As China transforms from an emerging market to an economic leader, the era of outsourcing to this nation is coming to an end.
“Made in China.” It’s a slogan emblematic of many things — of cheap labor, of the loss of U.S. manufacturing jobs to lower-wage nations, of China’s rapid ascent to the ranks of the largest economies on Earth. China’s been blamed for the loss of many American jobs over the recent past, and data abounds to back up that claim. Washington’s Economic Policy Institute projects that more than 2 million manufacturing jobs and 2.7 million total jobs fled the U.S. for China between 2001 and 2011, fueling a renaissance in cheap products in American stores but also sending America’s trade deficit skyrocketing.
China’s jobs boom may be short-lived. Minimum wages are rising, workers, such has those Manufacturing in Mexico are demanding higher labor standards, and a rising middle class has turned from cheap manufacturing jobs to employment in the service sector. The IMF believes that China will experience a worker shortage of more than 100 million jobs by 2040, something unthinkable during the peak of the “Made in China” era.Read the Article