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Employment rates in the AUTOMOBILE industry from 2007 to 2011
The automobile industry is one of the largest employers of labor in the United Sates employing approximately 880,000 workers, which is about 6.6% of U.S. manufacturing workforce. Overall workforce in the automobile industry includes those working in the assembly plants and motor vehicle manufacturing sectors. Despite the job contribution of the U.S. automobile industry, recent economic decline in the United States has led to the decline in the auto market shares making the major automobile companies working below capacities. Since the beginning of the decade, the automobile industry has laid off approximately 435,000 workers which amount to the 3.3% of all manufacturing jobs in 2008. (Platzer, & Harrison, 2009).
The objective of this paper is to discuss the U.S. employment rates of automobile industry from the second quarter of 2007 to second quarter 2011.
Employment rates in AUTOMOBILE industry from 2007 to 2011
"North American Industrial Classification System (NAICS) classifies companies in the automotive manufacturing industry as part of the larger transportation equipment manufacturing industry (NAICS 336)." (Thompson, & Merchant, 2010 P. 10).The automobile industry is an integral part of the U.S. economy. In 2007, the U.S. automobile industry provided 4.5 millions jobs nationwide, While the automobile industry provides employment to several people in...
(International Trade administration 2010). However, since 2007, the U.S. automobile industry has faced variety of challenges that include deep recession, rising Corporate Average Fuel Economy (CAFE) standards, gasoline prices, and changes in consumer tastes. Many automobile companies have incurred heavy debts due to the recent economic decline. The issues have been aggravated with the cutting down of production due to the decline in the market shares. The restructuring of the Detroit 3, General Motors, Ford, and Chrysler have also affected the employment level in the U.S. automobile industry. With the shift in consumer tastes, the Detroit 3 continues to lose market shares to foreign based auto companies, which makes the market shares of the Detroit 3 falling below 50% in 2008. The global economic recession between 2008 and 2009, and the increase in the price of gasoline that has exceeded $4.00/gallon have led the U.S. auto consumers to shift to the small more fuel-efficient vehicles. The overall factors lead to the decline of market shares of the Detroit 3 to 6.3 millions in 2008.
The impact of the cumulative economic problems has made the automobile industry to implement series of structural changes to resist the economic recession. Part of the…
References
Bureau of Labor Statistics, (2011). Automotive Industry: Employment, Earnings, and Hours. U.S. Department of labor.
International Trade administration (2010). On the Road: U.S. Automotive Parts Industry Annual Assessment. Office of Transportation and Machinery U.S. Department of Commerce.
Platzer, M.D. & Harrison, G.J. (2009). The U.S. Automotive Industry: National and State Trends in Manufacturing Employment. Congressional Research Service
Thompson, M.F. & Merchant, A.A. (2010). Employment and Economic Growth in the U.S. Automotive Manufacturing Industry: Indiana Business Review: 10-17
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