A new report from the International Trade Institute (ITI) says the outsourcing industry has contributed to rising joblessness, rising inequality and stagnating incomes.
The report, called « Employee Outsourcing: A Job Killer? », shows that a record 44.4 million jobs were outsourced in the United States between 2008 and 2017, with an additional 2.1 million jobs being created in the UK.
« Job creation is often the largest driver of job growth in the economy, but job growth is also a driver of inequality, » said Steve Zimbalist, the ITI’s chief economist.
« Many of these jobs are at the margins of the economy.
The report said the UK was the most outsourcing country, accounting for 15.4% of all jobs. «
In a world where automation is coming to replace some of these lower-skilled jobs, the loss of these low-skill jobs is going to be felt most acutely by people in these high-skill occupations. »
The report said the UK was the most outsourcing country, accounting for 15.4% of all jobs.
It said the United Arab Emirates was the next most, with 13.2%.
China was third, with 8.9%.
Russia was fourth, with 7.6%.
The report noted that more than 2.7 million US jobs were lost in the IT industry between 2008-17, with the IT and finance sector accounting for more than 10% of the job losses.
It also found that the IT sector has a disproportionate effect on the jobs lost from the global economy.
The ITI report said outsourcing has led to higher unemployment, higher income inequality and stagnation in the wages of many of the lowest paid workers in the country.
The outsourcing industry, which has contributed a huge chunk of the US economy, is one of the fastest-growing sectors of the global workforce, according to the report.
The study, based on data from the US Bureau of Labor Statistics (BLS), found that there were 4.6 million workers with a high school diploma or less, making them more vulnerable to outsourcing.
It found that nearly half of these workers lost their jobs between 2009 and 2017.
ITI is a think tank that has been focusing on outsourcing for the past five years.
The group recently published a report called « The Rise of Outsourcing and Its Impact on Employment », which highlighted the fact that IT outsourcing accounted for more jobs than any other sector of the U.S. economy.
« We found that jobs in the outsourcing sector were disproportionately held by women and minorities, » Zimbala said.
ITI found that outsourcing jobs account for nearly a quarter of all the jobs in low-skilled occupations, and the number of low-paid workers in IT has more than doubled in the last decade. «
It’s not only the jobs that are at risk from outsourcing, but also the skills and experience the jobs are based on. »
ITI found that outsourcing jobs account for nearly a quarter of all the jobs in low-skilled occupations, and the number of low-paid workers in IT has more than doubled in the last decade.
In the UK, the number with no formal training increased by over 200,000 in the same period.
IT I’s report said that despite a lack of regulation, companies have been able to take advantage of lax regulations to make IT outsourcing jobs more lucrative.
It added that the majority of these high level jobs are held by men, who tend to hold fewer education and higher wages than women.
« The outsourcing industry’s role in creating and sustaining inequality is clear, » Zimmal wrote.
« More and more people are falling behind in their own careers and facing a bleak future in the workforce as the technology and services industry becomes increasingly dominant. »
The IT I report also said that the outsourcing of low pay, often insecure work, is fuelling a culture of violence in the workplace.
It recommended that the government « immediately and permanently ban all outsourcing of high-paying jobs ».