Globalization is not just detrimental to the poor and third-world countries, but the working class of developed countries like United States is also the victim of neoliberal globalization. For example, the large manufacturing giants of America have drastically cut down their domestic jobs and have instead hired cheaper labour in other countries.
From 2001 to 2009, American workforce tumbled by 2.9 million people. Over fifty four thousand factories were shut down during the similar period as the companies moved their manufacturing facilities abroad. This phenomenon doesn’t only force the technical workforce to work underemployed in the service sector but also has far-reaching impact on the GDP and tax income of the economy.
Still 14 million domestic white-collar jobs in United States are vulnerable of being outsourced to other countries. The susceptible jobs are from diversified sectors such as IT, accounting, architecture, and stock analyses, and media, medical and legal services. All these sectors generate bulk of tax revenues that fund health, infrastructure and social security systems.
According to Department of Labour, one out of three laid off employees remain unemployed and become burden on the economy in terms of being liable of receiving unemployment benefit from the state.
By moving its manufacturing operations abroad, the developed countries are also transferring their technology which easily gets captured while these countries reduce themselves to just a brand name.
Due to low wages, poor working conditions and lack of opportunities in the developing nations, immense migration to developed nations take place year on year. For example, since 1990, over 41 million legal immigrants and 13 million illegal immigrants entered United States. Besides, around eighty thousand guest workers also arrived0 each year.
Massive immigration not only creates cultural issues in the foreign country but also creates saturation in the job market. While globalization is moving jobs from rich to poor countries, it is attracting employees from poor to rich countries in search of better standard of living and wider range of opportunities. This is not a good omen for the developed nations as millions of immigrant workers who are willing to work for relatively less pay than the domestic workers shed the wages and quality of life of domestic workers. This also implies that the domestic workers who have done those jobs for decades are now laid off for cheaper foreign workers – both in the home country and abroad. This creates double whammy for the working class of developed nations.
The government of some of the developed nations is also supporting the companies to hire cheap labour from third world countries. For example, The HIB and H2-B visa programs created by Republican and Democrat government in the United States respectively provide 66,000 and 264,000 visas each fiscal year to the companies each year to hire cheap immigrant workers.