In America around 20m jobs, or about one in seven, are lost involuntarily every year. Only a small fraction of those, some 2m-3m a year or 2% of all jobs, are permanent “displacements,” where workers have little or no prospect of returning to their old industry. The displacement rates for Europe are broadly similar. Only a small share of these permanent job losses can be directly attributed to globalization, rather than, say, to technological change.
A study by Lori Kletzer found that only 14% of displaced manufacturing workers are in industries facing intense international competition. To judge by the number of people receiving Trade Adjustment Assistance, the figure is even lower: fewer than 120,000 workers were deemed eligible for it in 2005.
“Trade’s Victims,” The Economist
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