Th is paper shows that a "new wave of globalization," involving extensive off shoring, has raised both actual and perceived labor market insecurity in industrialized countries. The paper analyzes various channels through which this new wave of globalization leads to economic insecurity. It emphasises the key role of overall macroeconomic conditions in determining the outcome of off shoring. The paper points out the inadequacies of various policy responses that industrialized countries have come up with so far and advocates urgent steps toward formulation of policies and erection of institutional structure more appropriate to confront the challenges of the new of globalization. 1. Introduction -- 2. Economic Insecurity in Industrialized Countries -- 3. The "New Wave" of Globalized Production -- 4. Globalization and Economic Insecurity -- 5. Conclusion and Prospects for the Future.