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240,200 = Total job losses 41 months after start of recession, 3/2001–8/20041 140,500 = Job losses in manufacturing 41 months after start of recession 3/2001-8/20042 -184,600 = Actual job growth vs. growth projected by Bush administration, 6/2003–8/20043 124,300 = Jobs projected -60,000 = Actual job growth -312,000 = Jobs shortfall - Job growth compared to working-age population growth, 3/2001–8/20044 -5.2% = Job growth 1.6% = Working-age population growth 6.7% = Unemployment rate in August 2004 (4.6% = Unemployment rate in January 2001)5 424,530 = Jobs at risk of outsourcing in Michigan6 51,466 = Jobs lost to NAFTA 1993-2002 (Jobs gained minus jobs destroyed)7 $45,022 = Median inflation-adjusted household income in 2003, up $1,328 from 2002, down $1,790 from 2001 and $3,593 from 20008 Recent outsourcing events in Michigan Warren: General Motors, 260 workers, 2004-05 Greenville: Electrolux, 2,700 workers, 2004 Holland: Johnson Controls, 865 workers, 2004 Troy: Delphi Automotive, 150 workers, 2004 Hillsdale: Eagle-Picher Automotive, 54 workers, 2004 Marshall: Eaton Corporation, 85 workers, 2004 Political action Michigan Governor Jennifer M. Granholm (D) signed an executive order on March 22, 2004 that gives preference to Michigan-based job providers in the state government contracting process and requires the state to consider whether a bidder outsources abroad. The state also began collecting information on vendor offshoring. Foreign companies on state vendor list9 HTC Global Services Satyam Computer Services State contractors who subcontract work abroad Convansys Unisys Key articles “Runaway Companies,” CNN/Lou Dobbs Tonight, 9/17/04 Chris Knape, “Manila Calling: Please Pay Your Bill,” Grand Rapids Press, 9/4/04 Louis Aguilar, “Michigan Factories on Auction Block,” Detroit News, 8/16/04 Anne Bond Emrich, “State Considers Trying To Block Outsourcing,” Grand Rapids Business Journal, 8/9/04 Louis Aguilar, “Outsource Companies Seek Michigan Contracts; Study Reports Firms Are Aggressively Lobbying For Taxpayer-Funded Work In 30 States,” Detroit News, 7/28/04 Louis Aguilar, “State May Stop Outsourcing: Lawmakers Consider Bills To Limit Michigan Contracts Only To U.S. Workers, Despite Cost,” Detroit News, 7/6/04 Mary Conway, “Outsourcing and its Impact on Michigan,” WXYZ.com, 7/27/04 “Kelly Services In Expansion Mode,” Financial Express, 7/6/04 Andrew Dietderich, “Deciding to Stay Home; Compuware's Chief Sees Outsourcing as an Incentive,” Crain's Detroit Business, 6/7/04 “Study: Outsourcing Will Cost Michigan 46,000 Jobs,” Holland Sentinel, 6/6/04 “Three Governors on Offshoring,” CNN/Lou Dobbs Tonight (Excerpt), 4/27/04 “Overseas Jobs Included In Some State Contracts,” Detroit Free Press, 4/26/04 James Prichard, “Johnson Controls To Lay Off 1,065 Workers In Michigan, Kentucky,” Associated Press, 3/30/04 “Report: GM Increasing Outsourcing Of White-Collar Work To Cut Costs,” Associated Press, 3/23/04 Kim Norris, “Michigan Firms Make More Money but Create Fewer Jobs,” Detroit Free Press, 3/29/04 Bree Fowler, “Granholm Signs Directives To Discourage Outsourcing,” Associated Press, 3/22/04 “Democrats Say Bush Speeding U.S. Job Exports,” Reuters, 3/20/04 Amy F. Bailey, “House Democrats to Lay Out Plans to Prevent Outsourcing,” Associated Press, 3/7/04 Jeffrey McCracken and Jamie Butters, “Delphi Set to Trim 150 Tech Jobs; Troy Auto-Parts Firm to Ship Some Work to India,” Detroit Free Press, 2/26/04 Jeffrey McCracken, “GM Has Cut One-Third of Contract Workers; Staff on Edge As Some Jobs Move to India,” Detroit Free Press, 2/19/04 Dale Buss, “Job Flight Stirs Fight to Keep Work in U.S.; Michigan Tech Firms Say Overseas Workers Improve Competitiveness,” Detroit News, 1/18/04 Francis X. Donnelly, and Charles E. Ramirez, “Michigan Loses as Tech Jobs Slip Overseas; Trend Hurts Region’s ‘Automation Alley’ Efforts,” Detroit News, 8/10/03 1Economic Policy Institute (EPI), “JobWatch – State Data,” 9/17/04. 2Bureau of Labor Statistics. 3EPI, “JobWatch – State Data.” 4EPI, “JobWatch – State Data.” 5Bureau of Labor Statistics. 6This figure reflects jobs that could move offshore because of occupational attributes, not those that will actually move (which will most likely be far fewer). It is derived from 2003 BLS data analyzed by Dr. Cynthia Kroll, Senior Regional Economist, Fisher Center of Real Estate, University of California-Berkeley. 7Robert Scott, “The High Price of ‘Free’ Trade; NAFTA’s Failure has Cost the United States Across the Nation,” Economic Policy Institute, 11/17/03. 8U.S. Census Bureau, “Historical Income Tables — Median Household Income by State 1984 to 2004” 9Philip Mattera, “Your Tax Dollars at Work … Offshore: How Foreign Outsourcing Firms are Capturing State Government Contracts,” [Acrobat 38K] WashTech/Good Jobs First, July 2004 Learn about outsourcing in other states