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alstry (34.88)

Will There Be Any Jobs Left In America?

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April 13, 2010 – Comments (6)

Large corporations are abandoning the US. I work for IBM. Here is a snapshot of IBM's US headcount:

2005 133,789
2006 127,000
2007 121,000
2008 115,000
2009 105,000
2010 98,000 estimate

These are all good paying jobs that can support a family and pay taxes.

Today, 75% of the total headcount is overseas. The overseas revenue is 65%. The company reported record profits last year. IBM decided to stop reporting their US headcount this year.

You know that many companies are moving their resources overseas. China is the new spot to build development centers. These incremental loses are adding up. But the saddest thing is that they are giving away the building blocks for innovation.

I just read a few weeks ago the Applied Material is planning to replace their US research center for a new one in China. That is another example of what is going on.

And no venture capitalist would attempt to build a solar panel factory from scratch in the US. The costs and the EPA will prevent that.

Please tell this story.

Sign me: Just Another Voice in The Dark

From Mish's Blog....

http://globaleconomicanalysis.blogspot.com/2010/04/mish-mailbag-ibm-abandons-us-workers.html

IBM has reduced its American workforce by almost 40% in the past five years.  Unemployment among architects is over 60%.  New home construction is down 80% in the past few years.  Commercial consturction has come to a grinding halt.  New car sales are down around 50%.

With fewer and fewer Americans working, tax receipts to government are evaporating.

YET GOVERNMENT WORKERS ARE GETTING RAISES???????

YOU HAVE BEEN WARNED....pretty soon, there will be so few Americans working at a living wage....that the system as we know it will collapse.

6 Comments – Post Your Own

#1) On April 13, 2010 at 7:59 AM, Tacomatight (69.14) wrote:

Will There Be Any Jobs Left In America?

 

-yes

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#2) On April 13, 2010 at 8:04 AM, alstry (34.88) wrote:

Yes...but not enough at high enough wages to prevent the current high costs high leveraged system from collapsing.....

It is the consequence of Zombulation and there is nothing you can do about it.......

We are now tearing down parts of twenty cities across America...expect this trend to increase rapidly as we move forward.

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#3) On April 13, 2010 at 9:09 AM, ayekappy (< 20) wrote:

At a major retailer I work at, a salesperson would have been hired at $9.50-$10.00 an hour in April 2008, $9.00 in September 2008, $9.00-$8.50 from September 2008 - September 2009, $8.50 from September 2009 - February 2010, now people are being hired at $8.00 an hour.  After already trimming down the store significantly, and beating last year's numbers in a lot of categories, there is still the fact that the best workers are not getting yearly raises.  The only people getting any money are the friends of the GM who are being hired in as managers.  We have a small store and have a GM + 4 assistant managers (technically 5).  So there are those managers that get paid 50k a year, and the GM who makes well over 100k a year, and then the rest of the employees, full-time or part-time, making $12 an hour if they were tenured, or as low as $8.00 an hour full-time.  Oh and full-time just guarantees 32 hours of scheduled hours and some basic benefits.

 

But yeah, the fact that my store has turned into an example of a caste-like system with no "middle class" (leads, supervisors, anyone between managers and salespeople/warehouse/cashiers) and that the average wage has dropped nearly 50% in the last 2 years is pretty worrisome. The GM added the new assistant manager position after the last of the supervisors left for another job because apparently corporate will pay ~$33k a year towards a manager instead of the store paying for 2 full supervisors.  So basically our GM decided instead of hiring from within the store 2 new supervisors making $25-$30k a year, you get a manager hired from OUTSIDE THE COMPANY, making $50-$60k a year and it's cheaper because corporate will front more than half his salary.  Too bad for any of the qualified internal employees that wanted to claw above the poverty level.

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#4) On April 13, 2010 at 11:21 AM, jason2713 (< 20) wrote:

And you wonder why anyone on the gov't dole will come off it kicking and screaming.

Yes there are people that actually need it, but if gov't is paying you about the same you would if you were working...guess what you'll choose?

The system is broken, period.

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#5) On April 13, 2010 at 12:00 PM, alstry (34.88) wrote:

The strange part is we have effectively wage deflation with price inflation for most things.

Most of our wealth is tied up in real estate and investments.  Practically all of our holdings are predicated on debt being able to be serviced.

As wages decline and prices rise, more and more debt will default or suck out all available cash flow.

This is Zombulation and a byproduct of only bailing out the banks and not the citizens.

Keep watching the ticker as one morning you will wake up and there will be very few jobs available in America.....at least in an America as we currently know it.

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#6) On April 13, 2010 at 9:05 PM, mymini2 (< 20) wrote:

I also worked for IBM until April 2009.  I worked for them for 10 years with high ratings. It was obvious that I was doomed when the internal jobs that were available were either for jobs in India or China earning their wages or were U.S. jobs that were being filled by an immigration specialist.  As a result of all of this, my wife is getting unemployment and WIA funding ($25k in training money) to become a nurse and I was certified as TAA (trade adjustment assistance) with huge amounts of benefits. What amazes me is that Sam Palmisano and stock holders win in the short run from this but the federal government and society as a whole pay my family in benefits as a result. So, all of YOU are paying the price for this. I took a job, but think about it- TAA = 80% off medical costs, relocation benefits, salary difference assistance, training and unemployment for multiple years...

More information on this can be seen on allianceibm.org or ibmemployee.com....

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