US manufacturing jobs have moved to developing countries due to lower labor costs, causing a decline in employment in the US. Outsourcing and automation play significant roles in the transformation of the American manufacturing sector.
Since the 1980s, many manufacturing companies moved their plants from US cities to sites in developing countries due to lower labor costs, such as Mexico or China. This phenomenon, known as capital flight, has contributed to a loss of approximately 5.5 million manufacturing jobs in the United States since 2000.
Outsourcing of manufacturing and service-industry jobs to developing countries has led to increased unemployment in developed countries, including the US. This shift has been influenced by factors such as lower labor costs abroad, stringent US environmental regulations, and the impact of lower foreign energy costs.
The decline in American manufacturing jobs has been driven by the globalization of the economy, automation of jobs, and the outsourcing of low-tech industries to countries with lower production costs. However, American manufacturing is now focusing more on high-tech industries and component production.
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