Related BLS programs | Related articles February 1992, Vol. 115,
No. 2 Christopher J. Singleton T he U.S. automobile industry has
undergone tremendous structural change in the past decade.1 Once
the world's dominant motor vehicle producers, U.S. automakers
faced increasingly fierce competition from foreign manufacturers
during the 1980's. This stiff competition, coupled with the
highly cyclical demand, has resulted in fluctuating output and
employment growth for the U.S. motor vehicle industry. The
industry's strong long-term productivity growth rate, in the
context of moderate demand, has also depressed employment
growth. Traditionally one of the U.S. economy's largest
employers, the industry affects, both directly and indirectly,
the job prospects of hundreds of thousands of workers. Its lack
of sustained employment growth during the 1980's has therefore
had a noticeable negative impact on the U.S. economy,
particularly the manufacturing segment. (See appendix for a more
inclusive definition and discussion