February 16, 2025 | Digital Marketing Agency in Manila | Web Design

US labour market shifts with business owners hiring foreign nationals to work remotely If you think there is loyalty among the people who have migrated into the USA over the country they left behind, this scenario may change your perspective. We recently noticed a company that claims to be the largest pediatric group in Califonia runs the entire company through a base in Sri Lanka, thus taking away over 200 jobs from Americans. At a time when so many homeless are in California, they do this to maximise profit because which capitalist wants to pay more when you can get cheap labour? As the U.S. economy faces increasing challenges in 2025, one of the critical issues being addressed by the new Trump-Vance administration is the outsourcing of jobs by foreign nationals holding U.S. permanent residency (PR). Imagine this: a company secures a government contract from US taxpayer money to offer insurance to people in the US who can't afford paid insurance, and it outsources the company's jobs to other countries. While outsourcing has long been a concern, a growing trend has emerged after COVID-19. Foreign nationals with PR status who have kids born in the USA hire employees from their home countries, notably Sri Lanka, India, Pakistan, Mexico and the Philippines, rather than employing U.S. citizens. This has created a loophole in the job market, effectively draining revenue from the U.S. economy while exploiting lower wages in foreign markets. The Trump-Vance government is aggressively addressing this issue, proposing new legislative reforms to curb these practices and ensure that American jobs remain in American hands. This article explores the economic impact, the legal landscape, and potential solutions and how digital marketing can be excluded from this issue. How Foreign Nationals with PR Status Are Driving Revenue Out of the U.S. Many foreign nationals who acquire U.S. permanent residency or Green Card holders establish businesses, staffing agencies, or work in hiring positions in major corporations. While this is not inherently problematic, the issue arises when these individuals prioritize hiring workers from their home countries instead of hiring citizens from the country they earn in. This is not an issue in the UAE because no one can own businesses without an Emirati partnership, but it's different in other countries. As a Filipino, I don't like it when foreign nationals who are living in Manila hire people from Los Angeles to work when there is local talent who needs jobs. I think it's the same vice versa. What if the largest pediatric group in Los Angeles is hiring Sri Lankan people because the founder is initially from Sri Lanka, and there is a vested interest in the home country rather than the USA? The Strategy They Use is as follows Hiring Remotely at Lower Wages Companies owned or managed by PR holders outsource jobs to workers in Sri Lanka, India, Pakistan, and other low-wage countries. By doing so, they pay wages that are significantly lower than U.S. labour standards, sometimes as low as 20-30% of what an American worker would earn. Exploiting Remote Work & Loopholes The rise of remote work has enabled businesses to bypass hiring Americans. PR holders argue that outsourcing is cheaper and more efficient, but it is a cost-cutting measure that directly benefits them financially while damaging the U.S. job market. Shifting Business Profits Abroad Instead of reinvesting revenue back into the U.S. economy, these companies often funnel profits back to their home countries, further weakening local job growth and economic stability. Manipulating Immigration Sponsorships Many PR holders sponsor foreign workers for U.S. jobs under the pretence of specialized skills, while in reality, these are jobs that U.S. citizens could do. This further reduces opportunities for native-born Americans and drives down wages in specific industries. Economic Impact and the pitfall of having the world reserve currency? The consequences of this trend are severe and impact multiple layers of the economy. Imagine the biggest company in the world offshoring all the factory jobs to ensure their product is affordable to the masses. Yet, this is spiralling down to every industry, regardless of country. 1. Rising Unemployment Among U.S. Citizens Outsourcing jobs means fewer opportunities for American workers especially the youth, in sectors like IT, customer service, and big tech. Young professionals and entry-level workers struggle to compete with significantly lower international wages. An offshore call centre manager may get the job at above-average pay in their country while a US citizen is unemployed. 2. Wage Suppression Paying foreign workers significantly less than Americans reduces the overall salary expectations in many industries. Companies still hiring Americans pressure employees to accept lower salaries to remain competitive with outsourced labour. 3. Tax Revenue Loss for the U.S. Hiring workers overseas reduces payroll tax contributions to the U.S. government. Money that should be circulating within the American economy is instead being sent abroad, decreasing consumer spending domestically. 4. Strengthening Foreign Economies at America’s Expense While outsourcing may seem beneficial from a business standpoint, it ultimately strengthens foreign economies like Sri Lanka, India, and the Philippines while weakening the U.S. The funds sent overseas help build infrastructure, businesses, and job markets in other countries but at America’s cost. A Distinct Perspective on Outsourcing and Employment While the outsourcing of various sectors has raised concerns about domestic job displacement, digital marketing presents a unique case. Unlike traditional industries, digital marketing often benefits from a collaborative global approach, which can improve both domestic and international opportunities. For a business in the US, the project output can be maximised regardless of the size of the digital marketing agency in the USA. The Nature of Digital Marketing Outsourcing When you look at digital marketing in Los Angeles, outsourcing involves delegating tasks such as content creation, social media management, search engine optimization (SEO), and pay-per-click (PPC) advertising to external agencies or freelancers. This practice is prevalent, with approximately 34% of businesses outsourcing digital marketing tasks. How Digital Marketing Outsourcing Differs Global Collaboration Enhances Creativity and Reach Diverse Perspectives: Engaging with international talent pools brings varied cultural insights, fostering innovative campaigns that resonate with a broader global audience. Market Expansion: Collaborating with a digital marketing agency in Manila can provide an SEO Agency in California with localized knowledge, facilitating entry into new markets and audiences. Cost Efficiency Without Significant Domestic Job Loss Supplementing, Not Replacing: Outsourcing in digital marketing often supplements existing teams, allowing companies to manage workloads effectively without necessarily reducing domestic staff. Focus on Core Competencies: By outsourcing specialized tasks, U.S. companies can concentrate on strategic planning and client relationships, potentially leading to business growth and creating more domestic jobs. Skill Enhancement and Knowledge Transfer Access to Specialized Skills: Outsourcing provides access to professionals with specific expertise, enabling the execution of advanced strategies that may not be feasible in-house. Learning Opportunities: Domestic teams can learn from outsourced partners, gain new skills, and stay updated with global trends, which enhances their competitiveness. Economic Impact and Job Market Considerations While concerns about job displacement are valid, the nature of digital marketing allows for a more symbiotic relationship between outsourcing and domestic employment. Job Creation Through Business Growth: Cost savings from outsourcing can be reinvested into the company, leading to expansion and the potential hiring of additional domestic staff. Demand for Localized Expertise: Certain roles, such as client-facing positions and those requiring an in-depth understanding of the local market, remain essential within the U.S., ensuring continued domestic employment opportunities. Digital marketing outsourcing, particularly to countries like Sri Lanka or the Philippines, offers a collaborative approach that can increase business capabilities without significantly impacting domestic employment. By leveraging global talent, U.S. companies can achieve cost efficiencies, access diverse perspectives, and foster innovation, all while maintaining and potentially increasing their domestic workforce. This balanced approach distinguishes digital marketing from other sectors where outsourcing may directly lead to job displacement. What is the Plan to Close the Loopholes in offshoring US jobs? The Trump-Vance government, taking office in 2025, is rolling out a set of aggressive reforms to address this issue. Key initiatives include. 1. “America First Hiring Act” Companies run by foreign PR holders must prove they have prioritized hiring American workers before outsourcing jobs. Employers must provide documentation showing they attempted to fill positions domestically at fair market wages. 2. Tax Penalties for Offshore Hiring U.S. companies outsourcing jobs will face new tax penalties if they hire an excessive percentage of foreign remote workers instead of U.S. citizens. Higher corporate tax rates for businesses with over 50% of employees based outside the U.S. 3. Stricter Immigration & Work Visa Audits Increased scrutiny of H-1B, L-1, and other work visas to prevent abuse by PR holders hiring foreign workers instead of Americans. Work sponsorships will require proof of necessity and not just cost-saving incentives. 4. Increased Investment in American Workforce Training Expanding apprenticeship programs to equip U.S. citizens with skills to compete with outsourced jobs. Encouraging onshoring incentives, offering tax breaks to companies that hire locally rather than overseas. Industries Most Affected by This Issue The sectors experiencing the most significant impact include. 1. Information Technology (IT) & Software Development Many PR holders from India, Sri Lanka, and Pakistan hire offshore developers instead of hiring U.S. talent. Tech jobs that should be filled domestically are sent abroad, affecting wages and employment rates in the U.S. 2. Customer Service & BPO Industry Call centres and support jobs are being relocated to Sri Lanka and the Philippines, eliminating thousands of American jobs, just like the case mentioned regarding the largest pediatric group in Los Angeles. Many remote support jobs that could sustain middle-class families in the U.S. are being outsourced for pennies on the dollar. Is Reform Enough to Protect American Jobs? The Trump-Vance administration recognises the need to close these loopholes and restore economic balance by ensuring that jobs meant for Americans are not being outsourced for profit. However, reforming legislation alone may not be enough. Stricter enforcement of labour laws to prevent businesses from taking advantage of wage disparities. A cultural shift in hiring practices, promoting American labour over cost-cutting measures. Substantial penalties for violators ensure that companies and PR holders engaging in job offshoring face real consequences. If these policies are successfully implemented, they can potentially restore millions of jobs to the American workforce, boost the economy, and ensure that the country’s financial resources stay within U.S. borders rather than being funnelled abroad. America’s future depends on keeping jobs where they belong: in America.

Get Help

Day: February 16, 2025

How Permanent Residents in the U.S Are Offshoring American Jobs

TALK TO US

Main Website Links

Other Resources