5 States Which Have Lost the Most Jobs to China

The last 4 years have truly been some of the worst in the economic history of the United States. Everyday you read or hear a story about who’s to blame; democrats, republicans, Obama, Bush, the banks, the rich… the list is endless. With an unemployment rate of over 9.1% (it’s highest was 9.9% in 2010), Americans are fighting a battle for every job they can find… anywhere. But the question remains, where have these previous jobs gone? Downsizing and cost cutting in major companies and government agencies have obviously been two of the largest reasons for this massive job loss… but where are these jobs now and who has gotten hit the most?

Over the past decade, American imports from China have grown much more than what the country has been able to export into it, causing a massive loss of jobs. Between 2001 and 2010, the trade deficit with China eliminated or displaced 2.8 million jobs. As would be expected, 1.9 million of those jobs were in manufacturing. The greatest damage occurred in the computer and electronic parts industry, apparel and motor vehicles.

China was able to achieve manufacturing cost advantage by moving millions of laborers from rural areas to cities with newly built facilities. Even American companies such as Walmart cannot afford to buy goods made in the U.S. when they are made so much more efficiently (and of course, so much cheaper) abroad.

An analysis conducted by 24/7 Wall St. has some interesting numbers concerning what states are being affected the most, which industry is targeted, and how many jobs have been lost. The top 5 states are discussed below.

Sunny Florida?

#5  Florida

Net job change: -114,400 
Jobs lost: 134,500 
Jobs gained: 20,100 Florida is not normally considered to be a major manufacturing state, yet it does excel in some areas, such as medical device manufacturing. The state has lost almost 115,000 jobs to China from 2001 to 2010. Governor Rick Scott has been a supporter of business relations with China, but other local politicians have not been as hospitable. In 2007, Mayor John Mazziotti of Palm Bay proposed a ban on items made in China, stating that the city was “losing jobs left and right to them.”

Not even Oprah can help!

#4  Illinois

Net job change: -118,200 
Jobs lost: 139,400 
Jobs gained: 21,200 Illinois is another traditional manufacturing power that has lost a significant number of jobs to China. Robert Scott, director of manufacturing and trade policy research for EPI, told Illinois WJBC radio station that “In Illinois you also have a large number of firms involved in industries like auto parts production and fabricated metal products, and those are industries that were hurt by the growth of imports from China.” China also exports lots of electronics and specialty steel — industries that were once major sectors in Illinois.

Start spreading the news...

#3  New York

Net job change: -161,400 
Jobs lost: 183,300 
Jobs gained: 21,900 “New York has lost 140,000 predominantly middle-wage manufacturing jobs in recent years as a result of China’s unfair labor practices,” said James Parrott, deputy director and chief economist at the New York-based Fiscal Policy Institute in the Times Union. New York Senator Chuck Schumer has made efforts to encourage China to further appreciate its currency.

Lone Star State indeed...

#2  Texas

Net job change: -232,800 
Jobs lost: 269,300 
Jobs gained: 36,400 Texas has suffered greatly from the trade deficit with China due, largely, to the prominence of the computer and electronic parts industry in the state. Four of the top 20 congressional districts that lost the most jobs in the country are located in the state. Many Chinese companies have close ties with Texas. Two companies, Huawei and ZTE, have set up their U.S. headquarters in the state. Oil company CNOOC (NYSE: CEO) has also bought an exceptionally large amount of mineral rights in the state in order to extract shale oil.

The Govenator was not effective here.

#1  California

Net job change: -454,600 
Jobs lost: 519,000 
Jobs gained: 64,300 California has lost almost half a million jobs to China, according to EPI. Like Texas, many of these were lost in the computer and electronic parts industry. Additionally, eight of the nation’s 20 hardest hit districts are in the state. Governor Jerry Brown has proposed ways to win back jobs from China outside of the computer sector, such as green technology. In his race for governorship, Brown said that he would create thousands of clean-energy jobs, “reclaiming from China leadership of the clean-tech economy.”

At the end of the day, the United States needs to get manufacturing back to the mainland, but we as a nation need to educate ourselves on how to live BELOW our means not above them.

As my father would say, “It’s not what you make, it’s what you spend.”

For the complete Top 10 Affected State, check out 24/7 Wall St.