China trade costs jobs in every state [EPI]
Unbalanced U.S. trade with China since 2001 has had a devastating effect on U.S. workers. Between 2001 and 2007, 2.3 million jobs were lost or displaced, including 366,000 in 2007 alone (Scott 2008). These jobs were displaced by the growth of the U.S. trade deficit with China, which increased from $84 billion in 2001 to $262 billion in 2007.
Growing China trade deficits between 2001 and 2007 eliminated jobs in all 50 states and the District of Columbia. Jobs displacement exceeded 2.0% of total employment in Idaho, New Hampshire, South Carolina, Oregon, California, Minnesota, Vermont, Texas, and Wisconsin (see Map). The effects of growing trade deficits with China have been felt widely across the United States and no area has been exempt from their impact. While traditional manufacturing states such as Wisconsin, Tennessee, and the Carolinas were certainly hard hit, so too were states in the tech sector such as California, Texas, Oregon, and Minnesota. Rapidly growing imports of computers and electronic parts accounted for almost half of the $178 billion increase and eliminated 561,000 U.S. jobs. Idaho, which lost an estimated 9,000 jobs in computer and electronic products alone, was the hardest-hit state in the country in terms of share of total state employment.
This press release is based on a longer paper that is worth having a look at.
The China trade toll [EPI]
In addition to its finding of 2.3 million U.S. jobs lost and workers displaced between 2001 and 2007, this study finds:
* Because U.S. exports to China are much more commodity intensive (i.e., comprising products such as grains, steel scrap, and paper scrap) than Chinese imports (99% of which are manufactured products), average wages earned in jobs producing U.S. exports to China paid 4.4% less than the jobs displaced by imports from China. More than one-fourth of U.S. exports to China on a value basis were commodities.
* The 2.3 million jobs lost/workers displaced nationwide since 2001 are distributed among all 50 states and the District of Columbia, with the biggest losers, in numeric terms: California (325,800 jobs lost), Texas (202,900), New York (127,000), Illinois (102,800), Ohio (102,700), Florida (100,900), Pennsylvania (85,100), North Carolina (79,800), Michigan (79,500), and Georgia (73,600).
* In the past year alone, each of these states has also lost more than 10,000 jobs due to growing China trade deficits, including California (55,400 jobs), Texas (34,100), New York (21,300), Illinois (17,300), Ohio (17,000), Florida (17,000), Pennsylvania (12,400), North Carolina (12,400), Michigan (12,300), and Georgia (11,500). Many of these are among the hardest-hit states in the current labor market downturn.
* The hardest-hit states, as a share of total state employment, are Idaho (14,700, 2.59%), New Hampshire (15,700, 2.5o%), South Carolina (42,600, 2.34%), Oregon (36,800, 2.29%), California (325,800, 2.23%), Minnesota (58,700, 2.18%), Vermont (6,500, 2.15%), Texas (202,900, 2.13%), and Wisconsin (59,100, 2.10%).
* Rapidly growing imports of computers and electronic parts accounted for almost half of the $178 billion increase in the U.S. trade deficit with China between 2001 and 2007. The $68 billion deficit in advanced technology products with China in 2007 was responsible for more than 25% of the total U.S.-China trade deficit. The growth of this deficit eliminated 561,000 U.S. jobs in computer and electronic products in this period. Other hard-hit industrial sectors include apparel and accessories (153,000 jobs), miscellaneous manufactured goods (134,000), and fabricated metal products (102,000); several service sectors were also hard hit by indirect job losses, including administrative support services (139,000) and professional, scientific, and technical services (128,000).
* More than two-thirds of the jobs displaced by China trade deficits were in manufacturing, which tends to employ a higher-than-average share of workers with a high school degree or less (43.7% of workers displaced) and to provide those workers with good wages and benefits. More than half (55.6%) of the jobs displaced came from the top half of the U.S. wage distribution, and among this group a disproportionate share came from the top 10th of all U.S. wage earners. African Americans (230,000 jobs lost), Hispanics (339,000), and other ethnic groups (219,000) all suffered from the loss of jobs such as these that pay substantially more and offer better benefits than jobs in other industries.
So who are EPI: "The Economic Policy Institute is a nonprofit, nonpartisan think tank that seeks to broaden the public debate about strategies to achieve a prosperous and fair economy."
Politics is the US is as always never clear. It appears to me that both the left and the right (or right and slightly less right) all want to bash China whenever possible. Where are the reports on how much better off US consumers are from access to cheap Chinese imports thus leaving them with more money to spend on other goods such as food?
These reports are at best misleading and at worst simply wrong. From the articles above it is not possible to pin the blame on China. What about Mexico, India and other developing countries?