Investigations :: July 24, 2006
"Offshoring is moving up the technological food chain with more sophisticated jobs and facilities going overseas. For workers this translates into flat job growth and stagnant wages, which is hard on American families and our communities. We need to find ways for American workers to compete in the world economy without sacrificing their standard of living." - Science & Technology Committee Chairman Bart Gordon Offshoring is a reality. While many prefer to ignore the issue, U.S. jobs are being lost and U.S. workers are feeling the effects. Science Democrats are working to bring the truth about offshoring to light. A study from the Government Accountability Office - obtained in the 109th Congress - confirms that U.S. jobs continue to be moved "offshore" to lower wage environments. This study comes on the heels of a report from the Technology Administration within the U.S. Department of Commerce that found much the same. In continuing its committment to address U.S. competitiveness, Chairman Gordon most recently led Members in a discussion with hearing witnesses about the offshoring of high-tech jobs to developing nations, during a June 12, 2007 hearing. Members also discussed a recent University of Texas study which found that of the 57 major announcements of locations of global telecom R&D facilities in the past year, more than 60 percent were located in Asia, versus a meager nine percent located in the U.S. At the hearing, Gordon expressed his intent to continue exploring the implications of off-shoring in order to eventually develop the right policies to lead to a strong economic future for our country. Job losses continue in industrial sectors across the U.S. with little response from the Federal Government, noted U.S. House Science & Technology Committee Chairman Bart Gordon (D-TN). Gordon and fellow Committee Democrats have sought to highlight this growing problem – known as “offshoring” – in an attempt to insure hard-working Americans are kept in the loop on the state of their jobs. Democrats’ efforts have centered on obtaining data compiled in 2004 by analysts at the Technology Administration (TA) within the Department of Commerce. That report, entitled An Overview of Workforce Globalization in the U.S. IT Services and Software, U.S. Semiconductor and the U.S. Pharmaceuticals Industries, provided an in-depth analysis of the ongoing loss of U.S. high-tech jobs and represents the most complete analysis to date on offshoring of U.S. jobs. Until July 24, 2006, the TA analysts' report has never been publicly released. Here are the executive summary and, for comparison purposes, the twelve-page "six-month assessment" the Department of Commerce released last September. Democratic Members of the Science Committee have a long-standing interest in using Federal programs and agencies within our jurisdiction to undertake initiatives that prepare Americans for high-technology, high-paying jobs. In the 1980s, this "offshoring" seemed limited to manufacturing jobs in blue-collar industries such as textiles, steel or metal fabrication. The U.S. responded by helping create the precursors of the Advanced Technology Program and the Manufacturing Extension Partnership Program at the Department of Commerce. Recently, however, offshoring has begun to strike at the very high-tech jobs that we believed U.S. workers would move to fill as blue-collar opportunities shifted to other countries. A Cable News Network report in early March 2006 noted that 500,000 American jobs have migrated to India in recent years. That number is expected to triple in the next two years as American companies seek to cuts costs and streamline business. India is but one example of a country that seems to be gaining employment at the expense of American workers. Over the last six years, the U.S. has lost just under 3 million jobs due to offshoring. Now, we are witnessing software engineering, computer design, research and development, radiology, architecture and design and other high-value-added positions moving offshore to low-wage markets such as India, China, Ireland, and Brazil. For the past two years, Science Committee Democrats tried to get specific details and information from Federal experts on this alarming trend. Our efforts were met with resistance, stonewalled by Federal agencies, and a lack of the Committee's traditional bipartisan cooperation. The Federal Government did the research, taxpayers paid for the report and the Technology Administration produced its analysis and findings, yet the Administration buried the truth in rhetoric. Democrats wanted the data, and finally got it.
Brief Timeline of the Report and Informational Requests
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