http://www.washingtonpost.com/wp-dyn/content/article/2010/03/02/AR2010030201568.html

Controversy over Obama's plan to close International Labor Comparisons office
By Alec MacGillis
Washington Post Staff Writer
Tuesday, March 2, 2010; 12:11 PM

Like a scorekeeper for the world, a tiny unit within the Bureau of
Labor Statistics tracks globalization's winners and losers, and the
results are not always pretty for the United States. Manufacturing
jobs here, for example, have fallen faster since 1979 than in Canada,
Germany or Japan. Compensation for those jobs dropped here in 2008 but
jumped in South Korea and Australia.

Soon, however, Americans may be spared the demoralization in these
numbers: The White House wants to shutter the unit that produces them.

President Obama's budget would eliminate the International Labor
Comparisons office and transfer its 16 economists to expand the
bureau's work tracking inflation and occupational trends. The White
House says the cut, estimated to save $2 million, is one of many
difficult decisions the president was forced to make to control
spending.

"This budget had to make some tough choices and prioritize the
nation's most pressing needs during a challenging economic and fiscal
climate," said Office of Management and Budget spokesman Tom Gavin.
But the proposed cut has triggered an outcry from an eclectic group of
academics, business leaders and union officials -- a reminder that, in
the sprawl of the federal government, some seemingly obscure offices
have built a loyal following around their discrete missions.

The defenders argue that, given the need to succeed in a global
economy, it makes little sense to shut down the office that measures
how the country stacks up. There are other sources of foreign data,
such as the Organization for Economic Cooperation and Development and
the International Labor Organization, but none does as much as the BLS
unit to vet and adjust numbers for apple-to-apple comparisons on
productivity, unemployment and wage levels, supporters say.

"If you were going to cut this five years after they implemented it 50
years ago, that would be one thing -- who cared then about what's
going on in Asia?" said Georgetown University economist Robert
Bednarzik, who spent 10 years at the BLS and has started a petition
drive to save the unit. "But they've picked the worst possible time to
try and get rid of it -- when we're all in this together."

The International Labor Comparisons office dates to the 1960s, when
President John F. Kennedy demanded to know whether Western European
countries, which were reporting remarkably low unemployment rates,
were using a different standard of accounting. The office later
expanded to include Asia's emerging economies.

The biggest challenge was China, where reliable statistics are
particularly hard to come by. But in 2004, the office contracted with
Judith Banister, a former Census Bureau demographer then living in
Beijing, who dug up statistical books in local bookstores that helped
produce solid data on the Chinese economy. The unit added Brazil to
the mix, and in the near future it plans to release its first reports
on India.

Banister, a freelance researcher, said U.S. manufacturers need to know
what they are up against overseas -- and, in some cases, whether to
move work offshore.

Skeptics of free-trade policies criticize the closure for other
reasons -- the unit's data, they argue, show just how harsh
globalization is for the American worker, a reality that may be
inconvenient for an administration generally more trade-oriented than
the populist rhetoric of Obama's campaign suggested. They question if
the unit is being closed solely for the budget savings, noting that $2
million is a relative pittance, less than 1 percent of the BLS budget.

"The type of documentation [the unit] is putting out could be
detrimental to their efforts" on trade, said John Russo of the Center
for Working-Class Studies at Youngstown State University.

Gavin, the OMB spokesman, denied that motivation, saying the closure
"wasn't a reflection of the quality of the work or a reflection of its
usefulness so much as a reflection of priorities."

The budget proposal says the unit's statistics are "not widely used."
But supporters point out that the unit's Web site got 1.5 million page
views in 2009 -- about 4,000 a day.

Congress could yet decide to retain the program. Sen. Sherrod Brown
(D-Ohio), for one, is concerned about the closure, said his
spokeswoman Meghan Dubyak. "He plans on working with the
administration and [congressional] leadership to ensure that we still
have data to address offshoring and competitiveness issues," she said.

Meanwhile, the unit's close-knit group of workers is waiting to learn
their fate. Its director, Connie Sorrentino, who has worked in the
unit since the 1960s, said her colleagues were "devastated" when they
heard the news but have since been heartened by their supporters.

"What helps us keep our chins up are the people who don't want to see
it go under," she said. "You find out who your friends are when you're
on the chopping block. Though that's a heck of a way to do a customer
survey."


-- 
Robert Naiman
Policy Director
Just Foreign Policy
www.justforeignpolicy.org
[email protected]
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