July 25, 2007 (The Editor’s Desk is updated each business day.)
Employment concentration in automotive industries
In 2001, Michigan’s automobile manufacturing industry had 90,300 employees.
By 2005, this employment had fallen to 65,500. As a result, the industry’s
location quotient—a measure of relative employment concentration—fell from
9.3 to 7.9.
[Chart data—TXT]
Location quotients are the ratio of two elements. The first element is the
ratio of an industry’s statewide employment to the State’s total private
employment. The second is the ratio of an industry’s nationwide employment to
the Nation’s total private employment. The location quotient is the ratio of
these two elements. A location quotient greater than 1.0 indicates more local
concentration in an industry than the National average.
Despite the decline in concentration between 2001 and 2005, Michigan was still
the most concentrated State in automobile manufacturing in the nation in 2005.
Kentucky had the second highest concentration in 2005 with a location quotient
of 5.3.
In 2001, Indiana had the highest relative employment concentration in motor
vehicle body and trailer manufacturing industry, 8.0, and this concentration
increased to 9.9 in 2005.
In motor vehicle parts manufacturing, Michigan’s location quotient fell from
7.6 in 2001 to 7.0 in 2005. Despite this decline in concentration, Michigan
remained the most concentrated State in the nation in 2005 in motor vehicle
parts manufacturing.
The BLS Quarterly Census of Employment and Wages program produced these data. Employment data presented here are for all private-sector workers covered by State and Federal unemployment insurance programs. Find out more in "Automotive industries: Concentration and change,"
(PDF) Issues in Labor Statistics, BLS Summary 07-04.
Of interest
Spotlight on Statistics: National Hispanic Heritage Month
In this Spotlight, we take a look at the Hispanic labor force—including labor force participation, employment and unemployment, educational attainment, geographic location, country of birth, earnings, consumer expenditures, time use, workplace injuries, and employment projections.
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