In recent months, fears over the loss of U.S. jobs to lower-paid overseas workers have struck Americans worried they could be hit next. Job "outsourcing" has become a major issue in the presidential campaign, Congress has moved to fight the trend, and 30 states are weighing measures to bar outsourcing by government contractors.
While job outsourcing fires up all-American outrage, it masks a more prevalent problem: joblessness among young people that's caused by high dropout rates. Each year, about 4 million 18-year-olds should graduate from high school. Of those, 1.2 million drop out without a degree. Estimates of the jobs lost each year to outsourcing vary, with many economists putting the figure in the hundreds of thousands. That's far less than the millions of young who are unemployed because they didn't finish high school.
And unemployment among dropouts is growing. In 2003, 2.4 million young people ages 16-24 who didn't finish high school were jobless, up 9% from 2001.
Yet dropout-driven unemployment doesn't get the high-level attention of outsourcing because states hide the problem behind exaggerated graduation rates. North Carolina reports 92% of its high school students graduate. Independent studies estimate the actual rate at about 63%, according to a recent report by the Education Trust, a non-profit group. California says 87% graduate, when a more accurate estimate is 67%.
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