RBA Annual Conference – 1994 Trade, Multinationals and Labour

Table 5: US Multinationals
Employment figures ('000) Employment ratios Compensation ratios
Total Production workers Non-production workers Prod. workers emp/non-prod. workers emp Prod. workers comp/non-prod. workers comp
1977 1989 Change % 1977 1989 Change % 1977 1989 Change % 1977 1989 Change % 1977 1989 Change %
United States(a)
Total(b)(c) 67,344 90,644 34.6 55,179 73,474 33.2 12,165 17,170 41.1   4.54 4.28 −5.7   — — −6.8
Manufacturing 19,682 19,426 −1.3 14,135 13,257 −6.2 5,547 6,169 11.2   2.55 2.15 −15.7   n.a. n.a. —
Multinationals(d)
Total 18,885 18,765 −0.6 n.a. n.a. — n.a. n.a. —   n.a. n.a. —   n.a. n.a. —
Manufacturing 11,775 10,127 −14.0 7,257 n.a. — 4,518 n.a. —   1.61 n.a. —   0.78 n.a. —
Foreign affiliates(e)
Majority-owned
Manufacturing affiliates in:
Developed countries 2,754 2,167 −21.3 1,695 1,196 −29.5 1,059 971 −8.3   1.60 1.23 −23.1   0.75 0.66 −10.8
Canada 562 455 −19.2 358 274 −23.5 204 181 −11.5   1.76 1.52 −13.6   0.86 0.81 −5.2
Europe 1,951 1,509 −22.6 1,202 828 −31.1 749 681 −9.1   1.60 1.22 −24.2   0.70 0.63 −10.0
Japan 40 75 86.6 14 23 62.0 26 52 99.7   0.53 0.43 −18.9   0.75 0.69 −8.5
Aust.-New Zealand-S. Afr. 201 129 −35.8 122 71 −41.3 80 58 −27.4   1.53 1.23 −19.1   0.78 0.68 −12.5
Developing countries 1,019 1,079 5.9 675 679 0.6 344 400 16.4   1.96 1.70 −13.6   0.47 0.41 −12.8
Total 3,773 3,247 −14.0 2,371 1,875 −20.9 1,403 1,371 −2.2   1.69 1.37 −19.1   0.68 0.59 −14.2
Majority-owned
Manufacturing affiliates in:
Food & kindred products 377 308 −18.5 248 184 −25.9 129 124 −4.2   1.93 1.49 −22.7   0.57 0.62 9.8
Textile products & apparel 102 82 −19.5 80 59 −27.2 21 23 9.3   3.78 2.52 −33.3   0.47 0.59 23.7
Chemicals & allied products 464 475 2.2 233 227 −2.5 231 247 6.9   1.01 0.92 −8.8   0.71 0.64 −9.1
Primary & fabricated metals 229 179 −21.9 158 117 −26.1 71 62 −12.5   2.23 1.88 −15.6   0.80 0.73 −9.4
Machinery, except electrical 523 508 −2.9 270 254 −6.0 253 254 0.4   1.07 1.00 −6.4   0.61 0.59 −3.9
Electric & electronic equipment 629 455 −27.7 422 288 −31.8 207 167 −19.3   2.03 1.72 −15.5   0.56 0.54 −4.3
Transportation equipment 740 597 −19.4 507 365 −28.0 233 231 −0.9   2.17 1.58 −27.3   0.97 0.61 −37.2
Other manufacturing 709 645 −9.0 452 382 −15.5 257 263 2.3   1.76 1.45 −17.4   0.75 0.59 −21.0
Total 3,773 3,247 −14.0 2,371 1,875 −20.9 1,403 1,371 −2.2   1.69 1.37 −19.1   0.68 0.59 −14.2
Notes: (a) Labour force totals according to the US Department of Labor's Employment, Hours, and Earnings, United States, 1909–90, Vol. 1.
(b) Figures for private non-farm establishments. The total non-farm figures are: 1977 – 82,471 million; 1989 – 108,413 million.
(c) The compensation ratio for total US employment is a comparison of the white-collar/blue-collar cost indices in 1977 and 1989, as published by the Bureau of Labor Statistics.
(d) According to, and based on, US Department of Commerce publications: 1977 US Direct Investment Abroad, and 1989 US Direct Investment Abroad. Information is for non-bank US parents of non-bank US affiliates.
(e) Classified by industry affiliate. According to the Department of Commerce publications referenced above.