Cheezhead Recruiting News and Opinion

Is a high rate of unemployment and a low chance of finding exactly the right job driving American workers out of the country?

How to keep the American workforce – especially younger and Generation Y workers – in the United States is an issue that recruiters and employers are increasingly having to deal with.

The problem isn’t that there aren’t enough workers to fill positions, as there are often several available job seekers for any one opening. However, many of the country’s more skilled workers are getting frustrated with taking pay cuts and jobs below their experience level, so they’re seeking new opportunities in new places.

U.S. News & World Report last year found that a large number of American citizens had already left for other countries and even more were planning to do so in the near future. Many of those leaving the country are entrepreneurs, teachers or high-tech workers, while others are unemployed and simply looking for more opportunities.

It has been estimated that workers leaving the country are costing America about $30 billion in payroll, not to mention a loss of critical expertise. And foreign governments only make it easier for workers to be successful there.

For instance, the Panamanian government gives microinvestor visas to entrepreneurs who put up at least $50,000 and employ at least three Panamanian workers. In other places, such as China, it’s extremely inexpensive to start your own business when compared to costs in America.

The exact number of Americans living abroad is still under debate. The government attempted to find out that number in 1999, but the process was thought to be too inaccurate and too costly.

A series of Zogby polls commissioned by New Global Initiatives found 1.6 million American households had determined to relocate, an additional 1.8 million households were seriously considering moving and 7.7 million were “somewhat seriously” considering it.

So where are all the workers going? While Europe continues to be a big draw for American emigrants, even more people have relocated to Canada or Mexico, while others are moving to Australia, New Zealand and Asia, and a new trend has people leaving for Central and South America.

The Association of Americans Resident Overseas recently found that 5.25 million Americans are living in more than 160 foreign countries. About 109,600 reside in Africa; 754,000 are in East and Pacific Asia; 1.48 million are in Europe; 586,000 are in the Near East; 97,000 are in South Central Asia; and 2.22 million are in the Western Hemisphere

A recent article from The New York Times found that China is a popular spot for many younger workers. Even those who have little or no knowledge of Chinese are having a lot of luck amid the country’s booming economy. The lower cost of living and fewer dues help Americans profit quickly in China.

Younger workers are more drawn to the experimentation going on in China’s economy and are more willing to take risks and try something new. Entrepreneurs benefit from the country’s stable economy, with unemployment in urban areas at only 4.3 percent and an overall gross domestic product that rose 7.9 percent last quarter when compared to 2008.

Employers in China are often willing to hire American workers, because they sometimes posses skills that are harder to find among Chinese workers, and those who speak English can help Chinese companies to better navigate the American market.

Factors like these allow American workers to climb up the career ladder faster than they ever would in the United States, which helps add to the appeal. And although experience in China or any other country doesn’t always translate to a free pass for a job in America, many young Americans working abroad do plan to eventually return to the United States.

So what can recruiters and employers in America do to entice those in the workforce tempted to leave to stay?

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