Globalization and Job Loss

Globalization is seen not just as an economic process, but as a process of the world becoming increasingly interconnected. There is an increase in the outsourcing of jobs overseas by competitors, which many feel is making it harder for companies, since they can now hire people from anywhere. Globalization has given the big multinational companies the freedom to scour the world looking for the cheapest labour in countries such as India and China (Delaney,2008). As I read more about this I realized that many people are living in fear for their jobs and even fear losing income. When companies realize it's cheaper to outsource jobs and pay individuals in other countries at a less salary they act without concern for human rights. With that fear consumers are less likely to spend because they are underemployed and if they are unemployed they have no money to spend. So with less to spend it reduces demand, which reduces prices, which leads to layoffs. This could be a major reason as to why those students graduating with degrees are desperately looking for jobs and in the mean time moving back in with parents.

Delaney, Joan. "Globalization: Future Job Loss a Problem." The Epoch USA, Inc. 2008. http://en.epochtimes.com/news/8-4-24/69681.html