Learn more about how outsourcing impacts wages?...

[Acebass]

What happens to wages when workers lose their jobs?
Between 2001 and 2003, 5.3 million workers who held their jobs for 3 years or longer were displaced. Only 65 percent found work again during that time, and of this group, 57 percent earned less in their new position.
Source: Bureau of Labor Statistics



Could your wages fall even if your job stays put?
The Economic Policy Institute, a nonpartisan think tank that conducts research about labor and the economy, argues that offshoring could have a strong impact on US wages.

In a recent article, EPI writes, “the overall economic impact of offshoring is already potentially large. Employer announcements of plans to move more white-collar jobs abroad can have an immediate effect on the willingness of the current workforce to accept lower pay increases and to work harder. If a greater share of jobs in the United States becomes exposed to foreign competition, this could place steady downward pressure on wages of U.S. workers.”

As other countries ramp up university programs and begin to produce larger numbers of highly skilled graduates, EPI argues that foreign competition could very well increase. An upsurge in educated workers from around the world could “vastly increase the global supply of educated labor, eroding the comparative advantage of the United States in this area,” and fostering more intense and direct competition for white collar jobs.



From my local news letter...

[acmejack]

1. BOHICA

[area51]

2. "...this could place steady downward pressure on wages of U.S. workers."

Could? It already does put downward pressure on wages, not to mention bennies offered.

[Acebass]

3. Especially when you factor in age ...

I speak from personal experience.
My wife worked for a company for 19 years then her job was outsourced. She was making good money but she wasn't old enough to retire, or wealthy enough. We had a standard of living that we were comfortable with and could support. Then a foriegn company came in , bought out her company and exports her job.
She's now over 50 and she's shoved back into the job hunting market.
Now the thing that is really disturbing is, that while she was working at that company she had an illness that restricted her (my wife was in customer service) while in intensive care a proceedure the hospital preformed damaged her vocal cords, but the company she worked for, because she was such a good worker, held her job for her.
Now she's forced to search for a new job in her carrer field but now she's handicapped and over 50 so that she's not as hot a comodity as she once was. Now the only job she can find is a temp job, her shortened unemployment benefits have run out,(looks good on gov. unemp. stats) and now she's making 5 dollars less on the hour than she once was.
Did outsourcing effect our wages and standard of living...you bet!...