The Wall Street Journal’s David Wessel has an interesting piece about the hiring spree American companies are on—overseas.
U.S. multinational corporations, the big brand-name companies that employ a fifth of all American workers, have been hiring abroad while cutting back at home, sharpening the debate over globalization’s effect on the U.S. economy.
The companies cut their work forces in the U.S. by 2.9 million during the 2000s while increasing employment overseas by 2.4 million, new data from the U.S. Commerce Department show.
The piece is well worth reading and raises lots of policy questions. One missing element is research from the Kauffman Foundation, the Kansas City-based philanthropy and research organization. Kauffman researchers found that all new net job creation between 1980 and 2005 came from start-ups. In other words, as important as large, established firms are to the American economy, when it comes to jobs, we need to focus on new, entrepreneurial firms. That’s where we’ll get the job creation at home.