US exports joblessness across globe

The US once exported jobs. Now, it is exporting unemployment.

America's deepening recession, which has cost 1.2 million jobs so far this year, is taking a heavy toll overseas. Shrinking consumer demand for imports and less need for outsourcing by US companies are idling workers at Germany's Porsche SE and pushing up Japanese joblessness.

Economists say worldwide unemployment may increase to a two-decade high as trade and investment ties that have developed during 20 years of globalization magnify the impact of the US contraction. Without buoyant economies elsewhere in the world to act as buffers, a longer, deeper slump in the labor market is likely.