Facts about Manufacturing

The conservatives always say:

“Our jobs are going out of the country because our government keeps obstructing business with over regulation and higher taxes than our competition in other countries.”  

SADLY — that isn’t the truth. The truth is labor costs are much less overseas.

PROOF – following chart, while old, proves the point.

Average Direct Labor Hourly Cost by Country, 2001

Source: Electronic Trend Publications and CircuiTree. Country US$


Germany 11.80

England 9.90

USA 9.60

Japan 9.05

Ireland 8.50

Spain 6.40

Mexico 3.25

Hungary 2.80

Singapore 2.60

Taiwan 2.05

Malaysia 1.30

India 1.25

Philippines 1.25

Thailand 1.20

Indonesia 0.90

China 0.85

SOURCE: We’re Moving Overseas! Are We Making a Big Mistake?


Phillip Blackerby, M.P.Aff


Businesses have been leaving the country in droves and it began in 1980 under the tax cutter Reagan and continued under the tax cutters Bush and Bush.

Tax cuts will not keep the jobs in the US.

The manufacturing sector of the U.S. economy has experienced substantial job losses over the past several years. In January 2004, the number of such jobs stood at 14.3 million, down by 3.0 million jobs, or 17.5 percent, since July 2000 and about 5.2 million since the historical peak in 1979. SOURCE :

A series of issue summaries from

the Congressional Budget Office

February 18, 2004


In addition

The decline in manufacturing jobs has swiftly accelerated since the beginning of 2000. Since then, more than 1.9 million factory jobs have been cut – about 10% of the sector’s workforce. During the same period, the number of jobs outside manufacturing has risen close to 2%.

Many of the factory jobs are being cut as companies respond to a sharp rise in global competition. Unable to raise prices – and often forced to cut them – companies must find any way they can to reduce costs and hang onto profits.

Jobs are increasingly being moved abroad as companies take advantage of lower labor costs and position themselves to sell products to a growing – and promising – market abroad. Economy.com, an economic consulting firm in West Chester, Pa., estimates 1.3 million manufacturing jobs have been moved abroad since the beginning of 1992 – the bulk coming in the last three years. Most of those jobs have gone to Mexico and East Asia. SOURCE: USA Today 12/12/2002


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