According to the Wall Street Journal, US companies that operate globally continue to cut jobs in the US and focus employment overseas. Even with the excess employment pool and stagnant wages during the US recession, these trends were in no way reversed. This trend comes as no surprise as the media has been reporting on this employment shift prior to the worldwide economic downturn. However, what is recent is the new statistics released by the U.S. Commerce Department.
These new findings reflect that 2.9 million employees were cut from the payroll in the US and, at the same time, 2.4 million workers were hired internationally since 2000. This trend is quite concerning to officials as most multinational corporations employ America’s middle class workers. The Gini coefficient, which measures the inequality in the distribution of income in a country among the population, is quite staggering in its finding. Currently the CIA WorldFact Book found that, based on this statistic, the United States ranks #40 in the world as countries with the highest unequal distribution – sandwiched between Jamaica at #39 and Cameroon at #41. According to the Census Bureau, this unequal income distribution among the population has been increasing year after year and is further predicted to increase.
This news is continuing to turn heads and raise questions. Unfortunately, there have not been many answers. The Wall Street Journal tried to get some answers; instead they found that most multinational corporations refused to quantify how many of their workers were abroad and how many were in the United States. The answers they did get said that they were not hiring due to for cheap labor (which is a direct response to many of the accusations at multinationals), but instead expanding into to markets, requiring investments in research and development, infrastructure, employment, etc.
Let us know what you think. How do you think this trend will affect the global economy? Do you think this trend is going to proceed? What do you think are the underlying problems?