Every Boeing (and Aerospace) Job Creates Three Additional Jobs
“Quality of Life begins with a Good Job in a company with a great future, and a Home is where that Good Job goes at night.”
Good Jobs and Homes not only go together, jobs are important for buyers to be able to get a mortgage. When buyers can’t afford a mortgage, the businesses of REALTORS® suffer. That’s why Seattle King County REALTORS® pays careful attention when King County and local cities take actions that help – or compromise – the opportunity for the private sector to create new jobs.
One of the key sources of new jobs is our local aerospace industry, including The Boeing Company which is the leading firm in the industry. As our state and local governments face challenging fiscal choices in connection with funding for education, transportation, public safety and other basic infrastructure, one of the recurring discussions involves the issue of tax preferences. In this regard, a study by the Washington State Department of Commerce indicates that tax preferences for aerospace in Washington are paying big dividends: The state is getting nearly three dollars in revenue for every dollar in incentives.
These incentives are currently used by more than 450 Washington aerospace companies in communities across the state, including many in south King County communities. Moreover, each job in the aerospace industry generates nearly three additional jobs throughout the economy, so that aerospace is responsible for nearly 250,000 jobs in Washington.
The state’s own analysis shows aerospace incentives will likely generate more than $21.3 billion in state and local tax revenue. This money will pay for vital public services in years to come.
The State Department of Commerce identifies the following as positive impacts of aerospace in Washington:
- The aerospace industry generated $76 billion in economic activity throughout the state of Washington in 2012.
- Boeing Commercial alone supported $70 billion in revenues to the state economy, which amounted to 11% of Statewide Gross Business Incomes – through direct sales of Boeing jets, supplier and other aerospace company revenues, employee wages, and spending.
- In 2012 the aerospace industry provided 132,500 jobs at 1,350 establishments across the state.
- 49% of Washington’s foreign exports in 2012 came from aerospace companies.
- Wages for the industry as a whole totaled $11.5 billion, representing 11% of all wages earned in Washington State.