The United States auto industry is showing strong job growth as manufacturers increase production levels. Ford Motor Co. announced at the end of May that it will make an additional 200,000 vehicles annually. This comes after Ford’s 400,000-unit increase in capacity last year.

Added production means lots of new jobs and a resulting boost for the economy. Ford vice president Jim Tetreault said his company plans to hire 3,500 more workers and expand employment hours by reducing its summer plant shutdown from two weeks to one week.

The auto industry has proven to be a steady source of employment in the manufacturing sector over the past few years. According to the Washington Post, Daniel Meckstroth, chief economist for the Manufacturers Alliance for Productivity and Innovation (MAPI), says that approximately 25 percent of manufacturing jobs added in the United States since 2009 have come from the auto industry.

New jobs within the auto industry translate into other new employment opportunities. When an auto company hires new workers, this is referred to as direct employment. Jobs at auto company suppliers are considered intermediate employment, and then there is the “spin-off employment” that comes via spending by freshly hired auto industry workers.

The Center for Automotive Research (CAR) estimates the 5,000 direct employment jobs created by the new Ford Michigan assembly plant created 24,000 jobs in the state of Michigan and 48,000 jobs in the United States. CAR estimates total wages and earnings resulting from that single plant to be in the neighborhood of $3.6 billion.

In its U.S. Industrial Outlook report for June 2013, MAPI predicts a total of 8 percent growth in motor vehicles and parts production in 2013, with additional expansion in 2014. Further, it forecasts the sale of 15.3 million cars and light truck units in 2013, followed by 15.7 million in 2014. MAPI reported high production growth in the early months of this year for big-ticket motorhomes (26 percent) and travel trailers and campers (10 percent).

[cf]skyword_tracking_tag[/cf]

Get Free Updates!

Stay in the loop with a bi-monthly newsletter, with all our news from the previous week.

I agree to have my personal information transfered to MailChimp ( more information )

We will never give away, trade or sell your email address. You can unsubscribe at any time.

Please Leave A Comment

comments

Related posts:

More Than 10 Million Jobs Create Longest Private Sector Job Increase in American History Job Growth Strong in May with 135,000 Jobs Added Technology is Driving the Auto Industry Forward Airline Industry Approves New Booking Tech That Will Create New IT Jobs June Jobs Report Show Signs Economy Is Recovering Slowly and Steadily