Deloitte Study: Aerospace and Defense Jobs Expected to Grow

Feb 16, 2016, 09:00 ET from Deloitte

NEW YORK, Feb. 16, 2016 /PRNewswire/ -- Deloitte's "U.S. Aerospace & Defense Labor Market Study" found after several years of job losses, sector employment is expected to grow in 2016 by more than 39,000 jobs in the U.S.1 This reverses a five-year trend that resulted in employment decreases of 9.4 percent, of which about 185,000 jobs were lost in the defense subsector. However, despite the decline in employment numbers, the U.S. aerospace and defense sector experienced increased wages and taxes paid since 2010.2

"The U.S. aerospace and defense sector continues to be one of the top employers in the U.S. economy, even with the five-year decrease in total employment," said Tom Captain, vice chairman, Deloitte LLP, and aerospace and defense leader. "This sector's jobs are also paying almost twice the national average, leading to greater economic value creation. A return to growth will be healthy for innovation, product development and game-changing technology creation – a cornerstone of this industry."

According to the study, the aerospace and defense sector directly employed 1.2 million workers in 2014, and another 3.2 million indirectly.3 The defense subsector contributed heavily to the overall decline since 2010, with an 18 percent decrease in jobs. The smaller commercial aerospace subsector helped offset these losses with a 17 percent increase in jobs in the same period.4

Despite a decrease in employment overall, aerospace and defense sector companies paid $7.7 billion in corporate federal income taxes and $4.1 billion in state and local income taxes in 2014, a $1.5 billion growth in total corporate taxes paid since 2010. Additionally, individual income taxes paid totaled $23.9 billion in 2014, a 9.9 percent increase since 2010.5

While aerospace and defense sector employees are found in every state, seven states accounted for half of all aerospace and defense sector employees in the U.S. The top states, in descending order, are: California, Washington, Texas, Florida, Arizona, Connecticut and Kansas.6 This does not include those employed in the public sector.

About Deloitte's Aerospace and Defense Practice
Deloitte's aerospace and defense sector focuses on top issues facing the industry. Deloitte aerospace and defense practitioners have deep industry experience and are actively involved in various segments of the industry, including: M&A, advanced technology programs, airplane program launches, and acquisition reform and economic assistance packages. For more information about Deloitte's aerospace & defense group, please visit: www.deloitte.com/us/aerospace.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including 80 percent of the Fortune 500. Our people work across more than 20 industry sectors to deliver measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to make their most challenging business decisions with confidence, and help lead the way toward a stronger economy and a healthy society.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.  Certain services may not be available to attest clients under the rules and regulations of public accounting.

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1 Deloitte analysis based on data from Bloomberg (accessed as on 18 January 2016), company annual reports and 10-K statements
2 Deloitte analysis based on data from the Bureau of Labor Statistics, www.bls.gov, the U.S. Office of Personnel Management, www.opm.gov, the U.S. Census Bureau, www.census.gov, the Bureau of Economic Analysis, www.bea.gov, company annual reports and 10-K statements, and S&P CompuStat, www.compustat.com
3 Deloitte analysis based on data from the US Bureau of Economic Analysis' RIMS II multipliers; https://www.bea.gov/regional/rims/rimsii/
4 Deloitte analysis based on data from the Bureau of Labor Statistics, www.bls.gov, the U.S. Office of Personnel Management, www.opm.gov, and the U.S. Census Bureau, www.census.gov
5 Deloitte analysis based on data from the Bureau of Labor Statistics, www.bls.gov, the U.S. Office of Personnel Management, www.opm.gov, the U.S. Census Bureau, www.census.gov, company annual reports, and the U.S. Bureau of Economic Analysis, www.bea.gov
6 Deloitte analysis based on data from the Bureau of Labor Statistics, www.bls.gov, the U.S. Office of Personnel Management, www.opm.gov, and the U.S. Census Bureau, www.census.gov

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