High-Skilled Jobs Should Stay In U.S.

But the loss of lower-paying, lower-skilled jobs,either to other countries or to other industries within a country,is an integral part of economic development. The change is always wrenching for those who lose their jobs, but the economy benefits as labor and capital are redirected toward higher value-added industries. And while there may be temporary dislocations of workers, persistently high unemployment is not the rule because workers eventually move to different jobs in new industries.

In 1810, 85 percent of the U.S. population worked in agriculture. By 1910, this figure had dropped to 30 percent, as the United States shifted to a manufacturing-based economy. In the 1950s and early 1960s, many blue-collar workers feared they would lose their jobs as automation became widespread in American industry. But while some jobs were lost, automation also heralded the rise of the computer industry, and the percentage of workers defined as middle class grew steadily.

Erecting barriers to labor movement is not the answer to stemming job losses. Labor and capital must be free to migrate to areas where returns are higher from areas where returns are lower for the economy to operate as efficiently as possible, including creating jobs. Lowering costs is a factor in businesses moving jobs overseas, but those funds then can be redirected toward new and emerging technologies.

However, these arguments might not extend to all segments of the technology labor market. When it comes to high-skilled jobs, several nagging questions arise.

Leading technology executives recently testified before Congress that improvements in the U.S. educational system,particularly in math and science,are necessary for the United States to maintain its technology dominance in the long run. That is certainly true, but what about the short run? Will the loss of high-skilled jobs hollow out America's base of technology expertise before these measures have an impact? If additional educational resources are put in place, will they be successful? And does the U.S. economy still have the capacity to create enough high-paying, high-skilled jobs to take the place of those being lost?

Until we know the answers, let the lower-skilled technology jobs go overseas, but keep the higher-skilled jobs here.

What's your opinion? Let me know via phone at (732) 919-1530 or e-mail at [email protected].