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Posted by: Michael Mandel on April 19
The Bureau of Economic Analysis just published the latest figures on multinational employment at home and abroad, through 2005. It shows, as one might expect, that U.S.-based companies have been shifting both their employment and capital spending abroad.
|change in capital expenditures, 2000-2005||change in employment, 2000-2005|
|U.S. operations of U.S-based MNCs||-55.6||-2.4|
|Majority-owned foreign affiliates of U.S.-based MNCs||26.7||0.9|
|U.S. operations of U.S-based MNCs||-14%||-10%|
|Majority-owned foreign affiliates of U.S.-based MNCs||24%||11%|
|Data: Bureau of Economic Analysis. Nonbanks only|
In some sense, the shift through 2005 has not been as big as one might expect. A 10% decline in workers in the U.S. seems fairly minimal, given the amount of restructuring. And only about one-third of that can be attributed to jobs shifted to majority-owned affiliates.
Michael Mandel, BW's award-winning chief economist, provides his unique perspective on the hot economic issues of the day. From globalization to the future of work to the ups and downs of the financial markets, Mandel-named 2006 economic journalist of the year by the World Leadership Forum-offers cutting edge analysis and commentary.