Why millions of jobs are disappearing in the US – 13 reasons 

150 150 tony

Why millions of jobs are disappearing in the US – 13 reasons 

Millions of workers are slowly finding themselves out of work and this is owed to the changing economic times and the ever-evolving job demands. In the US, millions have already been laid off and the trend seems to be only in the initial stages since more industries and companies are projecting more job losses. Here are 13 reasons that explain why millions of jobs are disappearing in the US.


Technology has taken over the job industry and it is leaving a tragic wreck in its wake. From programmed machinery to straight-on technology, the job market is slowly being eroded since workers can no longer integrate themselves with the new technology being produced.


A major reason why millions of jobs are disappearing in the US is that most companies are outsourcing to get cheaper labor with similar productivity. Outsourcing has been made easier with the digital world and this more companies are willing to take the step to lower costs by getting labor from other countries.

Wage erosion

The aspect of wage erosion is a major worry for the US economy since companies are increasingly reducing their wage budgets with every passing financial year. The decreasing wage budgets mean most people lose their jobs as a result since companies scale down significantly.


Companies have not fully recovered from the recessions that hit the world economies in the 2000s and hence are failing to meet the basic income demands of the workforce. Companies are trying to have a lean workforce with only the valuable assets on board and this means they are striking out the rest of the workforce.

Companies are moving production

One major consideration that comes to mind when jobs keep disappearing in the US is the fact that companies are moving out of the US and setting up production plants in other parts of the world. Places like China are appearing as attractive destinations for production plants where it is cheaper to handle production.

Setting of specialty roles

Companies are setting specialty roles for their workers which means the middle-wage workers who handled general duties are being laid off. Specialty roles are what companies are going for where specialized and skilled tasks are set and this effectively eliminates the low skill workforce.

Cautious resource management by companies

Due to the lessons learnt in the recession periods, companies are sitting on money. Companies are mostly afraid of an economic downturn and hence, they are cautiously approaching their investment cycle. The resources they have are being invested in infrastructure as opposed to wages and personnel which means many workers are losing jobs with companies not willing to continue spending on them as opposed to placing a premium on longevity.

Advent of AI

With computers able to program and direct operations in plants and production platforms not to mention the handling of complex and simple tasks in equal measure; workers are losing their jobs at an alarming rate. Robots are high on demand as well as the idea of self-driving cars which are bound to eliminate truck and bus drivers.

Lack of job retraining

Most workers lack the capacity and opportunity to retrain for jobs especially with the adoption of technological advancements that are revolutionizing how industries operate. If a worker doesn’t retrain to fit the job demands that are prescribed by the adopted technology, the only action companies are left with is to lay them off which explains why many are losing their jobs.

Software solutions

From troubleshooting to problem solving, advanced software play a role in providing a solution that workers were charged with delivering upon. With that aspect covered, companies are lacking use for the workers since their tasks are handled more efficiently and faster and this makes companies have no choice but to let them go.

Job replacements

83% of jobs where workers make below $20 an hour are bound to be replaced. This is mainly because companies are searching for more value for money which means spending little amounts on little productivity doesn’t serve the long-term purpose of the business. Companies are searching for more value which means they are open to spending more for greater returns and this means laying off middle-scale workers to give way to greater work setting.

Creative innovations

Silicon Valley is bringing a new wave of creative developments which is an admirable setting but what many don’t fathom is the negative impact which includes reducing the number of jobs. For instance, customer service personnel, fast food workers and lately cashiers are all facing a loss of jobs since there are innovations that are meant to take over their roles.

Economic evolution

Labor participation rates are declining as part of the economic evolution and this can be placed in deeper perspective whereby every 1% decline relates to in excess of 2.5 million jobs being lost. This economic evolution is a major reason why millions of jobs are disappearing.

Leave a Reply

Your email address will not be published.