Is the U.S. the Next Low-Wage Haven?

Is the U.S. the Next Low-Wage Haven?

This article from The Institute for Southern Studies argues that the trend of losing American jobs to overseas competition may be on the point of reversing. China's wages, though rising, are still lower than those in the U.S,

But because American workers have higher productivity, and since rising fuel prices are making it even more expensive to ship goods half way around the world, costs in the two countries are converging fast.
Alliance for American Manufacturing Director Scott Paul cites factors that could bring jobs back to our shores:
Costs of labor and commodities are rising on the Chinese coasts, as workers demand higher pay. If companies move further inland to poorer areas, they hike their logistics costs.

In most of the world, the dollar is worth 25 percent less than three years ago, and in China 5 percent less.

Shipping costs are increasing because of rising energy costs.

Companies fear that in China they'll lose their intellectual property to spin-off competitors.

Some consumers prefer an American-made product.

The U.S. has an abundance of skilled but unemployed workers.

And U.S. wages are stagnant or even falling.

No comments: