Commentary

Workforce shortage and offshoring

A report released last week in Michigan looks at the manufacturing workforce and offshore outsourcing and concludes that people are paying attention to the wrong problem. Key points of “Impact of Offshore Outsourcing on the Manufacturing Sector in Michigan and the United States” include: * Increased manufacturing productivity plays a far greater role in job losses than offshore outsourcing. Only 12% of lost jobs — 1 in 8 — is due to trade, which includes both job displacement from imports and offshore outsourcing. * A worker shortage is looming. We need to focus on improving the business climate and increase foreign direct investment (“insourcing”).

Adrian Moore

Adrian Moore, Ph.D., is vice president of policy at Reason Foundation, a non-profit think tank advancing free minds and free markets.