Job Drain


by Shia Michele Levitt


Levitt:

Before the 1990s, certain manufacturing jobs were more likely to be exported to countries outside the U.S.. Now more white-collar and service jobs are being outsourced as free trade policies are making it easier for companies to hire workers overseas. This shift leaves some workers in the US nervous. Marcus Courtney lives in Washington state, where he worked in the information technology industry during the 1990s. He's now founder and president of a union for IT workers.

Act: Courtney

"Today, what were seeing is a huge flood of information technology jobs and it's not just technical support, its programming, office jobs, accounting jobs, computer development jobs, but all moving overseas to places such as India for companies to slash their labor costs and this is a real serious economic threat to not only high-tech workers but to America's middle-class in terms of wages and benefits."

Levitt:

And Courtney says it's not just jobs that are lost to outsourcing.

Act: Courtney

"They're basically firing their best consumers. In order for people to consume goods, they have to have a disposable income and they need to have a high level of disposable income. And what offshoring is doing is exporting America's best paying jobs overseas."

Levitt:

Earlier this week, Federal Reserve Chairman Alan Greenspan said that the movement of US jobs overseas should eventually help the economy and workers. His position is similar to others who favor globalization and free trade as a way to spur economic growth. Susan Kaufman (pronunciation: Cowfman) Purcell helps run an organization made up primarily of Fortune 500 companies that have investments in Latin America. She says the trend towards outsourcing is just another transition in the US labor force, much like the shift from agricultural to industrial jobs.

Act: Purcell

In a sense, to want to stop this process, and say, you know, globalization is bad because we're losing all these jobs, it's sort of like, 'stop the world, I want to get off.' " "What you have to say instead, is say ok, these are the costs and benefits of continued economic growth and advancement.

Levitt:

Purcell says many Americans don't recognize the benefits that come from a global economy.

Act: Susan Purcell

"Whenever jobs go abroad, supposedly in order to or ostensibly to reduce costs, than all U.S. consumers benefit and many U.S. producers benefit also from less expensive inputs. So that, on balance, outsourcing is a good thing except for those whose jobs are outsourced."

Levitt:

Concern about employment has turned public attention to the role of globalization, as many critics hold free trade responsible for the loss of American jobs. Larry Birns, the Director of Council on Hemispheric Affairs, in Washington, DC., says many Democratic presidential candidates have become critical of free trade policies in recent months as these agreements are seen to not do enough to protect American workers.

Act: Birns:

"It may very well be, with the loss of 3 million jobs under the Bush administration and the fact that job creation has been at a very low, very unsatisfactory level, in spite of the slight economic improvement that this nation has seen, that free trade could very well become a predominating factor in the upcoming campaign."

Levitt:

Back in Washington State, union president Marcus Courtney says an increasing number of IT workers --and others in white collar jobs -- are beginning to organize and make their concerns known. And he says we can expect to hear a lot more about outsourcing on the campaign trail. For Columbia Radio News, I'm Shia Levitt.