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New Data Shows Japanese Auto Industry U.S. Employment Contributes to 1.36 Million American Jobs


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WASHINGTON -- August 18, 2014: Japanese-branded automobile companies’ production and R&D facilities and dealer networks contribute to an estimated 1.36 million private sector U.S. jobs according to 2013 data analyzed by Rutgers University Professor Dr. Thomas Prusa and commissioned by the Japan Automobile Manufacturers Association (JAMA) USA. The report highlights that Japanese-branded automakers’ continued investment in the U.S. helped to fuel an increase in the American workforce by several thousand from the previous year with the total annual compensation from jobs created in the U.S. exceeding $85 billion – an increase relative to last year’s estimate.

“In 2013, more than 1.36 million American jobs were supported, either directly or indirectly, by the Japanese-branded automotive companies’ U.S. operations.”

“The Japanese-branded automotive companies are an important source of U.S. employment and job growth,” said the study’s author, Dr. Thomas Prusa. “In 2013, more than 1.36 million American jobs were supported, either directly or indirectly, by the Japanese-branded automotive companies’ U.S. operations.”

Japanese-branded automakers directly employed 82,816 workers in 2013. Their manufacturing activities generated or supported an estimated 224,000 intermediate jobs (suppliers of goods and services), with another 393,000 jobs resulting from consumer spending by those in the direct and intermediate positions – totaling close to 700,000 jobs.

Japanese-branded new vehicle dealers’ direct and intermediate employment totaled 423,568 in 2013, with 319,568 resulting from direct employment and 104,000 resulting from intermediate employment. Another 240,000 jobs were spinoffs from the direct and intermediate workers’ consumer spending, totaling more than 663,000 jobs tied to dealerships.

All told, production and new vehicle dealers provide $85.1 billion in total compensation and $63 billion in disposable income.

“Japanese-branded automobiles once again prove to be an invaluable source of jobs and economic activity for the American economy,” said Ron Bookbinder, General Director of JAMA USA. “The figures in this latest employment report are a welcome sign for the manufacturing sector in America as well as for consumers looking for high-quality vehicles in the marketplace.” Bookbinder added, “JAMA member companies are more American than ever and will continue to be a source of economic growth and high-quality jobs in America’s automotive sector both now and in the future.”

Key Findings of the Study:

Production

New Vehicle

Dealers

Total

Employment
Total (Direct + Intermediate) 306,816 423,568 730,384
Direct 82,816 319,568 402,384
Intermediate 224,000 104,000 328,000

Spin-off 393,000 240,000 633,000

Grand Total
(Direct + Intermediate + Spin-off)

699,816 663,568 1,363,384

Compensation ($ billions nominal)
Compensation $45.9 $39.3 $85.1
Less: transfer payments & social insurance contributions ($5.6) ($4.2) ($9.8)
Less: personal income taxes ($6.5) ($5.8) ($12.3)

Equals private disposable personal income

$33.7

$29.2

$63.0