The Implications of Service Offshoring for Metropolitan Economies
Source: The Brookings Institution, Metropolitan Economy Initiative
Service “offshoring”—the movement of service jobs from the United States to other countries, especially low-wage countries—has emerged as a concern of both political and business leaders in recent years. Using occupational data, this study projects the likely job losses from service offshoring between 2004 and 2015 in 246 U.S. metropolitan areas. It finds that:
- Twenty-eight metropolitan areas, with 13.5 percent of the nation’s population, are likely to lose between 2.6 and 4.3 percent of their jobs to service offshoring, higher than the average loss among the metropolitan areas studied….
- Large metropolitan areas and metropolitan areas in the Northeast and West are generally more vulnerable to service offshoring than small metropolitan areas or metropolitan areas in the Midwest or South….
- Metropolitan areas with large concentrations of information technology service jobs or backoffice jobs are generally more vulnerable to service offshoring than other metropolitan areas….
- At least 17 percent of computer programming, software engineering, and data entry jobs are likely to be offshored in particular metropolitan areas….
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