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fourth
  The Newest Threat to Our Jobs:
Multitasking Celebrities

 
 
 

The U.S. economy has been hitting some bumps, and jobs still seem scarce. Workers in many industries are nervous that they may be out of work soon, thanks to cheaper labor overseas. But some economists argue that offshoring is part of free trade, and the money saved will be reinvested in new job-creating businesses at home. Here's a look at what's new in the jobs debate from around the Web. (Some links may require registration or subscriptions.)

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CELEBRITY THREAT: The Los Angeles Times' Joel Stein says it's silly for Americans to worry about outsourcing to India and China when a much larger threat to our livelihoods looms in our own country: celebrities. Mr. Stein lost his column-writing gig at Entertainment Weekly to Stephen King two years ago. "You think it would be gratifying enough just to be famous. But celebrities are encroaching on every field available," Mr. Stein gripes, pointing out such ventures as clothing and perfume lines, interior decorating and even the ministry. Still, he does admit, "I would totally eat at a restaurant where Adam Sandler cooked my dinner. I'd allow Bruce Springsteen to perform minor surgery on me."

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MASS HYSTERIA: Last year, we noted the trend of "religious outsourcing" amid reports of Western priests farming out surplus prayers to India. (One example: a mass to end the marriage strife of British soccer star David Beckham and his wife.) The Chicago Tribune's Kim Barker took a trip to Kerala, India, to write about the trend. "There was only one problem: I couldn't find the 'trend' anywhere. This is the story of the story that wasn't. When I arrived, most priests and bishops were defensive, saying religious outsourcing did not exist." After an unsuccessful effort to track down the mass intentions that were reported, Ms. Barker concludes, "Either everyone was lying, or the stories were wrong."

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SHUTTING DOWN: When the Pentagon announced the nation's first military base restructuring in 10 years last week, the news was met by vows from many of the towns affected to fight the long fight. While some installations would grow, the cumulative nationwide effect of the closings would mean the loss of 26,187 jobs, not to mention the affect on small businesses for whom the bases make up the majority of the clientele. Hardest hit will be communities like Kittery, Maine; Rapid City, S.D.; and Clovis, N.M. Lisa Manwaring has close ties to the naval base in Groton, Conn., one of the facilities on the list of proposed closings. She and her husband bought a house near the base a year ago, but now are unsure if they'll stay. Nearly 8,600 jobs are at risk there. "It's going to be a ghost town," she says. Meanwhile, in Washington state, political leaders took a victory lap to celebrate the possible addition of 760 jobs related to the Pentagon's planned realignment of resources.

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SOLID STATE: The Mexican town of Hunucmá, located on the Yucatan Peninsula, supplies labor for dozens of factories, many of them operated by U.S. companies drawn to the low wages and convenient shipping routes. A banner outside the OshKosh B'Gosh clothing factory in the town reads, "Production and attendance bonuses. Subsidized meals. Free transportation. Air-conditioned plant. Hiring immediately!" The Arizona Republic reports that the town of 26,000 has one of the lowest emigration rates in Mexico as a result of the number of jobs available, most as a direct result of maquiladoras, or assembly plants for exported goods.

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RECONSIDERED: By 2015, the U.S. could recapture a large amount of outsourced projects, according to the authors of "The Black Book of Outsourcing." Douglas Brown and Scott Wilson say many executives are reconsidering offshoring because of the high price of fuel and airfare, management challenges and customer complaints.

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LIBERAL DEGREE: An estimated 1.2 million students in the U.S. will earn bachelor's degrees this spring, and about 600,000 more will get associate's degrees, according to the U.S. Education Department. Those graduating with accounting degrees will likely look for accounting jobs, but for most liberal arts majors, the diplomas they have earned aren't as easily pegged to careers. Nonetheless, Nazareth College career advisor Michael D. Kahl says such graduates "are very employable because most of the employers don't care what the degree was; they care what the skills you have are." Meanwhile, employers are expected to hire 13% more new college graduates this year than they did in 2004. Meanwhile, a study by the Federal Reserve Bank of Dallas confirms you earn what you learn. While high school graduates can expect to earn an average of $1.5 million over 40 years of employment, those with bachelor's degrees earn $2.6 million, and the figure jumps to $3 million with a master's degree.

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REALITY BITES: Donald Trump will hire another "Apprentice" later this week, when the NBC reality show concludes its third season. Winners of the show are given $250,000-a-year positions in the Trump Organization, but Newsweek reports that the jobs are less about climbing the corporate ladder and more about using their newfound celebrity to promote Trump. Last season's winner, Kelly Perdew, has a desk in a small, windowless space next to the assistant to Donald Trump's wife, Melania.

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GETTING LOUDER: Members of the Newspaper Guild-Communications Workers of America are stepping up their protests against news service Reuters, the first big media company to outsource journalism jobs. Union activists are handing out leaflets outside Reuters offices in New York City, and have taken out ads in several publications, pointing out some high-profile errors that have come out of a small newsroom in Bangalore, India. Global Managing Editor David Schlesinger says he's offended by the suggestion that American journalists are superior to their foreign counterparts. The wire service's top brass say job losses in New York have been minimal, and outsourcing won't reduce its pool of journalists worldwide.

Email your comments to cjeditor@dowjones.com.

-- May 20, 2005


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