WEB: CH. 4, Salvatore’s Introduction to International Economics, 3rd Ed.

3. Job Loss Rates in U.S. Industries and Globalization

The following table shows that from 2003 to 2005 the percentage of jobs lost in U.S.
manufacturing was three times higher than in U.S. service industries, but in all sectors
(except professional and business services) job losses were much higher in the non-
tradable sectors (and thus not caused by increased imports, outsourcing or offshoring) than
in the tradable sectors. Most job losses in the United States, however, resulted from
technological changes that raised labor productivity rather than from international trade,
and it affected mostly low-skilled industrial workers. The fear, however, is that the
revolution in telecommunications and transportation is making possible the export of an
increasing number of high-skill and high-paying jobs, not only in manufacturing, but also
in a growing range of services that until recently were regarded as secure.

TABLE. U.S. Job Loss Rates by Industry (percent)

Industry Overall Tradable Non-tradebale
Manufacturing 12 12 17
Information 4 4 15
Financial Services 4 3 12
Professional & Business Services 4 6 3______

Sources: A. Bradword and L. G. Kletzer, “Fear of Offshoring: The Scope and Potential
Impact of Imports and Exports of Services,” Policy Brief, Petersen Institute, January 2008.