Opinion | Why U.S. Firms are Adding Jobs, but Mostly Overseas

by Michael Diaz Jr. on April 27, 2012

Today, the Wall Street Journal released data from their analysis of large U.S.-based multinational companies showing that global companies, aided by overseas revenue, are faring better than purely domestic companies during the economic recovery.

“Nearly 60% of the revenue growth between 2009 and 2011 at the companies in the Journal’s analysis came from outside the U.S.,” according to the April 27, 2012, WSJ article by Scott Thurm.

The data also revealed that 35 of these large U.S. companies “added jobs much faster than other U.S. employers in the past two years, but nearly three-fourths of those jobs were overseas.”

As the global managing partner of a U.S.-based law firm with offices in the U.S., Latin America, Asia, Europe, and the Middle East, nearly every day I see, first hand, the growing opportunities for U.S.-based companies in emerging markets. However, that doesn’t excuse the U.S. from keeping the home fire burning, especially where jobs are concerned.

The sad truth, in my opinion, is that the USA continues to miss the forest for the trees. Over-regulation and aspirational, morality-based legislation continues to drag the USA into the gutter while emerging markets without regulatory restrictions continue to bowl strikes. Capital flight, jobs, and private money will continue to seek opportunities in a global marketplace where the rewards will continue to outweigh the costs and risks of doing business at home.

It is one thing to preach about business virtues and morality while you’re on top, it is quite another when you’re fighting for your financial existence and your known markets continue to drive down and eat away at your net profits.

Jobs, investments, and smart money will continue to seek opportunities in emerging markets where the promise of wider profit margins are within reach.

Altruistic, sermon-like preaching is fine on holy days, whichever day that means for you, but capital markets are too ruthless to care about their place in the after life.

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