US to Create 350,000 New Jobs This Year Due to 'Reshoring Effect'

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] An analysis has emerged that 350,000 new jobs will be created in the United States this year due to the reshoring effect, which refers to the return of overseas production bases to the home country.

The Wall Street Journal (WSJ) reported on the 20th (local time), citing the U.S. lobbying group 'Reshoring Initiative,' that 350,000 new jobs are expected to be created in the U.S. this year as a result of the global supply chain restructuring. It is analyzed that companies experiencing supply chain crises after the COVID-19 pandemic have decided that moving production facilities to the U.S. is advantageous, leading to a boom in the U.S. labor market.

The 350,000 new jobs represent the highest number since the Reshoring Initiative began compiling reshoring-related statistics of production facilities moved from China to the U.S. in 2010.

In 2010, the number of jobs increased by reshoring in the U.S. was only 6,000, but it rose to 180,000 in 2020 when the COVID-19 pandemic occurred, and further increased to 260,000 last year.

Russia's invasion of Ukraine and China's threats to Taiwan are also analyzed as factors that have fueled reshoring.

The U.S. government plans to increase the domestic production share of key industries such as semiconductors through reshoring. Recently, through laws like the 'CHIPS and Science Act,' various benefits have been promised to companies investing in the U.S.

WSJ introduced the case of SK Group, which decided to invest $22 billion (approximately 29 trillion won) in new investments, noting that dozens of companies announced plans to build new factories in the U.S. just last month.

Jill Carey, U.S. asset investment strategist at Bank of America (BoA), said, "Reshoring will be a long-term trend," adding, "This trend has become clear after the COVID-19 pandemic."

This content was produced with the assistance of AI translation services.