Manufacturing: the jobs multiplier
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Enterprise Florida
Manufacturing: The Jobs Multiplier
“For the past decade, manufacturing has accounted for approximately 8.7 percent of overall U.S. employment—this represents more than 12.3 million jobs at the end of 2020. The industry has the highest multiplier effect of any economic sector: for every $1 spent in manufacturing, another $2.74 is added to the economy.
According to a recently released report from Deloitte and The Manufacturing Institute, Creating Pathways for Tomorrow’s Workforce Today: Beyond Reskilling in Manufacturing, a U.S. manufacturing skills gap could leave up to 2.1 million jobs unfilled by 2030, which, using this multiplier, could mean a cost of $1 trillion for the U.S. economy.
The report says, ‘The manufacturing industry netted a loss of 578,000 jobs during the pandemic-challenged year 2020—a figure that represents nearly six years of job gains, and yet, at any given moment in the past six months, nearly 500,000 jobs have remained open in manufacturing.’ ”