[lbo-talk] offshoring

michael michael at ecst.csuchico.edu
Fri Sep 19 18:13:35 PDT 2003


This report does not acknowledge the effect of contracting out abroad, which is part of offshoring.

Doug Henwood wrote:


> Goldman Sachs writes in its weekly economic commentary:
>
> >* We estimate that relocation of US production to overseas affiliates
> >accounts for 300,000-500,000 job losses over the past three years. This
> >trend historically has been confined to the factory sector, but cheap
> >telecommunications and huge potential savings will encourage offshoring of
> >service functions to grow rapidly.
> >* Even so, international relocation is quite small compared to the
> >size of the US economy-worth about 0.1% of employment per year. It is one
> >factor behind the current "jobless recovery," but hardly the only one.
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--

Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901



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