Does globalization cause unemployment in developed nations?
One of the main criticisms leveled against globalization is that it causes unemployment. Plants close in the U.S. and move to Mexico or Asia. Imports destroy local industries such as textiles, apparel, and shoe production. However, while it is true that certain communities within the U.S. are deeply affected by these events, the country as a whole is not. The unemployment data for the last half of the decade of the 1990s shows that the U.S. economy reached full employment, with the unemployment rate falling below 4 percent towards the end of the decade (at this low rate unemployment is basically voluntary). This is because in a growing economy other sectors and industries can employ a significant portion of the workers who lose their jobs because of trade. Furthermore studies show that while globalization can cause some unemployment, by far the greatest impact on unemployment comes from technological change. Less skilled workers are not easily employable in high-tech jobs. As a result
