If you’re a white-collar professional and your job has been sent to India or China, what are your prospects today?
Not all that good. A recent study by McKinsey Global Institute found that only 36% of Americans displaced in the past two decades found jobs at the same or higher pay. The pay of one of every four displaced professionals fell by 30% or more. With offshoring increasing dramatically, those numbers will likely worsen.
In fact, a recent study by researchers at the University of California at Berkeley suggested one scenario in which displaced high-tech workers could find themselves entering a prolonged period of unemployment before being absorbed in service jobs that significant cuts in pay.
There’s a terrific story on “The Rise of India” on the cover of this week’s Business Week, which takes a more positive view of the trend and what it means for America.