Outsourcing Creates Jobs for Americans

NCPA’s Bartlett Says Restrictions Will Not Save Jobs

WASHINGTON (July 26, 2004) – The benefits of outsourcing to the U.S. economy far outweigh the costs, according to a new brief analysis released today by the National Center for Policy Analysis (NCPA). [http://www.ncpathinktank.org/pub/ba480/]

“Restrictions on outsourcing may save a few jobs in the short run,” said author and NCPA Senior Fellow Bruce Bartlett, “but they will come only at the expense of better jobs in the future.”

Bartlett’s analysis cites several benefits of outsourcing to the U.S. economy:

  • Over the past 15 years, corporations report an 82 percent increase in insourced jobs compared to a 23 percent increase in outsourced jobs.
  • Manufacturing jobs have been insourced at an even faster pace than service jobs.
  • Insourced jobs pay 16.5 percent more than the average domestic job.

“Increased economic globalization has caused jobs to move to the U.S. as well as away from it,” Bartlett added. “And because of the higher, increasing productivity of American workers, the jobs that move here pay more than the ones that leave.”

Bartlett also said that that outsourcing benefits the U.S. economy in other ways, including an increase in product availability, stronger demand for U.S. jobs, competitive gains for small businesses and a rising standard of living.

As you prepare your stories on the public debate about outsourcing, jobs and the U.S. economy, please let me know if you’d like to discuss the effects of proposed economic policy on the U.S. economy with Bruce.