Liberal myth

Outsourcing will cause a net loss of American jobs.

The facts

Outsourcing has little net impact, and represents less than 1 percent of gross job turnover.

Little impact

• Over the past decade, America has lost an average of 7.71 million jobs every three months—which are all promptly replaced
• The most alarmist prediction of jobs lost to outsourcing estimates that 3.3 million service jobs will be outsourced between 2000 and 2015
• This prediction works out to an average of 55,000 jobs outsourced per quarter, or only 0.71 percent of all jobs lost

‘In-sourcing’ bigger

Over the past 15 years,

• The number of manufacturing jobs in-sourced to the U.S. grew by 82 percent
• The number of jobs lost as a result of outsourcing grew by only 23 percent

Other countries hurt too

America is not the only country which has lost manufacturing jobs.

• U.S. manufacturing employment declined 11 percent between 1995 and 2002
• China lost 15 percent of manufacturing jobs between 1995 and 2002
• The world on average saw 11 percent drops in manufacturing jobs between 1995 and 2002

Related Heritage research

• Tim Kane, “Myths and Realities: The False Crisis of Outsourcing,” May 13, 2004
• Tim Kane, Brett D. Schaefer, and Alison Acosta Fraser, “Ten Myths about Jobs and Outsourcing,” April 1, 2000