Jobs outsourcing describes how U.S. companies, of all sizes, hire lower-paid workers in emerging markets instead of Americans. The advantage of jobs outsourcing is it helps U.S. companies be more competitive in the global marketplace by keeping costs low. The disadvantage is that it causes U.S. unemployment. Efforts to artificially restrict jobs outsourcing may give more jobs to Americans, but could make U.S. companies less competitive, eventually driving them overseas. Furthermore, different types of jobs are outsourced for different reasons. Find out how the different ways they affect the economy.
Human resources outsourcing reduces costs by pooling thousands of businesses. This lowers the price of health benefit plans, retirement plans, workers’ compensation insurance, and legal expertise. Human resource outsourcing particularly benefits small businesses by offering a wider range of benefits. Surprisingly, the recession may cause some human resource outsourcing firms to hire American workers.
In the past 20 years, many call centers have been outsourced to India and the Philippines. However, that trend is changing. Unlike technology outsourcing and manufacturing, there is a much smaller discrepancy between call center workers in the U.S. and emerging markets. Thanks to rising wages in India, and the high unemployment in thee U.S., call center workers only make 15% more than their counterparts in India - and some of these jobs are coming back to the U.S.
One-quarter of American workers make less than $10 per hour, or are living in poverty. Meanwhile, the top 1% of workers earned more in income than the bottom 40% of workers. This was in 2005, when the economy was still booming.Outsourcing is just one reason. Technology, globalization and a passion for "low prices" above all else are others. Find out how income inequality has dramatically risen in the last 20 years.
NAFTA was created to expand trade between the U.S., Canada and Mexico, and make them more competitive in the global marketplace. Why is NAFTA criticized for reducing U.S. jobs, and exploiting Mexico's farmers and its environment? How and why was NAFTA created, and has it fulfilled its purpose?
The freelance economy means that companies are laying off full-time, often older, workers and replacing them with part-timers, temp help and free lance workers. Here's how to find jobs in the freelance economy.