NCPA - National Center for Policy Analysis

Exporting Jobs to India?

January 6, 2004

There's no denying that the United States is now exporting service jobs to India, particularly in information technology. However, the impact is not nearly as bad as the worriers claim, says economist Alan Reynolds.

According to the Bureau of Labor Statistics, these allegedly vanishing jobs are among computer programmers, software engineers, systems analysts, support specialists, network administrators, etc.

Yet, in 2002, employment in these computer-related occupations was nonetheless higher than in 1999, and so were salaries, says Reynolds:

  • In 1999, there were 2,620,080 jobs in these computer-related professions at an average wage of $26.41; in 2002, there were 2,772,620 such jobs at $29.63 an hour ($61,630 a year).
  • Figures on that specific job group are not available for 2003, but professional business service payrolls were up 2.3 percent by November, when compared with the year 2000, and jobs in information industries were up 4.9 percent.
  • Jobs in the subgroup of "computer systems design and related services" are down slightly from last year but have risen steadily for the past three months.
  • Real hourly compensation kept rising even in the recent recession and is now up more than 26 percent since 1980.
  • Real disposable income (which excludes stock market gains) rose at a brisk 3.9 percent annual rate cent from April to November.

Source: Alan Reynolds, "Exporting tech jobs to India?", January 4, 2004.


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