U.S. corporations are reaping record profits, yet the joblessness rate remains stuck at almost 10 %. Major corporations are raking it in because of surging demand for their products overseas. Meanwhile, consumer demand in the U.S. is tepid. The increase demand for goods and services provided by U.S. companies is being met by a surge in overseas career creation. Post resource - U.S. companies reap record profits by creating jobs overseas by MoneyBlogNewz.
Career creation in overseas ends up being more than within the U.S.
Several U.S. companies are developing a lot of offshore careers. This is more than at home. According to the Economic Policy Institute, U.S. corporations developed less than 1 million jobs within the U.S. this year. Overseas were very different though. There were 1.4 million careers created. The unemployment rate would be down to 8.9 percent rather than being at the 9.8 percent it is now as reported at the end of November by the Labor Department, if all of those U.S. overseas jobs were created within the United States.
More international sales
Overseas jobs are growing because sales for U.S. multinational corporations are growing nearly twice as fast internationally as they are domestically. Both the Wall Street stalwarts UPS and Caterpillar Inc. are hiring more people offshore than at home as reported by the Associated Press. This year, over 50 percent of the 15,000 jobs Caterpillar crated were overseas. In the first three quarters of 2010, Caterpillar's sales grew enough that three new plants could possibly be built in China. There was a 16 percent growth within the company's U.S. sales.
Career creation needed to fix United States consumer demand
Jobs are being developed offshore as United States businesses sit on trillions of dollars in excess cash. Corporate executives say that cash can be invested in new jobs and equipment when United States demand warrants it. But United States customer demand is tied to the joblessness rate. The cycle is just hurt even worse since the workers in foreign countries tend to be better. The U.S. workers that are not as dependable are getting fired while United States companies are transitioning to globalization.