Scott Wood of Carvana asked me about the increase in employment in automotive retail. With a bit of poking, I found that the Current Employment Survey (CES) run by the BLS provides fairly detailed breakdowns. Now I very strongly suspect that in the survey responses, employees at a new car dealer are not subdivided into those who work in service vs finance vs new sales vs used sales. All are likely classed by the main business category of new car sales. Still, this provides a starting point. As it happens, while used car dealership employees have risen faster, the bulk of the increase in employment stems from the rise in new car dealership employees. While I'm at it, I also am posting (i) car vs parts/accessories/tires and (ii) assembly vs parts manufacturing. As expected – well, at least by me! – people who work in parts plants vastly outnumber those at "the" car companies. The latter get the political attention, but they're not the ones who "make" cars, they just put together the pieces.
Mike Smitka has followed the industry (and the Japanese and Chinese economies) for 40 years, as an academic economist and now in retirement. David Ruggles has worked every phase of the retail side: new and used, sales and management, lease financing and consulting, in both the US and Japan. He is also retired.
Tuesday, September 5, 2017
Automotive Employment Decomposed: New vs Used Car Dealers
Mike Smitka
...employments is centered in new car dealers and parts manufacturers...
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