Wages and Productivity

The average American’s hourly wage increased 11.4% between 2001 and 2005, according to the Bureau of Labor Statistics.  American, computer specialist occupation’s wages also increased during this time period, despite heavy outsourcing and offshoring of software jobs.  This increase in wages is surprising because outsourcing and offshoring has put thousands of American software engineers out of work, which equates to more job competition and normally lower wages.  When companies have more workers to choose from, wages generally decrease.  However, the money companies save by outsourcing can be reinvested into employees, in this case worker’s wages increased.   The Bureau of Labor Statistics has collected industry’s annual, productivity rates for the last eighteen years.  According to the bureau’s data, productivity has generally increased in recent years, especially in the electronic, furniture, steel, automobile, chemical, and material industries.  The majority of stores and retailers have also increased their productivity.  The only industries, whose productivity drastically declined, were the textile and apparel industries.  This decrease in productivity is a direct result of globalization and offshoring.

December 9, 2006. Uncategorized.

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