Big U.S. firms are hiring overseas while cutting jobs at home

[OntarioVanMan]

Big U.S. firms are hiring overseas while cutting jobs at home | MLive.com
Published: Wednesday, April 20, 2011, 12:01 PM Updated: Wednesday, April 20, 2011, 12:21 PM
Jackie Headapohl

Big U.S. multinational corporations are hiring abroad while cutting headcount back home, according to a story in the Wall Street Journal.

U.S. Commerce Department data released this week show that U.S. multinational companies, which employ a fifth of all Americans, cut their U.S. headcount by 2.9 million during the 2000s, while hiring 2.4 million people overseas.

In 2009, the companies cut 1.2 million, or 5.3 percent, of their workers in the U.S. and 100,000, or 1.5 percent, of those abroad.

The trend is a switch from a decade earlier in which multinational companies created nearly two jobs in the U.S. for every one job they created overseas.

Why is this happening? The WSJ lists several possible reasons: globalization, rising productivity, a "combination of the U.S. tax code, the declining state of U.S. infrastructure, the quality of the country's education system" or possible a "failure of U.S. policies to counter aggressive foreign governments."

 

[greg334]

OVM,
Once I explained how the world system works but no one cared to listen. Labor costs are not reflecting our economic conditions (think Union wages).

BUT at this moment, one of the other factors involved is taxes, we need to do something about it and not worry about the revenue we produce but rather how we can seriously cut spending and revamp our revenue system - Fair Tax may help. The spending part needs to be at least 25% across the board to actually do something, so if this means social security is cut, so be it because everyone needs to do that shared sacrifice thing according to both parties.

 

[OntarioVanMan]

OVM,
Once I explained how the world system works but no one cared to listen. Labor costs are not reflecting our economic conditions (think Union wages).

BUT at this moment, one of the other factors involved is taxes, we need to do something about it and not worry about the revenue we produce but rather how we can seriously cut spending and revamp our revenue system - Fair Tax may help. The spending part needs to be at least 25% across the board to actually do something, so if this means social security is cut, so be it because everyone needs to do that shared sacrifice thing according to both parties.

Oh I think some listened Greg...But most put faith that government would get it and DO something by now....it is so transparent even at the grunt level...seems those of higher education are too stupid...

 

[greg334]

So I wonder if what some Greek guy in a robe said a long time ago has any meaning;

if everyone was educated, we would have a diluted population.

I think that means that today's college degrees are part of the problem because everyone has one.

The other thing that comes to mind is that todays associates degree may be equivalent to or even worth less than a 1940 high school diploma. In 1940, you knew where China and Germany is but today, talking to one with a degree, they are hard pressed to tell you where they are.

 

[OntarioVanMan]

So I wonder if what some Greek guy in a robe said a long time ago has any meaning;

if everyone was educated, we would have a diluted population.

I think that means that today's college degrees are part of the problem because everyone has one.

The other thing that comes to mind is that todays associates degree may be equivalent to or even worth less than a 1940 high school diploma. In 1940, you knew where China and Germany is but today, talking to one with a degree, they are hard pressed to tell you where they are.

To think in grandpas days just to graduate from public school you'd be considered a man of substance...then in my day just a high school diploma was considered an accomplishment....now a days most have some sort of degree but still haven't a clue to the meaning of life...sad....

 

[chefdennis]

Come on...these people that report this stuff have no idea....it is all about "greed"....

 

[greg334]

To think in grandpas days just to graduate from public school you'd be considered a man of substance...then in my day just a high school diploma was considered an accomplishment....now a days most have some sort of degree but still haven't a clue to the meaning of life...sad....

Well I can tell you there has been a decline in the validity of the diploma when they introduced the GED.

 

[blackpup]

Labor markets are subject to the law of supply and demand.

Environmental regulations probably not helping, though i do like clean drinking water as much as anyone.

Legal environment not helping.

Yall know this way better than I do.

jimmy

 

[Letzboogie]

So I wonder if what some Greek guy in a robe said a long time ago has any meaning;

if everyone was educated, we would have a diluted population.

Not at all. Germany has the most educated people in the world. The most advanced degrees per capita. Their economy is extremely strong and their jobs pay very well. Education is good.

think that means that today's college degrees are part of the problem because everyone has one.

What sense does this make?

The other thing that comes to mind is that todays associates degree may be equivalent to or even worth less than a 1940 high school diploma. In 1940, you knew where China and Germany is but today, talking to one with a degree, they are hard pressed to tell you where they are.

Sounds like someone is awfully jealous of successful, educated people.

 

[scottm4211]

Sounds like someone is awfully jealous of successful, educated people.

But he once explained how the world system works...

 

[cheri1122]

Not at all. Germany has the most educated people in the world. The most advanced degrees per capita. Their economy is extremely strong and their jobs pay very well. Education is good.

And the US can't manage this because?



What sense does this make?

As much as any other stereotype: based on 10% fact, 90% fiction. The lazy person's answer to everything.



Sounds like someone is awfully jealous of successful, educated people.

Ever notice the folks who maintain this opinion are without that degree?
PS Successful and educated are not always conjoined, like Siamese twins, either.

 

[greg334]

Not at all. Germany has the most educated people in the world. The most advanced degrees per capita. Their economy is extremely strong and their jobs pay very well. Education is good.

The point is that if everyone was educated at the same level, then their wouldn't be a need for competition to find the best of the lot. It is a common problem in IT where certs and degrees only take you so far but experience and the ability to learn outside the box matters.

Yep Germany surely does top a lot of the lists but not all Germans have a degree. They have skills that they can use, most have work ethics and most are industrious.

Their economy is strong for a number of reasons, one is their government works with the companies and the companies work with labor. Their jobs are based on the skills of the worker so you don't have someone who has a Doktor in front of their name working at MB putting windows in a car.

Their education system is very good, but they also make the students work for their grades, not like here where feelings matter more than academics.

What sense does this make?

It matters with competition among job seekers. If everyone had a degree, which means that not everyone should have one because they can't achieve that level of education, then standards have to be adjusted.

Case in point is a lot of the accelerated degree programs where you can also use life experience to gain key credits. A lot of companies won't hire people with these degrees because it only proves that the person was capable in passing the test but not capable in going through the traditional process or the degree program has made concessions in order to pass the person(s) in the program.

Sounds like someone is awfully jealous of successful, educated people.

No not at all, just the opposite but I wouldn't claim successful or educated people unless they actually got an education.

 

[14Wheeler]

But he once explained how the world system works...

Amazing , the amount of pro-googlers who've set out to define just about everything that can be defined. (with google assist turned up to 100%.)

A national network (google) outage would cripple the posting machine.

 

[paullud]

A lot of these jobs are call center positions which while they may not be highly skilled positions they pay pretty well. This is also one of the reasons I chose Verizon Wireless, not only do they have the best service any positions that they outsource are done within the US.