The reshoring of jobs back to the U.S. has been a major focus for both sides of the political aisle with the past and current administrations alike placing an emphasis on bringing back jobs. A recent report shows that reshoring efforts this year could not only surpass last year’s figures but also set a new record.
According to the latest report from the Reshoring Initiative, the U.S. is currently on pace to add back 224,213 jobs from abroad this year thanks to reshoring and foreign direct investment. This would be 38% higher than the 161,000 added in 2020 and also be the highest amount of reshored jobs ever recorded.
Additionally, for the second year in a row, reshoring job announcements outpaced FDI announcements 62% to 38%. While this is quite high, it’s still under 2020’s figures of 70% reshoring and 30% FDI. However, the number of companies reporting new reshoring and FDI set a new annual record of 1,844.
The Biden administration has placed a large emphasis on reshoring what they deem essential products, such as computer chips, EV batteries, PPE, pharmaceuticals, and rare earth minerals. These industries make up 62,500, or 28%, of the total jobs being added back.
As for what industries reshored the most jobs, transportation equipment ranked first with 54,971 jobs brought back. Most of these were jobs related to electric vehicle battery production. Chemicals ranked second with 37,233 and computer and electronic products ranked third with 36,635.
Much of the recent jobs are coming from Korea, which had just shy of 11,000 jobs reshored back to the U.S. This was followed by Germany with 7,286 reshored jobs and Canada with 5,900 reshored jobs. China ranked seventh with 2,183 reshored jobs, but the report notes these numbers may be underreported due to how factories announce where certain imports have been relocated from.