American companies are hiring as over 1.4 million jobs were created by business this year... overseas. In fact, more jobs were created by American corporations overseas than in America for US workers.
More than half of the 15,000 people that Caterpillar Inc. has hired this year were outside the U.S. UPS is also hiring at a faster clip overseas. For both companies, sales in international markets are growing at least twice as fast as domestically.
The trend helps explain why unemployment remains high in the United States, edging up to 9.8 percent last month, even though companies are performing well: All but 4 percent of the top 500 U.S. corporations reported profits this year, and the stock market is close to its highest point since the 2008 financial meltdown.
But the jobs are going elsewhere. The Economic Policy Institute, a Washington think tank, says American companies have created 1.4 million jobs overseas this year, compared with less than 1 million in the U.S. The additional 1.4 million jobs would have lowered the U.S. unemployment rate to 8.9 percent, says Robert Scott, the institute's senior international economist.
This data puts the unemployed in a quandary. Since banks are not lending money to small businesses to grow and hire while their corporate big brothers have access to capital and markets, the only two areas of potential jobs are from the public sector, and from foreign companies moving into the US.
And on the state level, they are laying off, not hiring.
Even the government takeover of GM is part of this. In August, it was reported GM is building a new plant in Mexico. So much for taxpayer bailouts actually helping American workers.
There is no easy fix here as the government and corporate world have shifted to a global economy. Nationalism and job protection in your native state is a thing of the past, not when you can entice cheaper labor from foreign countries with lower standards of living.
Just remember this the next time a company runs an ad that tells you 'Buy American'.