Manufacturing Jobs

Last week, we used Shift Share analysis (see answer to last week’s quiz below) to demonstrate that the state of the Wisconsin economy very much mirrors the state of the U.S. economy.

Shift-share is a traditional economic analysis tool that provides a measure of the impact of the U.S. economy on employment in Wisconsin. This week, we we again use Shift Share, this time to focus on the manufacturing sector.

QUESTION: Between 2007 and 2010, Wisconsin’s manufacturing sector lost -71,778 jobs. What percentage of the total net jobs lost in Wisconsin between 2007 and 2010 were manufacturing jobs?

A. 17 percent
B. about 1/4t
C. about 1/3
D. almost 1/2

d) Almost half

The -71,779 manufacturing jobs lost in Wisconsin represent 48 percent of the 150,316 total net jobs lost between 2007 and 2010.Again, Shift-share analysis can help understand the causes of these losses.

Shift-share reveals that the overall weakness in the national economy caused an estimated loss of -28,122 manufacturing jobs in Wisconsin. Sharp declines in the manufacturing sector resulted in the loss of another -56,521 manufacturing jobs in the state. A portion of these losses were offset by an estimated increase of 12,864 manufacturing jobs attributable to the relative competitive advantages Wisconsin manufacturers have over manufacturer in other states.

To summarize, -28,122 – 56,521 + 12,864 = -77,779.

For more about Shift-share analysis:
To calculate Shift-share estimates for any county in the U.S.