page_title: Causes of unemployment in the United States
section_title: Comparative international wage levels
hierarchical_section_title: Causes of unemployment in the United States / Global factors / Comparative international wage levels
caption_attribution_description: English: U.S. Hourly Wages - Real or Adjusted for Inflation 1964-2014
context_page_description: Job creation and unemployment are affected by factors such as aggregate demand, global competition, education, automation, and demographics. These factors can affect the number of workers, the duration of unemployment, and wage rates.
context_section_description: One of the reasons for off-shoring jobs or sourcing goods overseas has been considerably lower wages in developing or Asian countries. The NY Times reported in December 2012 that: "American wages are [not] anywhere close to those in countries in East Asia or other places where American imports come from. As of 2010 (the latest year available), hourly compensation costs for manufacturing in the United States were about four times those in Taiwan, and 20 times those in the Philippines, according to the Labor Department." However, foreign wages have been rising since 2000, while those in the U.S. have been stagnant.
  During 2011, entry level call center workers in the U.S. earned about $20,000 per year, about six times as much as similar jobs in India. According to the Congressional Research Service, during 2006, compensation for the average American production worker was $24.59 per hour, compared to $16.02 in South Korea, $2.92 in Mexico, and $0.81 in China.
  CEOs are under pressure from their boards to maximize profits and are paid bonuses accordingly; one method of doing so is offshoring jobs or sourcing inputs in the lowest wage countries possible. Firms in low-cost labor countries actively lobby U.S. and European companies to offshore a variety of jobs or locate new jobs and facilities overseas.
caption: U.S. real wages remain below their 1970s peak.[92]
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