Wednesday, March 28, 2007

A Paper On Service Offshoring in the States

Robert Atkinson and Howard Wial have written a report about the impact of Service Offshoring on Metropolitan areas. The paper has been published by Brookings Institution and is available online. Its findings are:

· Twenty-eight metropolitan areas, with 13.5 percent of the nation's population, are likely to lose between 2.6 and 4.3 percent of their jobs to service offshoring, higher than the average loss among the metropolitan areas studied.

· Large metropolitan areas and metropolitan areas in the Northeast and West are generally more vulnerable to service offshoring than small metropolitan areas or metropolitan areas in the Midwest or South.

· Metropolitan areas with large concentrations of information technology service jobs or backoffice jobs are generally more vulnerable to service offshoring than other metropolitan areas.

· At least 17 percent of computer programming, software engineering, and data entry jobs are likely to be offshored in particular metropolitan areas.

Overall, the loss of service jobs to offshoring in the near future will be modest. However, offshoring's impact will be greater in metropolitan areas with high shares of information technology or back-office service jobs and in particular occupations within metropolitan areas. To reduce vulnerability to service offshoring, federal, state, and local leaders should work in concert to pursue policies that boost productivity and innovation, assist workers who are harmed by offshoring, and modernize approaches to economic and workforce development

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