Wednesday, December 17, 2008

Auto crisis: Which states are most threatened by industry collapse?

According to all available data, more than 3 million workers are tied directly to or are dependent on a thriving auto industry for work.

If the auto industry collapsed, workers in all 50 states in a wide variety of manufacturing and service industries would lose work and possibly lose their jobs.

But according to new analysis at the Economic Policy Institute, the six states most harmed by an auto industry collapse include Michigan, Ohio, Indiana, Kentucky, Tennessee, and Alabama.

The loss of auto jobs would grow those states' unemployment rates by 4 to almost 9 percent, EPI reports.

EPI estimates that the crisis would lead to a quick loss in revenues to states by about $150 billion.

Other states that would face severe crisis in these events would include South Carolina, North Carolina, Wisconsin, Illinois, Mississippi, Oregon, Missouri, Nebraska, and many more, with these states seeing unemployment jump by 2.3% to 3.9%.

See more detail here.