Transportation For America » Economic Policy Institute: Transportation for America Proposal Would Create More Jobs Than Reauthorization of Current Law

Economic Policy Institute: Transportation for America Proposal Would Create More Jobs Than Reauthorization of Current Law

June 24, 2010
By Transportation for America

Study finds that T4America’s policies would support 400,000 more jobs
than continuation of SAFETEA-LU

As America continues to reel from sustained, high unemployment, a new analysis by the Economic Policy Institute shows that, with a smart investment strategy, authorization of a proposed $500 billion transportation measure could support more than 7.2 million jobs.

EPI examined the jobs impact of two investment scenarios: a continuation of current transportation law, known as SAFETEA-LU, and a package of investments proposed by Transportation for America that emphasized maintenance and retrofits of existing infrastructure and completing the transportation network with adequate public transportation, in addition to highway capacity. The analysts found that, given an investment of $500 billion under either scenario, the T4America proposal would yield 400,000 more jobs over the six-year life of the law, for a total of more than 7.2 million jobs.

“The T4America proposal creates more jobs in large part because it calls for investments in more labor-intensive sectors of the economy, including repair and maintenance of the existing transportation system and public transportation,” said Ethan Pollack, the principle author of the study.

The analysis also found that the T4America investment strategy would especially benefit those hardest hit by the recession, including low-wage workers and Americans without a college degree. About 80 percent of the new jobs created would be filled by Americans without a four-year degree. The proposal also would create jobs at a higher level of unionization (15 percent) than the overall economy (12 percent).

“This study shows why America needs a new direction in our transportation policy,” said Teamsters General President Jim Hoffa. “Cleaner and smarter transportation investments will create millions of good paying quality jobs and put our nation on a path to a lasting economic recovery.”

The EPI study echoes the 2009 findings of the Political Economy Research Institute at the University of Massachusetts. That study showed that public transportation generates 31 percent more jobs than new construction of roads and bridges, and repair work on roads and bridges generates 16 percent more jobs than new road and bridge construction. While the T4America package includes ample funds for new highway capacity, the emphasis on maintaining existing infrastructure and on completing the transportation network with adequate transit produces more jobs than a continuation of current policy.

The T4America strategy would support more than 761,000 manufacturing jobs, helping to expand or revitalize a range of industries associated with transit vehicles and other technologies. Another study released today by Duke University and the Apollo Alliance found that the rail industry is poised for particularly strong growth. The study examined the U.S. manufacture of rail vehicles in intercity passenger, high speed, regional, metro, light rail and streetcars. It finds that the U.S. rail supply chain includes at least 247 manufacturing locations in 35 states. More robust investment in rail would especially benefit New York (with 31 rail manufacturing facilities), Illinois (23), Pennsylvania (26), California (22) and Ohio (13).

“Transportation for America has an important message for the nation: The right kind of transportation investment creates jobs,” said Sam Williams, president of the Metro Atlanta Chamber of Commerce, a T4America coalition member. “The vision of complete transportation networks, connected cities and viable transit options is critical to economic development not only in metro Atlanta but across the country. This is an important and timely message for Congress.”

Central to the T4America proposal is an emphasis on repairing existing infrastructure and expanding public transportation options in order to reduce our dependence on foreign oil, provide well-maintained roads and bridges, convenient public transportation and safe places to walk and bicycle, boost our economy and keep Americans active and healthy.