States that have lost the most jobs to China
http://bottomline.nbcnews.com/_news/2012/09/16/13782682-states-that-have-lost-the-most-jobs-to-china?lite
Debate over how many jobs the United States loses to China has gone on
for years. Today, China is one of the two largest manufacturing
economies in the world. The other is the United States. Many labor
groups and politicians are trying to tip factory activity back to the
U.S. � a difficult task to accomplish when companies send work to
China to bring labor costs down. So, in many cases, China cannot be
blamed for the shift in workers.
In a recent study, the Economic Policy Institute analyzed American
jobs lost to China between 2001 and 2011. During that time, �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,� according to
the report. Based on the study, 24/7 Wall St. identified the 10 states
that experienced the most job loss as a result of the deficit between
2001 and 2011.
Some industries were affected more than others. Between 2001 and 2011,
the U.S. trade deficit with China grew $217.5 billion, with U.S.
imports of computer and electronic parts, including computer,
semiconductors and audio-video equipment, making up 55 percent of the
total. Of the 2.1 million manufacturing jobs lost, more than 1 million
were in the computer and electronic products category.
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 like 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� 31st district, which forms
part of Austin, also home to many of the nation�s largest technology
companies.
Districts in some states, including Georgia and Alabama, �were
especially hard-hit by job displacement in a variety of manufacturing
industries, including computers and electronic products, textiles and
apparel, and furniture,� according to the institute. Out of the
country�s 435 congressional districts, Georgia�s 9th District is among
the top 25 for job loss. The district includes the city of Dalton,
which is home to manufacturers, including many prominent upholstery
corporations.
Despite the talk of a manufacturing resurgence, Robert Scott, the
author of the institute's study, calls this �hot air.� He notes that
50,000 manufacturing facilities have been closed since 2001 with very
few coming back anytime soon. He suggests the only way to get a
manufacturing resurgence off the ground is for the federal government
to crack down on China�s currency manipulation and to get American
companies to truly invest in manufacturing. �There is a lack of
willingness to put that in place,� Scott said. �Standing by and hoping
manufacturing is going to get better isn�t going to work.�
24/7 Wall St. identified the states losing the most jobs to China
based on the Economic Policy Institute report, �The China Toll.� To
reflect how much the trade deficit has affected state and local
economies, we considered states that lost the most jobs relative to
the population. On this basis, small states like New Hampshire and
Vermont have been just as hurt when worker migration is compared to
total jobs in each state. 24/7 Wall St. also reviewed the level of
export activity and job losses in the 50 states and 435 congressional
districts relative to the number of people employed by state. The
relative growth rate of gross domestic product for each state for 2011
and between 2008 and 2011 is based on data from the institute's
report. The July 2012 unemployment rate by state is from the Bureau of
Labor Statistics.
What emerges from these figures is that the shift of jobs to China
does not spare any state based on its unemployment rate or GDP growth.
Nor does it spare any single industry or sector, from technology to
shoe making. China�s ability to take jobs from the U.S. stretches
across nearly every aspect of the American economy.
These are the 10 states losing the most jobs to China.
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http://bottomline.nbcnews.com/_news/2012/09/16/13782682-states-that-have-lost-the-most-jobs-to-china?lite
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Hard to compete with $2.50 a hour average wage.