Report | Budget Taxes and Public Investment

When giants fall: Shutdown of one or more U.S. carmakers could eliminate up to 3.3 million U.S. jobs

Briefing Paper #227

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If bankruptcy shuttered one or more U.S. automakers, the effect would be the loss of up to 3.3 million jobs in the U.S. within the next year, according to this new briefing paper released by EPI. 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. If the Big Three 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. The report lists possible job losses in each state and the District of Columbia.