10/20/2012 12:45 AM ET|
States losing the most jobs to China
A report measures the extent to which US manufacturing eroded between 2001 and 2011 as China's low-cost factories lured jobs overseas.
Debate over how many jobs the United States is losing to China has raged for years. China is one of the two largest manufacturing economies in the world. (The other is the United States.) Labor groups and politicians are trying to tip factory activity back to the United States -- a task made more difficult by the lure of cheaper labor in China.
The Economic Policy Institute has analyzed American jobs lost to China between 2001 and 2011. During that time, its report says, "the trade deficit with China eliminated or displaced more than 2.7 million U.S. jobs, over 2.1 million of which were in manufacturing."
The EPI report, titled "The China Toll," found that some industries were hit particularly hard.
Of the 2.1 million manufacturing jobs lost in the period studied, more than 1 million were from the computer and electronic products sector, as Americans increasingly imported computers, semiconductors and audio-video equipment from China.
As a result, many of the states that lost the most jobs have congressional districts with high concentrations of technology jobs. According to the report, states such as California and Texas have congressional districts with heavy focus on tech. Four of the five congressional districts with the highest proportional decline -- California's 13th, 14th, 15th and 16th -- are in the tech-heavy San Francisco Bay area. The other is Texas's 31st district, which includes part of Austin, another home to technology companies.
Districts in some states, including Georgia and Alabama, "were especially hard-hit by job displacement in a variety of manufacturing industries, including . . . textiles, apparel and furniture," the EPI said in its report.
Robert Scott, the author of the study, notes that 50,000 U.S. manufacturing facilities have been closed since 2001, and very few are likely to reopen. Scott suggests that the only ways for the United States to get a manufacturing resurgence would be for the federal government to crack down on China's currency manipulation and to get U.S. companies to invest more money in making things.
"Standing by and hoping manufacturing is going to get better isn't going to work," he says.
The shift of jobs to China has not spared any state, and every sector of the economy has been affected.
The website 24/7 Wall St. used the EPI report as well as government data to identify the states that lost the most jobs between 2001 and 2011 as a result of the trade deficit. Here's a look at the five states losing the most jobs, as a percentage, to China.
No. 5: North Carolina
Percentage of jobs lost: 2.67
July unemployment rate: 9.6% (fifth highest)
GDP growth in 2011: 1.8% (15th highest)
The congressional district hit the hardest in North Carolina was the 4th, where the state's Research Triangle is located. The Research Triangle is an East Coast version of Silicon Valley, with many technology employers having a major presence in the region.
North Carolina's furniture-makers have also lost jobs to China. According to Duke University, High Point, N.C., which bills itself as the "Furniture Capital of the World," has been losing jobs to China since the 1990s.
No. 4: Oregon
Percentage of jobs lost: 2.85
July unemployment rate: 8.7% (13th highest)
GDP growth in 2011: 4.7% (second highest)
Oregon's 1st congressional district was hit hardest by jobs moving to China, with a 5.4% decline from 2001 to 2011.
The district includes Beaverton, home to Nike (NKE), the athletic shoe and apparel maker that's been criticized for outsourcing to China for its human rights record in overseas plants.
The good news for Oregon is that the economy is starting to turn around. Between 2008 and 2011, the state's gross domestic product grew by 9.4%, which was higher than all but two states.
More from 24/7 Wall St.:
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Americans are tapped out. We have been using and taking and wasting for decades. These other countries have room for endless growth because for decades they had nothing, and as they take our jobs and have more money to spend they want the good life. Who would you rather sell clothes to a man with one suit who suddenly has money to buy ten and actually needs them, or an American who has a closet full of suits in every color, and only goes shopping because he is bored and greedy.
Businesses have sold all the crap to Americans that we can legitimately afford to buy, and they have moved on to greener and fresher pastures. I repeat - the jobs are never coming back. Even if they do we will still collapse.
Please!!!!! Read some history and see who and when the war on the middle class started and who started it! A clue.......it was long before Obama.
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