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"In the current economic recovery, low pay, low skill jobs account for twice the normal amount of job growth", reports Stephen Roach, chief economist for Morgan Stanley (New York Times, July 22, 2006). Mr. Roach attributes the low quality of new U.S. jobs to globalization: "Under unrelenting pressure to cut costs, American companies are now replacing high-wage workers here with like quality, low-wage workers abroad", he says.
So, the good jobs are going overseas we've all heard that. That's to be expected when a U.S. company can send a job overseas to be done by a well-qualified college graduate in India or China for one-third of what it costs here. Or a machinist job to someone who will work for a couple dollars an hour and regard himself as lucky to get it. We may not like it, but that's the way the world is, now. What's left here? Well, jobs that can't be exported, like carpenters and welders and some other skilled trades that work on-site, and low or minimally skilled jobs, like ditch-diggers and busboys. That's why you see college graduates going back to trade school so often now, learning how to be welders and carpenters, etc. Their high skills are no longer marketable in this country, at least not like they once were. But what do they find when they finally learn a trade and go looking for work? Foreign competition. Many jobs can't be exported, but cheap labor can certainly be imported. That's what amnesty is all about: keeping the supply of labor high so that wages can be kept low. American workers in their own home towns now have to compete for jobs with foreigners, and the competition depresses their wages! Don't look for things to get any better, either. Worldwide, the birth rate is exceeding the rate of job creation by several percentage points. Even while the global economy grows, the growth of jobs in that economy is stagnant. The supply of cheap labor out there continues to grow and grow, and they are looking toward America to find jobs. Close this page to return to the NAFBPO website. |