The U.S. Presidential Election 2016
We’re now on the other side of the U.S. Presidential Election 2016, with President Elect Trump already causing waves around the globe. In the days following the election, there have been many speculations about the Trump presidency and what that is going to mean for business and particularly globalization.
It’s no secret that the rest of the world appears to be very cautious, to put it lightly in relation to what Trump stands for when it comes to outsourcing and jobs. Countries are afraid that Trump will stop the outsourcing of jobs to other parts of the world and as a result, they feel it’s going to affect their business. We’ve heard this from our internal and external networks, regional global directors, clients and partners and on social media. Looking at the outsourcing that has occurred, 100% of these jobs cannot be repatriated, but the mass exodus should slow.
The Global Workforce & Offshoring
Trump has repeatedly pledged to reduce taxes in an effort to spur economic growth. Trump seeks to streamline the seven existing tax brackets by consolidating them into three. All businesses, regardless of size, would enjoy a flat tax rate of 15 percent. He believes this will incentivize companies to operate in the United States primarily, bringing their offshored work back into the country.
Trump has also vowed to increase domestic manufacturing, curtail incentives for companies to move operations overseas and extend tax breaks for business owners. In his presidential campaign one of his strategies was to negotiate fair trade deals, with view to limiting offshoring and produce more jobs in-country.
Whilst trump did not issue a statement on the gig economy, he did promise, if elected, to be “the greatest job producing president” of all time.
The ever troubled H1B Visa will also come under further review by the new Trump administration. H1B Visa’s bring talented workers to the USA and was adopted to bridge the talent needs in emerging sectors. Hiring foreign workers with same or comparable skills as replacements to simply lower pay rates was not why H1B’s were instituted and approved. H1B Visa’s have been abused in the past with workers “benched” when there was no work and time has come for an overhaul
Selectively some companies will pony up and bring some of their jobs back in to the U.S., but where it’s really going to impact on globalization, is the rampant outflow.
As mentioned by Obama in today’s press interview, the majority of the American people believe in trade, but are concerned about the trade being fair.
The Future of Work
We are mindful about the outflow of jobs slowing, but there is still a need for outsourcing. People are talking about their concern in relation to globalization and bringing jobs back to the U.S.
Being a global company, with offices in the U.S., CXC Global are hopeful that while it may create more opportunities to America’s ever-growing contingent workforce, it won’t have too great a negative impact on global business and trade.
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