Blog
AS Micro: Manufacturing and the jobs multiplier
Ben Christopher
22nd September 2013
After looking at the decline in manufacturing in the UK and the dominance of the service sector taking up the lion's share of jobs, I came across this excellent NYT video highlighting the importance of the "jobs multiplier" in manufacturing. For every 1000 new jobs created in the automobile industry (secondary sector), a total of 5700 jobs will be added as a result as additional jobs in related sectors further down the supply chain are attracted to the initial 1000 (US Bureau of Statistics). In the service sector (tertiary), the total would be only 1700 - another convincing reason why rebalancing our economy towards "making more stuff" makes sense.