Defense-related employment and spending, 1996-2006

Monthly Labor Review

Volumn 121, Issue 7, 1998, Pages 14-32

  Thomson, Allison ^a  

^a NONE

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EID: 0042702857     PISSN: 00981818     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (17)

1. All data for this article are on a calendar-year basis.
2. This article is part of a continuing series from the Bureau of Labor Statistics, Office of Employment Projections: U.S. Defense Related Employment Retrenches, Issues in Labor Statistics, May 1995; and Norman Saunders, "Employment effects of the rise and fall of defense spending," Monthly Labor Review, April 1993, pp. 3-10.
3. This article is part of a continuing series from the Bureau of Labor Statistics, Office of Employment Projections: U.S. Defense Related Employment Retrenches, Issues in Labor Statistics, May 1995; and Norman Saunders, "Employment effects of the rise and fall of defense spending," Monthly Labor Review, April 1993, pp. 3-10.
4. Employment generated by defense spending can be divided into two categories - direct and indirect. Nearly all industries have some combination of direct and indirect defense-related employment. Direct defense-related employment evolves from the Defense Department's spending on all final goods and services. Indirect defense-related employment arises from the need to supply inputs to the producers of these final goods and services.
5. These estimates were derived from the 1996-2006 BLS projections in Monthly Labor Review, November 1997, various articles.
6. Ibid. Also, see first paragraph of the appendix.
7. A decline in job requirements does not necessarily result in fewer jobs in the economy or a rise in unemployment; other factors of demand, such as exports, investment, and personal consumption, could offset this decline.
8. These estimates were derived from the 1996-2006 BLS projections in Monthly Labor Review, November 1997, various articles.
9. The income multiplier effect - changes in defense spending directly and indirectly - has an impact on defense-related employment. These changes in defense-related employment produce shirts in consumption and investment patterns, which may alter employment in industries unrelated to defense spending. These tertiary affects are referred to as income effects and are not estimated in this study. Similarly, the effects from the lost reinvestment of profits and the decreased investment requirements resulting from reduced production needs are not examined.
10. Paying for Military Readiness and Upkeep: Trends in Operation and Maintenance Spending (Washington, Congressional Budget Office, September 1997).
11. st Century (Report of the National Defense Panel, December 1997).
12. st Century (Report of the National Defense Panel, December 1997).
13. st Century (Report of the National Defense Panel, December 1997).
14. The Costs and Benefits of Retail Activities at Military Bases (Washington, Congressional Budget Office, October 1997).
15. For additional information on defense-dependent industries, including aerospace, see Ron Hetrick, "Employment in high-tech defense industries in a post cold war era," Monthly Labor Review, August 1996, pp. 57-63.
16. Additional detail of the Bureau of Labor Statistics Employment Projections 1996-2006 can be found on the Bureau's Web Page, http//: stats.bls.gov and in the Monthly Labor Review, November 1997. Also, see BLS Releases New 1996-2006 Employment Projections (Bureau of Labor Statistics, Dec. 3, 1997).
17. Additional detail of the Bureau of Labor Statistics Employment Projections 1996-2006 can be found on the Bureau's Web Page, http//: stats.bls.gov and in the Monthly Labor Review, November 1997. Also, see BLS Releases New 1996-2006 Employment Projections (Bureau of Labor Statistics, Dec. 3, 1997).