What Do We Know About Contracting Out in the United States? Evidence from Household and Establishment Surveys

A variety of evidence points to significant growth in domestic contracting out over the last two decades, yet the phenomenon is not well documented. In this paper, we pull together data from various sources to shed light on the extent of and trends in domestic outsourcing, the occupations in which it has grown, and the industries engaging in outsourcing for the employment services sector, which has been a particularly important area of domestic outsourcing. In addition, we examine evidence of contracting out of selected occupations to other sectors. We point to many gaps in our knowledge on trends in domestic outsourcing and its implications for employment patterns and to inconsistencies across data sets in the information that is available. We recommend steps to improve data in this area

Priorities for Industry Accounts at BEA

The U.S. economy is undergoing significant structural change that economists and policymakers would like to study from an industry perspective. BEA’s industry accounts--the input-output (I-O) accounts, the gross product originating (GPO) accounts, and the gross state product (GSP) estimates--provide much of the relevant data, but further enhancements are possible. BEA has ideas for improving these accounts, but resource constraints require that priorities be established and choices made. The impending conversion of BEA’s industry estimates to the new North American Industry Classification System (NAICS) offers both opportunities and challenges. This paper discusses the key issues, presents options for improving the industry accounts, and makes recommendations for future action.