The Impacts of Outsourcing Jobs on US Labor Market

With the current state of the economy, many companies are making the rash decisions of transferring their jobs

Fossil fuels and other power generates are slowly changing the world. Alternative power sources are slowly becoming more popular in everyday life while the technology progresses. Using these power sources that don’t pollute the atmosphere could be the change in the world that completely changes the way the world uses energy. Engineers and technicians have been producing these alternative ways for years and years. A few, but not limited to consist of: Solar panels, Wind turbines, Wave tech and much more.

Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.

‘Is your job next?’ headline blared, followed by the disturbing preview of the article inside: “A new round of globalization is sending upscale jobs offshore. They include chip design engineering, basic research— even financial analysis. Can America lose these jobs and still prosper (R. Hira, 2008, p-1)?” The reaction of this news was swift and divided. Definitely large corporations that will be outsourcing will make huge profits in the long run but “what about the American citizens?”

As the world has gotten “smaller” in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States.

The U.S. economy has seen many hardships within the last decade. The economy has suffered from a recession that is still threatening to cripple some Americans and unemployment has been at an all time high. People have lost homes and jobs and many businesses have gone bankrupt simply trying to survive. However, in the midst of this economic crisis some companies have managed to survive. Many companies, approximately 36% of them, have found a way to avoid economic collapse by cutting costs (Job Outsourcing Statistics, 2014). One of the most popular cost reducing strategies of our time is called outsourcing.

All of us, working or nonworking, get to enjoy Labor Day, a national holiday in September that gives the American people the day off. However, just how does this effect the nation when companies are using foreign labor? There are two prominent types of foreign labor that are used today; this includes the usage of factories over seas, or the bringing in of migrant workers. Migrant workers have been used before the Civil War in the 1860’s, including slaves brought from Africa to work on plantations. Today, in the United States, migrant workers are those who have fled and work for a company, legally or illegally. The most popular and stereotypical example are Mexicans.

     The exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped overseas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs Americans precious jobs.

On the same note, the energy revolution spoken of above brings forth another advance in the ongoing global climate situation. The nature of the Kyoto Protocol calls for nations to increase research and eventually semi-convert their energy usage to accommodate for cleaner energy. Products such as solar power, wind power, biomass, geothermal power, and hydropower are now widely being studying to create processes that use less coal, oil, and natural gas in production. Altogether the results have

Our society has faced two major energy related problems since the Industrial Revolution. The first is where our future energy resources are going to come from. The United States both consumes and produces an immense

Outsourcing is a method used by many corporations in which their products are manufactured in foreign countries often for cheaper labor.This method method of productions has it’s pros and cons.

In the past decade, a pattern has emerged of large corporations choosing to contract their labour to foreign countries in order to remain competitive. However, companies tend to relocate production to the poorest nations where labour is cheap and output is chief. As a result, outsourcing labour has made multinational companies subject to criticism for their immoral practices. This has created the classic ethical debate as to whether it is possible for multinationals to engage in developing nations in both an ethical and lucrative manner. For businesses, the difficulty is if one of these values should be favoured over the other.

In contrast, some believe that renewable energy is a key factor involved in helping the economy to grow. Many jobs are created in the manufacturing and running of renewable energy plants. The renewable energy and energy efficiency technologies created 8.5 million new jobs and $970 billion in revenue in the year 2006 (Langwith, “Renewable Energy is Economically”). The American Solar Energy Society says by 2030 it could generate up to $4.5 trillion in revenue for the U.S and create 40 million new jobs. This would represent one in every four jobs (Langwith, “Renewable Energy is Economically”). This shows how vital it is to get renewable energy companies in the U.S. It is important to build a stable economy again and do it all while helping the environment.

Globalization is the process regarding an increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture. It can also be tied to business ventures where businesses or other organizations develop international influence or start operating on an international scale. The idea of globalization has become very controversial in the United States labor market. There are many pros and cons on how it affects the labor markets. Along with the labor market controversy people also debate over whether globalization is a threat or opportunity to the United States economy. Although Globalization has brought a significantly positive impact on most countries in terms of economy, culture, and politics, it also has left some drawbacks behind on the same aspects.

The following pages focus on analyzing the effects of globalization on labor markets, which is an important international business topic. The Introduction presents the points of view used in addressing this issue. The Labor Markets section presents some of the most important characteristics of labor markets that must be presented in order to understand how they are affected by globalization. The Key Priorities of Labor Markets section presents some of the most important priorities of governments determined by globalization. The Globalization of Labor Markets and The Effects of Globalization of Labor Markets section provides an analysis of this issue, its effects and its importance. The Conclusions section provides some of the most important issues addressed by this paper.