There are many reasons the U.S. manufacturing sector has been in decline. In GM’s case, the cuts reflect the long slide in the company’s sales and market share. Job automation and competition from countries with lower wage rates contribute to the general problem. And economists such as Morici also cite the low valuation of China’s currency, which makes it much cheaper to produce goods in China than in the U.S. “Manufacturing, including the auto sector, has been clobbered by China’s [monetary] policy,” says Morici, who is critical of President Barack Obama’s policy toward that country. “The U.S. is appeasing, not challenging China.”
Tig Gilliam, CEO of the North American group of temporary-help giant Adecco (ADEN.VX), disputes the notion that just because the service sector is doing better than manufacturing, growth will come only in low-wage jobs. “Some of the strongest industries for job growth are bookkeeping, finance, health care, and education,” he says. “They’re not all graduate-degree jobs, but they’re well-paying jobs.”
Jobs: Even Less Are ‘Made In America’ – Moira Herbst, Business Week
