By Robert E. Scott | August 23, 2012
The China toll: A Report By The Economic Policy Institute
“China is moving rapidly upstream into computers and other advanced technology products, which threatens core, high-tech manufacturing industries that still remain in the United States,” Scott said.
The states with the biggest net losses, in terms of the total number of jobs eliminated or displaced, were California (474,700 jobs), Texas (239, 600), New York (158,800), Illinois (113,700), North Carolina (110,300), Florida (106,100), Pennsylvania (101,200), Ohio (95,900), Massachusetts (92,700) and Georgia (87,300). In 12 states, the jobs lost or displaced equaled or exceeded 2.2% of total employment: New Hampshire (2.94 percent of total state employment), California (2.87 percent), Massachusetts (2.86 percent), Oregon (2.85 percent), North Carolina (2.67 percent), Minnesota (2.66 percent), Idaho (2.65 percent), Vermont (2.43 percent), Colorado (2.38 percent), Texas (2.26 percent), Rhode Island (2.24 percent) and Alabama (2.20 percent).
Hard-hit sectors in manufacturing other than computer and electronic parts include apparel and accessories, textile mills and textile product mills, fabricated metal products, plastic and rubber products, and motor vehicles and parts. Service industries, including administrative, support and waste management services, experienced significant job displacement as a result of eliminated or displaced manufacturing jobs.
“Increases in U.S. exports support job creation in the United States, but increases in imports result in job losses—by destroying existing jobs and preventing new job creation—as imports displace goods that otherwise would have been made in the United States by domestic workers,” Scott said. “Thus, growing trade deficits cost U.S. jobs.”
Currency manipulation by the Chinese government has exacerbated the U.S.-China trade deficit. China’s productivity has soared, but because China has pegged its currency to the U.S. dollar instead of allowing it to fluctuate freely, the yuan has not increased in value. Thus, U.S. goods are less competitive in China and in countries where U.S. exports compete with those from China.
“China’s currency policies have contributed to the dramatic growth of the U.S.-China trade deficit and the loss of 2.7 million U.S. jobs since China entered the WTO in 2001,” said Scott.
You can view the full report here.
The growth of the U.S. trade deficit with China since that country entered the World Trade Organization in 2001 has had a devastating effect on U.S. workers and the domestic economy. Between 2001 and 2011, 2.7 million U.S. jobs were lost or displaced. Using a new model, the study by the Economic Policy Institute reveals a first look at how growing trade deficits cost jobs in every congressional district, including the District of Columbia and Puerto Rico. You can see data for all 437 districts by clicking on the states in an interactive map you can view here, thanks to the Alliance for American Manufacturers