Outsourcing Threatens Manufacturing Jobs, Especially Low-Skill Roles
The study looked at how different types of outsourcing in manufacturing affect employment. They analyzed data from 27 manufacturing sectors in the country and used a dynamic labor demand model to test the impact of overall outsourcing, low-tech outsourcing, high-tech outsourcing, and service outsourcing on employment. The results showed that overall outsourcing, low-tech outsourcing, and high-tech outsourcing all reduced employment. Low-tech outsourcing had the biggest negative effect, more than twice that of high-tech outsourcing. Service outsourcing, on the other hand, had no impact on employment in manufacturing.