Uncompetitive US loses jobs overseas

A recently published study by Harvard Business School suggests that, over the coming three years, the United States is expected to become less competitive globally. The research examined 10,000 alumni, and found that many of those were reluctant to keep facilities and jobs inside America. The report stated that structural changes which began before the recession were resulting in the US facing a deepening competitiveness problem.

Around 1,700 of the respondents were in positions where they are responsible for making decisions about whether to put jobs or business in America, or send them abroad. According to the report, two-thirds of those decisions did not favour the US.

The country’s economy remains in a strong position, but researchers found that many considered that it was not keeping up with others, especially the economies of the emerging markets. The report said that employers who were offering a large number of jobs, multiple activities, and high end work were moving away from the US at a higher rate than they were moving in.

Among America’s weaknesses are regulations, its legal framework, macroeconomic policies, workforce skills, infrastructure, education system, tax code and political system. Just over 70 per cent of those who took part in the study said that they expected the US to be less competitive by the middle of the decade.

The report concludes that a weakened US economy is not just a problem for America, but for the rest of the world as well. Global growth is expected to slow down if the country begins to struggle as there will be less innovation.