That number, however, is smaller than it was a decade ago. The Commerce Department also reports that during the 2000s, U.S.-based multinationals shed 2.9 million domestic jobs while adding 2.4 million jobs abroad. In the recession year of 2009, when these companies cut jobs across the board, they cut 12 American jobs for every one lost overseas (1.2 million vs. 100,000). Contrast these figures with those from the 1990s, when American multinationals added almost twice as many jobs in the U.S. (4.4 million) as they did abroad (2.7 million).
A recent Wall Street Journal article (subscription required) examining this shift ascribes it to three likely main causes. One is increasing productivity in U.S. factories. Another is that the companies are simply following their customers, as many large multinationals now do more business abroad than they do in the States. A third may simply be that the U.S. is a less attractive place for global firms to do business, with its higher business taxes, aging infrastructure and shaky education system.
Whatever the cause, it seems clear that increased global competition is taking its toll on what used to be a mainstay of the American economy and the source of the vast middle class of the 1950s. It also means that small businesses will become even more of a backbone of the national economy. One advantage smaller firms have over larger ones from a worker's perspective is that their jobs tend to stay close to home as the firms grow and mature.
By Sandy Smith
Sandy Smith is a veteran freelance writer, editor and public relations professional who lives in Philadelphia. Besides blogging for BusinessWorkForce.com, he has written for numerous publications and websites, would be happy to do your resume, and is himself actively seeking career opportunities on Nexxt. Check out his LinkedIn profile and read his other posts on BusinessWorkForceBlog.com.
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