More than 40 states are destroying jobs by contracting out state-funded work to companies that ship the jobs overseas. According to a recent study by University of California-Berkeley, the United States could lose as many as 14 million white-collar jobs as a result of the new outsourcing trend, and workers fortunate enough to hold on to their jobs will see decreasing wages and benefits as companies try to keep pace with low-wage countries.
In New Jersey, Acting-Gov. Richard J. Codey (D) signed into law May 5 legislation that ensures taxpayers’ dollars are used to create jobs by requiring contractors who win state service contracts to do that work in the United States.
More than 31 state legislatures around the nation have introduced laws on the issue, most banning vendors from doing state work abroad. In Tennessee, the new law gives preference to firms that employ U.S. citizens or legal residents. In Illinois, the law requires bidders to disclose if they intend to do the work overseas, allowing state officials to use that information in deciding who gets the work.
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