Job loss less than half of cited figure, says researchDecember 17th, 2008 - 4:42 pm ICT by ANI
Washington, Dec.17 (ANI): According to the University of Maryland’’s Inforum economic research unit, the job loss figures currently being reported in the United States are misleading and overrated.
The impact of a Big-3(automakers-GM,Chrysler and Ford) bankruptcy and restructuring would be severe, but frequently-quoted job loss figures are misleading and overstated, the research says.
The study says job dislocation would be far less than what is being anticipated. In a worse case scenario, peak job dislocation from restructuring would be half of the three million mark commonly cited by the media.
“There will be plenty of economic pain from the inevitable restructuring of the U.S. auto industry, but the figures that are usually discussed are highly unrealistic,” said Jeffrey Werling, executive director Inforum.
The three million job-loss figure comes from two separate studies, which are technically correct, but based on implausible assumptions, Werling was quoted as saying.
“If 100 percent of the manufacturing capacity of the Big Three totally disappeared in a puff of smoke, about three million jobs could indeed be eliminated,” he added.
“However, we think that at most 40 percent of the Detroit-3 auto manufacturing capacity would be lost, and that this would mean a peak loss of 1.5 million jobs. But we think the more likely figure is just under a million.”Werling said.
Werling estimates that peak economic impact would be hit in 2011. (ANI)
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