The Center for Automotive Research estimates that General Motors’ 83,860 direct U.S. employees support another 681,000 jobs throughout the U.S. economy.
The CAR study noted that of those jobs supported by the auto company, 207,420 jobs are at companies that feed parts directly into GM factories. In addition, another 291,280 jobs are supported in the U.S. economy by GM’s direct and indirect employees spending their earnings, according to the Ann Arbor, Michigan-based organization.
Including the people who work for General Motors, the employment multiplier for GM’s U.S. manufacturing and related jobs is 8.1, meaning that for each GM job, 7.1 other jobs are supported in the U.S. economy, CAR reported in a new study released this week.
GM’s U.S. employment also supports $51.6 billion in private non-farm earnings and $13.7 billion in government receipts from personal income taxes and contributions for government social insurance and transfer payments. The company’s estimated employment contribution is equivalent to 0.39% of total U.S. private sector employment and 0.46% of total U.S. private compensation.
The fact that the compensation share is larger than the employment share implies that GM employees earn more on average than do other U.S. workers. CAR estimates GM accounts $37.9 billion in private disposable personal income in the United States in 2019.
CAR’s estimated that General Motors – the largest automaker by U.S. market share and second-largest automaker by U.S. light vehicle production volume – remains a significant contributor to the U.S. economy, particularly the nine states in which GM has manufacturing facilities.
Close to 90% of the light vehicles GM builds in the United States are also sold here. GM is also among the largest investors in the U.S. automotive industry, with a total of $44.3 billion in announced investments in the country since 2000.
During the past 19 years, nearly four out of every five dollars General Motors announced it would invest in North America have been spent on U.S. facilities.
The study estimates the employment and economic contribution of General Motors’ United States operations to the United States economy and the economies of the nine states in which GM has significant manufacturing operations in 2019.
After it announced plans to shutter plans in the U.S. and Canada, GM came under heavy fire from both the United Auto Workers and number of political figures, including President Donald Trump, for its investments in Mexico, which is now a major source of vehicles for GM vehicles sold in the U.S. and other parts of North America.