1.6 million jobs lost if the Big 3 automakers do not get bailout funding.
By Daniel at 9 December, 2008, 3:26 pm
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According to CNN if the Big 3 bailout is rejected by Congress the impact on the US economy would be devastating. When you combine the possible job cuts within each of the Big 3 automakers with the job losses in the satellite industries of car dealerships and auto parts suppliers the number of people poised to make jobless claims is a staggering 1.6 million.
1.6 million jobs lost if the Big 3 automakers do not get bailout funding. That is more than three times the already uncomfortably high rate of jobless claims filed in the US last quarter. When those two figures are combined the US economy could be burdened with more than 2.2 million unemployed people by the end of the year. The impact of this number of unemployed people on other industries, and the economy in general, would be overwhelming.
A recent CNN report broke down the potential job losses by company and sector and it is the support industries that would suffer the most. Some estimates show that for each Big 3 auto manufacturing job there are 7.5 “spin off” jobs in support staff and other industries. Should the Big 3 automakers be denied bailout funding jobs would be lost across the board as follows:
GM - 120,000 jobs lost
Ford - 80,000 jobs lost
Chrysler - 66,000 jobs lost
Auto Dealerships - 740,000 jobs lost
Suppliers - 610,000 jobs lost
This totals 1,616,000 unemployed people if US automakers are left without bailout funding.
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