect on Economy, South Mississippi Sun Herald, September 22, 2004.

For GAO text http://www.gao.gov/new.items/d04932.pdf

For Sun Herald text http://www.sunherald.com/mld/sunherald/news/politics/9734116.htm

For more on Tradehttp://www.ncpa.org/iss/int/

FMF Policy Bulletin/ 16 November 2004