U.S. not alone in losing jobs to Asian countries
Thomas Russell, Associate Editor -- Furniture Today, March 27, 2005
For years, economic developers and workers in and outside North Carolina have lamented the decline in manufacturing jobs, furniture and textile jobs in particular. Many of these jobs have shifted to China and other Asian countries, which make products at far less cost than we can here. That's obviously a good thing for retailers and consumers. But it's little consolation to officials whose job is to recruit — not lose — job-creating businesses.
They should know the United States is not alone in this predicament. While reporting on trade shows in Asia, I spoke to Philip Liu, editor of Taiwan-based China Economic News Services, which publishes trade publications similar to Furniture/Today. In Taiwan, furniture manufacturing also has declined, particularly on the wood side. And, like U.S. manufacturers, the Taiwanese have themselves to blame, at least in part, for shifting many jobs to China.
But there are some important lessons to be learned in how Taiwan has survived the transition. For one, Taiwan's unemployment rate is only about 4.3%, which is remarkable when you consider that furniture manufacturing was once a stalwart of its economy. The jobs now are more prevalent in electronics and high-tech manufacturing, a sector that clearly benefits from exporting those goods to the United States.
Secondly, there are still furniture manufacturers in Taiwan. Production and jobs have shifted to metal and glass dining, occasional and office products, a thriving niche business. Many of these manufacturers are smaller than those that once specialized in wood bedroom and dining room. But they are employing some of the displaced workers.
Other industry jobs lie in design and distribution, a familiar echo of how the U.S. furniture business has changed.
Taiwan still faces many challenges, particularly the displacement of older workers. The relatively low unemployment rate could be due to the fact that many older workers are not registered by the unemployment system, Liu said. They may have quit looking for work and/or returned to live with families in rural areas. While some get jobs in furniture making, others go into lower-paying service jobs. Some get jobs in electronics, but Liu said younger workers take most of those jobs.
Fortunately, Taiwan has a system similar to Social Security that helps support older people. But for those who want manufacturing jobs, the opportunities are somewhat limited, he said.
This perspective should be heartening to U.S. industries like textiles and furniture, which have lost tens of thousands of jobs. Not only are we facing some of the same challenges as Taiwan, we also have the same opportunities to adapt and grow, even in the face of China's low-cost labor.
We could learn something from Taiwan and other countries as we seek to capitalize on those opportunities.
Contact Thomas Russell at trussell@reedbusiness.com
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U.S. not alone in losing jobs to Asian countries
Mar 29, 2005
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