2014 brief on american outsourcing, in 8 economic charts

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"Outsourcing is an evil that has to be stopped… [it] has lead to the drainage of jobs that belong to the American middle class [and] should be stopped at any cost." “There are people looking for work because jobs have gone overseas, and we need to act in this country.”

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"Outsourcingisanevilthathastobestopped…[it]hasleadtothedrainageofjobsthatbelongtotheAmericanmiddleclass[and]shouldbestoppedatanycost."

“Therearepeoplelookingforworkbecausejobshavegoneoverseas,andweneedto

actinthiscountry.”

American Outsourcing

8 in

Charts

Unemployment Rate, 1990-2014

1990 1994 200019961992 1998

Source: Reuters

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

2002 2006 20082004 2010 2012

1

Total Number and Percentage of U.S. Jobs Moving Offshore, 2003-2015

Source: Bureau of Labor Statistics and Forrester Research, Inc.

MillionsofJobs

2004 20052003 2006 2007 2008 2010 2015

1.75

3.5 3.5(6.0%)

1.7(3.1%)

0.3(0.6%) 1.0(1.7%)

2

Total Wages Associated with U.S. Jobs Moving Offshore, 2003-2015

Source: Bureau of Labor Statistics and Forrester Research, Inc.

US$Billions

2004 20052003 2006 2007 2008 2010 2015

50

$151.2

$75.4$19.7 $42.2

100

150

3

Do you believe outsourcing helps or hurts the economy?

69%

17%

10%

4%HurtstheEconomy

HelpstheEconomy

HasnoEffect

NotSure

4Source: AP

Average Annual Growth of Employment, Output, and Labor in U.S. Manufacturing since 1960

5 Source: Edwards and Lawrence (2013) using data from US BEA and World KLEMS

database; data for 2000 onward from Moran and Oldenski (2014) using data from US Bureau of Labor Statistics, via Peter G. Peterson Institute for International Economics

-2

-1

0

1

2

3

4

5

-3

1960-79 1980-89 1990-99 2000-09 2010-13

Outputperperson

Output

Employment

-1.0

3.64.0

3.53.9

6Source: Hufbauer, Moran, and Oldenski (2013) based on regressions using firm-level data for 1990-2009 from the US Bureau of Economic Analysis, via the Peter G. Peterson

Institute for International Economics

Increases in Employment and Sales Abroad by U.S. Multinationals, Accompanied by Increases in Domestic Activity

2 40 6 2 40 6 8

ExportsfromtheU.S.

CapitalExp.IntheU.S.

R&DSpendinginU.S.

U.S.Employment

U.S.Sales

Impactof10%increaseinjobsatforeignaffiliates

Impactof10%increaseinsalesbyforeignaffiliates

3

3

7

2

3

4

4

5

4

4

percentincrease percentincrease

7

History of Patented U.S. Inventions per capita, 1790-2011 by Year Granted

1800 1840 190018601820 1880

50

100

150

200

250

300

350

400

1920 1960 19801940 2000 2010

10-yearmovingaverageofpatentspermillionpopulaGon

Source: Bureau of Labor Statistics

8

Unemployment Rate, 1990-2012

1994 200019961992 1998

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

2002 2006 20082004 2010 2012

-6

-4

0

Unemployment

CyclicalUnemployment

Source: Financial Times

FIN