Why are employers contributing to the unemployment rate in the US by outsourcing?

Answer 1

Greed. And did you know there is a governmental office, funded by your tax dollars, that assists corporations interested in moving their factories to China. Amazing!

Answer 2

Mostly greed. They want more and more profits.

But there are some exceptions. For example if you have a factory making something and all other makers of this something already have a factory in a cheap country, then you have little choice, but to build one yourself (or outsource the work) or you'll go out of business.

Another reason can be that there's some kind of work in an office that nobody likes to do. They can send just that part of the work to some cheap place and make somebody else do it for pennies. This way the people back at the original office may seem more happy.

Yet another reason can be that the work you outsource is just plain dangerous (or heavily polluting). It's much easier to send it to a place where nobody cares if you're killing the birds, fish in the river, or poisoning your workers, than to make changes at home.

Somehow all the reasons go back to greed.

Answer 3

Because they can make more profit if they use cheap labor