High Unemployment Rate in Detroit Research Paper

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The big three could not afford to keep up production in the United States at levels previously seen and still make enough of a profit to lead them out of financial disaster. GM alone reduced its workforce to fewer than 45,000 workers (Feeley, 2011). Most of these jobs went overseas, where labor was cheap. As such, "the state of Detroit is not really surprising given the reorganization of the U.S. auto industry, which was the met and potatoes of the city's workforce in the first three quarters of the 20th century" (Feeley, 2011). Detroit suffers as the automotive industry tries to regain its footing. Outsourcing has been the biggest threat to American automotive jobs. "As the city's oldest plants closed, production moved outward," far overseas in places like China (Feeley, 2011). This helps explain why automotive profits have began to rise in the past few years, but this has not had a serious impact on the unemployment level of Detroit.

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Outsourcing provides a way for the big three to find a cost effective way at production that leaves the very workers that put them on the map out to dry.

Overall, looking at the environment, financial statements, and employment data, the theories presented here provide a reliable explanation for the high unemployment rates in Detroit. It is unfortunate to see the American people bail out the big three with their own tax money just to have these companies move their jobs overseas. Future analysis of this phenomenon might inspire public action to demand some production to return to Detroit in order to stabilize the job market in the region......

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https://www.aceyourpaper.com/essays/high-unemployment-rate-detroit-76843
   

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