IT’S PRODUCTIVITY, STUPID

Dan Drezner notices an important point in a Businessweek piece about low job growth:

No one doubts that [outsourcing] is having an impact — though exactly how strong is hard to say since good numbers are unavailable. While some put the number higher, Forrester Research Inc. estimates that of the 2.7 million jobs lost in the last three years, only 300,000 have been from outsourcing.

And that’s the high end of most estimates. The truth is that techno-driven productivity gains have now spread from manufacturing to service industries.