Tag Archives: job growth

Chinese Companies Bringing Jobs to USA

Economy, ,

In an unexpected flip, more Chinese companies are coming in larger numbers to the US and creating job opportunities here at home. This changing trend comes after decades of job loss for Americans due to the opening of factories and other manufacturing plants in China instead of in the US.

Last year, for example, Chinese companies invested $14 billion in the US, a record. All together these companies employ over 70,000 Americans. That is an increase from practically zero only ten years ago.

Several strong forces are creating this trend, including shrinking wage differences, lowered US energy costs, and disparities in currency markets. Chinese investors are being wooed by mayors and economic development personnel. States in the southern section of the US have been working doubly hard to attract business: offering low labor and land costs. Tax breaks and Southern hospitality have also played their roles.

‘‘Get off the plane and the mayor is waiting for you,’’ says Hong Kong billionaire Ronnie Chan.

Texas Boasts Best Job Growth in Country

Economy, ,

Since Rick Perry took over the governorship of Texas in December of 2000, the state added 1.2 million net jobs. Quite impressive considering during the same time period the country as a whole lost 1.1 million jobs.

Perry Pursues Presidency

The remarkable job increase is due to a 40% increase in health service and education jobs over the past ten years, plus a 67% surge in the number of mining jobs, including the flourishing oil industry. Perry’s success looks good on his resume as he competes for the nomination of the Republican Party to be the GOP’s candidate for president, but it is not clear if the great record on the state level can be easily translated into success on the federal level.

Next Five Years Looking Good

Texas is the front runner of states that will add the most jobs during the coming five years, on a percentage basis. According to research done by Moody’s Analytics, total employment is predicted to grow by 2.9% each year until 2015. In other words, over the next five years there will be about 1.6 million new jobs in Texas.

Texas is Special

So what’s so special about Texas? For one thing, the state offers businesses low taxes, a friendly business atmosphere, and an almost unlimited supply of youthful workers. Texas ranks number six in the Forbes list of Best States for Business and Careers. The state is also not afraid to use aggressive tactics to try and persuade new businesses to relocate so they can enjoy the great benefits that business receives there.

Persuasion

When Washington was considering raising taxes last year for the state’s top earners, Governor Perry sent a letter to 90 companies headquartered there, including Amazon.com, Microsoft and Starbucks, trying to persuade them to move to Texas.

Perry’s letter stated in part:

“As the State of Washington considers a multibillion-dollar tax increase for citizens and businesses … I invite you to consider your future in America’s new land of opportunity: the State of Texas. If Washington doesn’t want your business, Texas does. Texas has no personal income tax and no interest in getting one.”