So says the Economic Policy Institute in an updated study. Over the last decade, from 2001 to 2011, the United States has lost a whopping 2.7 million jobs to China alone and this estimate is conservative. The China PNTR trade agreement was signed by President Clinton on October 10th, 2000 and China entered the WTO in 2001.
The more than 2.7 million jobs lost or displaced in all sectors include 662,100 jobs from 2008 to 2011 alone—even though imports from China and the rest of the world plunged in 2009.
Below is EPI's map showing China unfair trade's job losses as a percentage of total state employment. These are not just a few minor localized pockets of jobs. We're talking significant payroll percentages per state being lost just due to China trade.
California alone lost 474,700 jobs due to trade with China. Considering the job slaughter and devastation, employment is the #1 crisis in America right now, it's astounding China trade isn't the top issue of Election 2012. Below is EPI's yearly tally of job losses directly attributable to the China trade deficit.
Guess which industries were hit worse? The computer and electronics industry, yes those same jobs of tomorrow touted in the 1990's. Have you ever seen any electronics these days manufactured in the United States? No and situation is so bad, if one tries to manufacture electronics or computers in the U.S., one has a really tough time obtaining the needed components and supplies for products. To get even a basic LCD component entails months of delay and that is because those components are manufactured in, you guessed it, China. This is called clustering and for the United States we might rename it clusterf*@k.
Among specific industries, the trade deficit in the computer and electronic products industry grew the most, and 1,064,800 jobs were displaced, 38.8 percent of the 2001–2011 total.
Those of you in Silicon valley who witnessed the Grapes of Wrath U-haul wagon trains leaving town as the area shed 50% of the tech jobs weren't imagining things. In addition to the dot con bubble burst, there was a mass exodus of jobs to China. Overnight thousands of office parks turned into ghost towns, complete with blowing tumbleweeds in the parking lots. In fact, Silicon Valley's biggest export today is still jobs.
The three hardest-hit congressional districts were all located in Silicon Valley in California, including the 15th (Santa Clara County , which lost 44,700 jobs, equal to 13.77 percent of all jobs in the district), the 14th (Palo Alto and nearby cities, 32,700 jobs, 10.20 percent), and the 16th (San Jose and other parts of Santa Clara County , 29,000 jobs, 9.55 percent).
Manufacturing lost 76.9% of the total jobs lost by trade with China. Durable goods' lost jobs were 56.9% of that percentage and the above computer and electronics manufacturing jobs were in turn 38.8% of that durable goods job loss tally.
It is not just jobs that China has cost us. Wages also are repressed. The report sites a $1400 wage hit per individual annually attributable to the China trade deficit.
The report puts China's currency manipulation front and center as the main culprit of U.S. lost jobs.
New research by Joe Gagnon (2012, 3) estimates that massive currency manipulation, especially by countries in Asia, has raised “ the current account of the developing economies by roughly $700 billion [per year], relative to what it would have been. ” Gagnon also notes that this “ amount is roughly equivalent to the large output gaps in the United States and euro area. In other words, millions more Americans and Europeans would be employed if other countries did not manipulate their currencies…”(Gagnon 2012, 1).
There is much more to the report and we recommend you read it in full. The Alliance for American Manufacturing has put together an interactive map on the job losses from China. You can click on each state and then see Congressional districts as well with associated statistics.