News / USA

US Jobs Coming Home?

A worker sews clothes at the Karen Kane clothing company in Los Angeles, California, Jun. 30, 2011. The Los Angeles apparel industry is riding a small but growing wave of incoming jobs as costs in China and India rise.
A worker sews clothes at the Karen Kane clothing company in Los Angeles, California, Jun. 30, 2011. The Los Angeles apparel industry is riding a small but growing wave of incoming jobs as costs in China and India rise.
Something strange is happening to the international labor market. Soaring costs and a changing labor environment in Asia have brought back American jobs that moved overseas in recent years. But experts warn that those returning jobs are small in number, and that American companies are still basing the bulk of their production abroad.

Several leading U.S. companies have announced plans to bring back highly skilled jobs from overseas, expand existing U.S. factories or build new ones. The reasons, they say, are increasing regulations, slower demand, a shortage of skilled labor and significant salary hikes throughout Asia.
 
Some of the firms bringing back jobs to the US:

Apple: Investing $100 million, bringing back 200 jobs
General Motors: Building a $258 data center in Colorado; plans to hire fewer than 10,000 workers
Oracle:  Restoring 130 jobs from Mexico, retaining 300 in Oregon
Chrysler: Investing $374 million in transmission factories, bringing back 1,250 jobs to Indiana
General Electric: Relocating one of its facilities to Georgia, bringing back 400 jobs
Ford: Investing $200 million, adding 450 jobs in Ohio; moving production from a Mexico facility to Michigan, plans to add 12,000 U.S. jobs by 2016
In China, factory wages jumped 18.9 percent in 2011 and 20 percent last year, according to the National Bureau of Statistics of China. It projects an increase by more than 9 percent this year.
 
And China is not the only nation reporting such increases. India is expected to post wage increases of more than 10 percent this year, the Philippines 7.3 percent and Malaysia six percent, according to Aonl-Hewitt, a global consulting firm.
 
Typically, companies relocating jobs are multi-national firms that are moving “around the margin,” said Andy Tsay, chief of the Operations Management and Information Systems department at Santa Clara University in California.
 
These companies, he said, make their decisions based on a variety of factors, including the cost of labor, fuel, land and equipment, the proximity of customers and suppliers, the complexity of the product, and the scarcity of skilled labor.
 
“If you hold all of them equal and … lower the cost of labor in one place, then yeah, it wouldn’t be surprising to see more of the jobs go,” Tsay said.
 
But Alan Tonelson, a scholar with the Washington-based U.S. Business & Industry Council, said there is another important factor – the “very substantial payments and tax breaks from state and local governments.” This, he said, is enticing many companies to bring jobs back to the United States, set up new factories or expand old ones. 
 
“That certainly sends signals to companies that it’s going to be a favorable climate for producing in the United States,” added Scott Paul, president of the Alliance for American Manufacturing.
 
Even so, the local and state tax breaks haven't resulted in an avalanche of jobs returning to the U.S.
 
One reason is that many modern products are made up of parts made in a variety of countries.
 
Employees work at a Foxconn factory in Wuhan, Hubei province, China, Aug. 31, 2012.Employees work at a Foxconn factory in Wuhan, Hubei province, China, Aug. 31, 2012.
x
Employees work at a Foxconn factory in Wuhan, Hubei province, China, Aug. 31, 2012.
Employees work at a Foxconn factory in Wuhan, Hubei province, China, Aug. 31, 2012.
A case in point is U.S. High tech giant Apple, which plans to invest $100 million to manufacture one of its product lines, the iMac desktop computer, in the United States, thereby creating about 200 jobs. But the company’s basic components manufacturer, Foxconn, continues to operate in China with more than a million workers. 
 
To make a tangible contribution, said Santa Clara University's Tsay, the entire overseas component ecosystem would have to move back to the U.S., along with dozens of companies and the educational system needed to provide them with the people with the right skills.
 
Short of that, the impact of the incoming jobs on employment or economic growth in the U.S. will be negligible, according to both Tsay and Paul.
 
U.S. manufacturers added 14,000 jobs in February, according to U.S. labor statistics. But experts such as Tonelson noted that the manufacturing sector is still about three percent smaller than it was at the end of 2007.
 
“It’s a little bit too early to say that we are seeing some major trends,” said Tsay.
 
Moving jobs from one continent to another is an expensive undertaking, Paul added, because it could require establishing factories and investing in equipment.
 
But he was optimistic that more jobs might come back five years from now due to lower U.S. energy costs, rising wages abroad, shifting currency exchange rates and intellectual property theft challenges in Asia.
 
“If you look at cost factors over the coming decade,” Paul said, “I think that you see the United States becoming even more cost-competitive.”

You May Like

Photogallery Early Nigeria Results Show Buhari Leading; Tampering Concerns Mount

One local group monitoring polls is concerned politicians might use security agencies to 'fiddle with the election collation process' at state level More

UN: 7,300 Civilians Killed in Boko Haram Insurgency

A senior UN humanitarian official tells the United Nations Security Council 1,000 people have been killed this year More

Turkish President Warns Iran About Trying to Dominate Middle East

Warning comes amid growing concerns inside Turkey that it will be sucked into a sectarian conflict with its neighbor More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Film Tells Story of Musicians in Mali Threatened by Jihadistsi
X
Greg Flakus
March 30, 2015 6:48 PM
At this year's annual South by Southwest film and music festival in Austin, Texas, some musicians from Mali were on hand to promote a film about how their lives were upturned by jihadists who destroyed ancient treasures in the city of Timbuktu and prohibited anyone from playing music under threat of death. As VOA’s Greg Flakus reports from Austin, some are afraid to return to their hometowns even though the jihadists are no longer in control there.
Video

Video Film Tells Story of Musicians in Mali Threatened by Jihadists

At this year's annual South by Southwest film and music festival in Austin, Texas, some musicians from Mali were on hand to promote a film about how their lives were upturned by jihadists who destroyed ancient treasures in the city of Timbuktu and prohibited anyone from playing music under threat of death. As VOA’s Greg Flakus reports from Austin, some are afraid to return to their hometowns even though the jihadists are no longer in control there.
Video

Video With Coalition Airstrikes, Iraq Entering 'Last Page' of IS Battle

American warplanes joined Iraq's battle against the so-called 'Islamic State' in northern Iraq late Wednesday, as Iraqi ground troops launched a massive assault on Tikrit. Analysts say the offensive could take the coalition a step further towards Mosul, the largest city held by Islamic State forces. Others say it could also deepen already-dangerous sectarian tensions in the region. VOA's Heather Murdock has more from Cairo.
Video

Video Philippines Wants Tourists Spending Money at New Casinos

Tourism is a multi-billion dollar industry in the Philippines. Close to five million foreign visitors traveled there last year, perhaps lured by the country’s tropical beaches. But Jason Strother reports from Manila that the country hopes to entice more travelers to stay indoors and spend money inside new casinos.
Video

Video Civilian Casualties Push Men to Join Rebels in Ukraine

The continued fighting in eastern Ukraine and the shelling of civilian neighborhoods seem to be pushing more men to join the separatist fighters. Many of the new recruits are residents of Ukraine made bitter by new grievances, as well as old. VOA's Patrick Wells reports.
Video

Video Islamic State Prisoners Talk of Curiosity, God, Regret

Islamic State fighter, a prisoner of Kurdish YPG forces, asked his family asking for forgiveness: "I destroyed myself and I destroyed them along with me." The Syrian youth was one of two detainees who spoke to VOA’s Kurdish Service about the path they chose; their names have been changed and identifying details obscured. VOA's Zana Omer reports.
Video

Video Germanwings Findings Raise Issue of Psychological Testing for Pilots

More is being discovered about the co-pilot in the crash of Germanwings Flight 9525 in the French Alps. Investigators say he was hiding a medical condition, raising questions about the mental qualifications of pilots. VOA's Carolyn Presutti reports.
Video

Video Hi-tech Motorbike Helmet's Goal: Improve Road Safety

In cities with heavily congested traffic, people can get around much faster on a motorcycle than in a car. But a rider who is not sure of his route may have to stop to look at the map or consult a GPS. A Russian start-up company is working to make navigation easier for motorcyclists. Designers at Moscow-based LiveMap are developing a smart helmet with a built-in navigation system, head-mounted display and voice recognition. Zlatica Hoke has more.
Video

Video DOJ: Illinois National Guard Soldier Tried to Join ISIS

U.S. federal law enforcement agents arrested two suburban Chicago men accused of trying to join ISIS overseas, while also plotting attacks in the United States. As VOA’s Kane Farabaugh reports from the Midwest state of Illinois, one of those arrested is a soldier of the Illinois National Guard.
Video

Video New Wheelchair Is Easier to Use, Increases Mobility

Traditional push-rim wheelchairs create a lot of stress for arm, shoulder and neck muscles and joints. A redesigned chair, based on readily available bicycle technology, radically increases mobility while reducing the physical effort. VOA’s George Putic reports.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.

VOA Blogs

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More