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Top 10 US States Losing Jobs From Deficit with China

There are many ways at looking at the effect of the US trade deficit with China.

One group, the Economic Policy Institute issued a report on Oct. 23 tying job loss to the growing deficit. 

In the report, the group says that between 2001 and 2016 the group said the U.S. lost 3.4 million jobs. 

“The growing trade deficit with China affects different regions in different ways,” write the authors of the report. “Some regions are devastated by layoffs and factory closings, while others are surviving but not growing the way they could be if new factories were opening and existing plants were hiring more workers. This slowdown in manufacturing job generation also is contributing to stagnating wages and incomes of typical workers and widening inequality.”

 The computer and electronic parts industry experienced the most dramatic growth in terms of the trade deficit, leading to the displacement or loss of more than 1.2 million jobs.

The widening trade deficit even has slashed the wages of workers without college degrees in sectors outside of manufacturing. Workers directly impacted by the trade deficit have lost $37 billion per year in wages from 2001 to 2011, according to the report. The wages of all non-college graduates dropped $180 billion per year because of the growing competition with imports from China and other low-wage countries. 

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