Business Roundtable study: International trade increasingly critical for American workers

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One in every five jobs in the United States depended on international trade before the outbreak of the COVID-19 pandemic in 2019, and deepening trade ties can accelerate U.S. economic growth, support high-paying jobs and reduce inflation, according to a new study released today by the Business Roundtable.

Since 1992, before the implementation of the North American Free Trade Agreement, U.S. jobs dependent on trade —both exports and imports — have increased by 186%, four times faster than total U.S. employment growth, the study found. With that growth, the proportion of American jobs tied to trade has nearly doubled from 10.4% in 1992 to 20.3% in 2019, demonstrating the increasingly critical role of trade for American workers across the country, the study’s authors said.

“U.S. trade and economic leadership drives U.S. competitiveness, innovation and opportunity by enabling American businesses, farmers and workers to reach new customers around the world while supporting tens of millions of American jobs at home,” said Lance Fritz, chairman, president and CEO of Union Pacific Railroad, who chairs the Business Roundtable Trade and International Committee.

“By deepening trade and economic ties across the Indo-Pacific, the Transatlantic, the Western Hemisphere, and with allies and key trading partners around the world, the United States can bring the substantial benefits of trade to more Americans while shaping the international rules of trade and commerce to ensure a level playing field for American businesses, farmers and workers,” Fritz said in a press release.

The Business Roundtable is made up of the chief executive officers of leading U.S. companies, among them Dan Houston, president, CEO and chairman of Des Moines-based Principal Financial Group, and John May, CEO and chairman of Deere & Co. Collectively, they represent every sector of the U.S. economy and bring a range of perspectives to bear on policy issues that impact the economy.

The updated study, prepared by Trade Partnership Worldwide, analyzes the latest available comprehensive employment and trade data from 2019 and examines the net impacts of both exports and imports of goods and services on American jobs.

Of the 41.5 million total U.S. jobs tied to trade, more than 15 million are estimated to be held by minority workers. Also, more than 28 million trade-dependent jobs provide Americans with middle-class incomes.

According to the report, every U.S. state realized positive net employment directly attributable to trade in 2019, and international trade had a positive net impact on U.S. jobs in both the services-providing and goods-producing sectors. In Iowa, a net total of 379,400 jobs were related to total trade; the largest-population states benefited the most.

The full study can be found at this page on the Business Roundtable website.