The Breakdown About Insourcing & How it Creates Jobs in the U.S.
Job insourcing :The U.S. jobs created and supported by international trade and investment. Major source of job insourcing: Inward foreign direct investment.
From 1988 to 2003, foreign companies increased their direct investment in their American subsidiaries by 326 percent.
From 1988 and 2002, majority owned American subsidiaries of foreign companies created 2.3 million U.S. jobs.
In 2002, these subsidiaries employed a total of 5.4 million U.S. workers. That represented 4.0 percent of all employment in the United States.
Major source of job insourcing is U.S. exports of services that are subject to international competition.
Exports grew by an average of 10.3 percent a year from $27 billion in 1988 to $120 billion in 2003. In 2003,
these exports supported an estimated 1.4 million U.S. jobs. That represented 1.0 percent of all employment in the United States.
The amount of U.S. jobs created due to insourcing is increasing From 1988 to 2002, the number of U.S. jobs at
majority-owned American subsidiaries of foreign companies grew by an average of 5.2 percent a year, while the
number of jobs attributable to U.S. exports of services that are subject to international competition expanded by an
average of 5.8 percent a year. Both were significantly faster than the average of 1.5 percent a year for the U.S.
economy as a whole.
These newly created jobs are generally high-paying. In 2002, the average annual compensation at majority-owned American subsidiaries of foreign companies was $56,663 per employee, 30 percent higher than the average for all
In 2002, the average annual compensation for jobs attributable to U.S. exports of services that are
subject to international competition was $56,078 per employee, 28 percent higher than the average for all U.S.
workers. Read more...
James K. Jackson. Outsourcing and Insourcing Jobs in the U.S. Economy: Evidence Based on Foreign Investment.Data. .April 15, 2010.
But you shall freely open your hand to him, and shall generously lend him sufficient for his need in whatever he lacks.Duet. 15:8
USA TODAY Asks A Simple Question About Creating Jobs
"USA TODAY decided to look past the partisan crossfire and ask more than a dozen think tanks, economists, industry groups and lawmakers a simple question: What can Washington do to get America back to work again? You may find the answer very interesting." Read more...