Outsourcing Continues Hurting Nebraska

Nebraska News
If you get on the phone to talk to a service representative from Dell, IBM, Lincoln Benefit Life, Experian, Hewlett-Packard, or the Nielson Company, you will probably be talking to someone who lives in either India, Costa Rica, or Mexico. And quite likely the person you talk to has a job that used to belong to someone in Nebraska.

Ten months into 2010, Nebraska is already tied with 2009 for being most active in a federal program that offers assistance to people who lose their jobs due to overseas competiton. The U.S Department of Labor is currently investigating whether workers who lost their jobs at Dell Perot Systems in Lincoln should get federal Trade Adjustment Assistance for having their jobs shipped overseas. Another investigation was just completed at IBM and assistance was granted to IBM employees in Omaha who lost their jobs to outsourcing.

If the Dell Perot Systems case is accepted that will bring this year's total of accepted cases to 10. Last year there were 7. Economic experts are saying that there really isn't any increase in outsourcing, that there is instead an increase in applications for assistance due to outsourcing, as awareness of the government service becomes more widely known.

According to the Lincoln Journal Star, "The most recent Commerce Department data show that employment at the foreign subsidiaries and affiliates of U.S. multinational firms grew by 729,000 in two years, to 11.9 million in 2008 from 2006. Over that same period, domestic employment by those firms slipped by 500,000 jobs, to 21.1 million."

What do you think about this situation? Feel free to leave a comment.

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