19 December 2008

NY could lose 150,000 jobs if Big Three fail

NY could lose 150,000 jobs if Big Three fail.

Story: Daniel Massey
Photo: "Plastic Auto on Grassy Knoll", A. Golden, eyewash design - c. 2005.

The tremors from a shutdown by the automakers would reverberate throughout the state’s economy, according to Rep. Carolyn Maloney.

A shutdown of the Big Three automakers would ripple throughout New York and cause as many as 150,000 job losses statewide, a new report by U.S. Rep Carolyn Maloney shows.

General Motors and Ford directly employ almost 3,000 workers at three production factories across the state, but the effects of a failure in Detroit would spread throughout the state economy and cause the largest single-year job loss since 1991, the report shows.

“The tremors from their collapse would be felt far and wide,” said Ms. Maloney, who is championing the use of federal Troubled Asset Relief Program money to rescue GM, Chrysler and Ford.

Ms. Maloney uses data from an Economic Policy Institute report that shows the state could lose 144,600 jobs if the big three shut down. The estimate includes direct job losses in auto manufacturing, losses of supply chain jobs at firms that provide automakers with goods and services, losses of jobs at dealers, and indirect losses created by spending declines among workers who lose their jobs.

The report came a day after the country’s three largest automakers announced significant production cuts in an effort to pare costs.

The New York job loss would be seventh-highest in the nation.

The EPI report says as many as 3.3 million jobs could be lost across the country if the automakers shut down.

Already, the state comptroller has forecast New York could lose as many as 225,000 jobs over the next two years. Ms. Maloney’s report says that the addition of auto industry losses could propel New York to its worst one-year job loss in history.

“It's in the best interest of American families to use funds from the Troubled Assets Relief Program to rescue these companies in order to avoid an economic earthquake,” she said.


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