Trends in Labor in the United States Assignment Example | Topics and Well Written Essays - 500 words

Trends in Labor in the United States - Assignment Example Ltd., 2013). Another factor that contributes to the growth of outsourcing is the availability of cheaper labor offered by some countries, without sacrificing the quality of the products or services (Flatworld Solutions Pvt. Ltd., 2013). Aside from work expertise and cheap cost of labor that a company can gain from outsourcing, their resources can be focused on the more essential aspects of their business. Outsourcing presents several advantages and disadvantages for both corporations and the domestic economy. Some of the advantages of outsourcing are the swiftness and expertise of the outsourced labor, the concentration on the crucial business processes rather on the minor ones, the risk sharing between the outsourced vendor and the organization outsourcing and the reduction in the operational and recruitment costs (Flatworld Solutions Pvt. Ltd., 2013). Outsourcing has its drawbacks too. These include the risk of exposing the organization’s confidential information, lack of control with schedules and delivery times, possible hidden costs and a lack of concern for the customers’ needs (Flatworld Solutions Pvt. Ltd., 2013). A significant effect of outsourcing on the US labor market is the rise in the unemployment rate among Americans. The technological and engineering jobs are mostly diverted to India and China which offers lower wage rates but matched with superior talent (Miah, 2007). The bottom line for most companies is that outsourcing gives better profits. Nationalism is put aside because the business decision makers consider their responsibility to their shareholders the priority (Miah, 2007). The result of this attitude is the American working middle class are up in arms against outsourcing (Miah, 2007). Another major effect of outsourcing on the US labor market is the weakening of the workers’ bargaining power. Since it is very easy for