Under defense budget "sequestration," 122,900 defense-dependent jobs will be lost in Virginia. That is according to a new study on the Aerospace and Defense Industry by consulting and auditing services company DeLoitte. The report points out that "defense budget declines may impact direct and indirect employment, ability to conduct research and development, and taxes paid."
Here are some key takeaways from the study:
* The U.S. aerospace and defense industry directly employed 1.05 million workers in America in 2010.
* The industry has an estimated indirect and induced employment of 2.36 jobs for every 1 directly employed. The grand total direct, indirect and induced employment associated with the U.S. aerospace and defense industry is 3.53 million jobs.
* In 2010, Aerospace and Defense workers received $84.2 billion in wages and paid $15.4 billion in U.S. Federal individual income taxes, and $1.9 billion in state individual income taxes.
* The average U.S. Aerospace and Defense worker earns $80,175 a year, almost double the U.S. average.
* Aerospace and Defense drives 2.23% of U.S. GDP.
* Aerospace and Defense supports 113,434 jobs in Virginia. Under defense budget "sequestration," 122,900 jobs will be lost in Virginia.
The bottom line is this: If sequestration is triggered, it will cripple our defense industrial base and the losses will be felt across the U.S. economy. I have long said that drastic defense budget cuts risk a weakening of the pillars of America: trade, jobs, innovation, and the American way of life.