Is outsourcing raising the unemployment rate?

Answer 1

In the case of the United States, yes it does. It also contributes to the crisis by allowing the loss of capital, and if the government does not do anything about that, it ultimately could contribute to the downfall of the United States as a worldwide capital power. This should serve as an example to the world, that in order to grow as a country the country needs to use the manpower resources first inside their country. Unfortunately some unscrupulous big American anti-American companies work against the United States by sending the jobs overseas cheating the United States of the money that would have been otherwise recycled into the economy, just so couple of people on top get to sell their products cheaper and beat the competitors. Reality check, if they continue to do so, there would not be more buyers in the US and they will eventually destroy their own market. There should be more rules and regulations in the US regarding outsourcing. I bet there are plenty of people outside the US that will not like what I'm saying here. Just my opinion.

Another opinion:

Yes, if the company is outsourcing to a place away from the business' location, (i.e. overseas, another state, etc.) then it would cause loss of jobs for the workers employed in the area outsourced from.

Answer 2

Outsourcing can lead to job losses in certain sectors as companies move operations overseas to take advantage of lower costs. This can contribute to short-term unemployment in those industries. However, it can also create new job opportunities in other sectors as companies expand and grow, leading to a more complex impact on the overall unemployment rate.