Bangalore: Asserting that worries of US job losses are exaggerated due to movement of skilled jobs abroad, Nobel Laureate and American economist Joseph E Stiglitz today (Jan 15, 2004) said there would be more jobs created in the US if the economy improves, than it would have lost.

"One estimate is 3.3 million service sector jobs would have been lost between 2000 and 2015. But, if the economy performs well, over 50 million new jobs (gross) will be created," Stiglitz said in Bangalore on the second day of the Bangalore Workshop on Information and Communication Technology for Sustainable Development.

However, he warned that the gross increase would be about six per cent, as against the net loss of 20 per cent jobs.

Stiglitz said the rising unemployment in the United States would have a major impact on its political campaign in an election year.

"There are worries that even skilled jobs are threatened, even seemingly service sector jobs can move (abroad)," the former World Bank chief economist said.

Reassuring that most service sector jobs cannot move, Stiglitz, who won the Nobel Prize for economics in 2001 said. With economic recovery, even if it is weak, job picture will improve.

"But the worries are real. There are evidence of more "structural" unemployment than in previous downturns, so job recovery will be slower," the former Chairman of the White House council of economic advisers under President Bill Clinton said.

"There is a weakness in the American educational system, whose values may undermine its long run competitiveness. American students don't want to be strong in science and technology, they want to make a big deal in finance and business," Stiglitz said.

He said US had relied on recruiting best students from abroad and America's borders have become less open.

Stiglitz slammed the United States for being protectionist by advocating "fair" and not "free" competition, adding, "with fair competition America can outsell and outperform any country.

"US today touts not free but fair competition that is against principles of competitive advantage. If it is not good for the US, it is not fair," Stiglitz, who is a professor of economics and finance at Columbia University said.

The US, he said, however ignores principles of comparative advantage and that principle responsibility for maintaining full employment lies with macro-economic policy, adding, "That is where real responsibility lies".