Posted by: Dirk | April 21, 2008

Globalisation and the labour market

Yesterday the German Statistical Office published a note on jobs created and destroyed due to offshoring. Here are the numbers: between 2001 and 2006, German companies with 100+ employees destroyed 188,000 jobs due to offshoring. However, 105,000 jobs had been created in Germany in return. That’s about 56% percent. More detailed data is available: the number of jobs shed for low-skilled workers is 125,000, with only 37% new jobs of the same type created.

The numbers look better for high-skilled workers. 63,000 jobs were lost and 59,000 jobs were gained. In the service sector, offshoring leads to 20% more jobs. Globalisation creates winners and losers. With these statistics, we can better understand the magnitude of this effect. I will return to this topic later this week and present a EU version of Paul Krugman’s new paper Trade and Wages, reconsidered.

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