“Trade and Unemployment”

International Trade and Agreement

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I. Introduction

During 2001-2010, unemployment spells caused by either import competition or overseas

relocations accounted for less than 2% of total involuntary displacements associated with
extended mass layoffs. Rigorous studies have also shown that those U.S. industries that compete
most heavily with Chinese imports tend to suffer the most severe employment losses. Those
studies also document the high cost of these employment losses, especially for workers with
relatively lower education levels whose skills are closely tied to a sector in decline in the United
States.

II. Executive Summary

The U.S. manufacturing sector was still producing the same quantity of goods, but it was
achieving those production levels with fewer and fewer workers. They would have predicted an
employment share of 8.8% almost exactly what the actual employment share was in 2010. But
during the two decades from 1960-1980 imports from China were virtually nil.
III. Time Context
2010

IV. View Point

US Manufacturing Sector

V. Central Problem
Rising unemployment rate

VI. Objectives
Must
 Provide works for the unemployed workers
 Emphasis on capacity creation and career direction for job seekers, new
employees, as well as business and industry
Wants
 Reduce the unemployed workers
 Opening to trade shifts jobs from import-competing sectors to export sectors.

VII. Areas of Consideration – SWOT Analysis

Strength
 Unemployed employees would be sufficiently covered by trade and jobs

Weakness

 Will affect the current workers

Opportunities

 Job openings
 Persuade companies to recruit more people

Threats

 Rising Unemployment rate

 Agreement of Export between other country
VIII. Alternative Courses of Action
 Import Chinese Worker

Advantage - China helps to increase the share of employment in U.S. manufacturing.

Disadvantage - Chinese imports tend to suffer the most severe employment losses.

 Chinese participation WTO

Advantage – More Chinese workers are coming from china that seeking for jobs.
Disadvantage - Some workers in the import-competing sectors become unemployed and have
difficulty finding new jobs in the growing export sectors.

 Provide Employment Opportunities

Advantage – It will reduce the unemployment

Disadvantage- Some workers in the import-competing sectors become unemployed and have
difficulty finding new jobs in the growing export sectors.

IX. Recommendation
 Import Chinese Worker

Advantage - China helps to increase the share of employment in U.S. manufacturing.

Disadvantage - Chinese imports tend to suffer the most severe employment losses.

X. Detailed Plan of Action

 Employees must provide a clear overview of the new employee’s position and
goals, as well as ensuring that the new recruits is mindful of occupational
practice, regulations and disciplinary procedures.
 Employers must meet with their staff to address possible performance or
disciplinary problems. Furthermore, open lines of contact will aid in the
resolution of certain issues.