Trade Engagement Pays Through Higher Wages
Trade pays—and higher employee compensation and trade intensity go hand in hand. Employees in the most trade-intensive industries, where combined exports and imports amount to at least 64% of domestic industrial output, earn an annual compensation package averaging $93,952. This is more than 50% higher than in the least trade-engaged sectors. Industries in the most trade-engaged category also account for more than half of U.S. manufacturing trade. In comparison, the middle group of the three pays an average $82,046 in annual wages and benefits. Industries in this category account for 38% of U.S. manufacturing trade. The industries with the least trade engagement pay $60,552 on average and account for only 10% of U.S. manufacturing trade.
The premium pay of trade-engaged industries extends to other manufacturing and service companies in the supply chain. Employers at these companies—where jobs are directly supported by exports—enjoy higher pay than their peers at companies that are solely domestic.