Latest Data Show Continuing Strong Services Job Growth: Insourcing a Major Factor in Growth
(Washington, DC) US employment data for May released today by the Bureau of Labor Statistics (BLS) show that US companies continue to add new jobs by providing business services to foreign companies and consumers (insourcing). Todays BLS data underscore the increasing importance of insourcing in the creation of thousands of new well-paid American jobs, said CSI President Bob Vastine.
PR9.NET June 07, 2004 - According to these data, 176,000 of the 248,000 new jobs created in May were in services. Employment in professional and business services (a key insourcing sector that includes legal, consulting, engineering, and other commercial services) grew by 64,000 new jobs over the month.
At the same time, the BLS revised data for April showing that overall US employment increased by 346,000 jobs, 294,000 of which were in services, and 130,000 of those in professional and business services.
Overall this year, services employment has increased by 824,000 jobs, including 259,000 in professional and business services.
US exports (insourcing) of professional, and business and technical services were $131 billion in 2003, $54 billion greater than US imports of such services. Growth in insourcing has helped offset continued US losses in travel and tourism accounts. US services trade was $60 billion in surplus last year.
US services exports create additional well-paid, high-skilled jobs in the US. In 2002, average annual incomes in professional, scientific and technical services were about $73,000.
Since outsourced services are used as inputs for US exports, any restrictions on outsourcing would hurt US companies global competitiveness, Vastine said. Outsourcing gives US companies a valuable competitive advantage, helping them sustain their excellent export record, and to operate successfully in foreign markets.
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CSI is the leading business organization dedicated to reducing barriers to U.S. services exports and mobilizing support for domestic U.S. policies, including tax policies, which enhance the global competitiveness of its members. CSI was formed in 1982 to ensure that U.S. trade in services would become a central goal of U.S. trade policy and trade negotiations. It played a major role in the General Agreement on Trade in Services (GATS) and in the advocacy effort leading to the 1997 World Trade Organization (WTO) Basic Telecommunications and Financial Services Agreements. CSI's knowledge of the process of services trade negotiations, its ties to the WTO and its network of relationships with governments and industry in other countries are unmatched.
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