December 1, 2005 – Increasing the number of jobs within the manufacturing sector is a necessity if the United States is going to begin reducing their record trade deficit, according to the latest Economic Policy Institute snapshot.
EPI economist Josh Bivens says the shift away from the production of traded goods within the U.S. has led to a ballooning trade deficit in manufactured goods, which in turn has led to massive job loss.
Between 2000 and 2004, the manufacturing sector has lost 3 million jobs, while the trade deficit in manufactured goods has increased by 42 percent to $164 billion. To prevent the loss of even more good paying manufacturing jobs, the report says the U.S. must move toward a balance in manufactured imports and exports.
“For the United States to begin, as it must, to work its way out of its enormous trade deficit, it will require more employment in the manufacturing sector. The sooner, the better,” Bivens states.
Read the EPI Economic Snapshot.