Time to pop the champagne? The return of manufacturing jobs from China to the US could generate as many as three million new jobs in the US by 2020, according to a new study by the well-regarded Boston Consulting Group. As a result of rising labor costs in China, manufacturing jobs are coming back to the US. The FT has the story:
Rising Chinese labour costs are changing the economics of global manufacturing and could contribute to the creation of 3m jobs in the US by 2020, according to a study being released on Friday.The Boston Consulting Group analysis says the new jobs will be generated by a “re-shoring” of manufacturing activity lost to China over the past decade…The Boston Consulting Group estimates that the trend could cut the US’s merchandise trade deficit with the rest of the world, excluding oil, from $360bn in 2010 to about $260bn by the end of the decade. The shift would also reduce its soaring deficit with China, which reached $273bn in 2010 and has triggered an intense political controversy over China’s exchange rate policies.
Millions of manufacturing jobs coming home from China? The future just keeps looking better all the time.