Export-Supported Jobs Increased by Almost Six Percent in 2010, Brookings Report Finds

The U.S. economy rapidly has been becoming more export intensive over the last couple of years, according to a new report from the Brookings Institute — Export Nation 2012: How U.S. Metropolitan Areas Are Driving National Growth. According to the report, U.S. export sales grew by more than 11 percent in 2010 in real terms, the fastest growth since 1997, In terms of job creation, the report states, "export-supported jobs increased by almost six percent (approximately 600,000 jobs) in 2010, even as the overall economy was still losing jobs." The report also highlights an accelerated shift by U.S. exporters towards developing countries to take advantage of the growth in these countries. Canada and Mexico remain the largest export markets for the United States due to the NAFTA trade agreement (approximately 25 percent of all exports). The share of U.S. exports going to Brazil, India and China has increased two percent from 2008 to 2010. Brookings researchers contend that the 100 largest metropolitan areas (metros) were the key drivers of growth in exports. Overall, the top 100 metros produced "almost 65 percent of U.S. export sales, 75 percent of the nation's service export sales and 63 percent of manufacturing export sales" in 2010. In 30 states, large metros were responsible for the majority of the state's export sales. According to the report, Midwestern metros generated the fastest growth in direct export-production jobs. Among specific export-related sectors, manufacturing and high-value-added service exports (e.g., education, telecommunications services and business services) were highlighted as key sectors to the growth. U.S. manufacturing is credited for the export resurgence of 2010. According to the report, manufacturing industries were responsible for three-quarters of the nation's additional export sales between 2009 and 2010. High-value-added service export services saw uninterrupted growth through the recession and recovery. The authors provide several recommendations within three policies areas: Create a national platform for export growth — recommendations under this policy include accelerating the implementation of the export control reform initiative, committing to a national presence at global trade fairs, providing more and steady funding for the federal transportation system and integrating the federal progress metrics on the ground to reflect the cooperative system of export providers; Align the National Export Initiative (NEI) with the Metropolitan Export Initiatives (MEIs) — recommendations to align the NEI with on-the-ground export MEIs including the coordination of MEIs and the state programs, the provision of grants to the MEIs and the states that work with their metros in implementing an export strategy and the development of initiatives such as the Advanced Manufacturing Partnership; and, Metros should establish stronger linkages with trading partners — these recommendations focus on metropolitan leaders to forge stronger direct links to their region's trading partner (e.g., developing a single regional branding effort and maintain an active relationship once a trade partner is identified).