Tuesday, July 22 2014
A new report released by Brookings Institution indicates that German foreign direct investment accounts for over 500,000 jobs in the United States, a significant portion of total foreign job creation in the US. According to the report, 9.1 percent of foreign jobs in the US have been created by German companies. This makes Germany the third largest contributor to the US job market, behind England and Japan. Two German states, North Rhine-Westphalia and Baden-Württemberg, also ranked among the top ten highest investing regionsin the US.
Chemical production and manufacturing contribute the most jobs to the US market, owing to large companies like Siemens, BMW and VW. Much of German job creation in the US in centered on the Midwest, where there are strong roots in manufacturing and automobile production. However, the increased number of auto assembly plants in the southern states has led to a strong German business presence there as well. Areas of weakness for Germany include the pharmaceutical production and computer sciences fields, which are predominantly dominated by British, French and Japanese companies.
The Brookings report went on to praise the German dual training system as a great method for developing a strong workforce in the US. Companies who are importing the best practices of the German system into the US market benefit both the US and Germany, the report says. Authors of the section Ben Olinsky and Sarah Ayres praise programs like the Volkswagen Academy in Tennessee as a step in the right direction. “Programs such as these may be small in scale but their potential has caught the attention of policymakers eager to find innovative ways to both upgrade the technical education system and better align programs and offerings with employer needs,” they note in their report.