Over 3 million jobs would disappear if U.S. auto-makers go bankrupt
Source: Economic Policy Institute

If bankruptcy shuttered one or more U.S. auto-makers, the effect would be the loss of up to 3.3 million jobs in the U.S. within the next year, according to a study released today by the Economic Policy Institute. Michigan alone could lose over 400,000 jobs, and stands to be the hardest hit state both in the number of jobs lost and the share of total state employment (8.9%) lost. The report lists possible job losses in each state and the District of Columbia.
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If these giants fall, they would take down more than auto worker jobs. When the wages from those auto sector jobs dry up, an additional 576,700 to 2.1 million “re-spending” jobs would be lost. These are jobs that would have been supported by the spending of auto and related workers. Tax losses and increased government payments would exceed $150 billion in the first three years following bankruptcy of all three domestic auto companies. Without cars to export, the U.S. trade deficit would rise by $109.3 billion.

+ Full Report (PDF; 171 KB)

This entry was posted on Monday, December 8th, 2008 at 9:47 am and is filed under Business and economics, Industries, Labor, Motor vehicles. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.