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Study: China trade deficit cost Oklahoma jobs

OKLAHOMA CITY (AP) — Oklahoma lost more than 15,000 jobs between 2001 and 2007 because of the U.S. trade deficit with China, a new study shows.

The report by the Economic Policy Institute indicated 26,100 manufacturing jobs in Oklahoma were lost between 2000 and 2007. The study was conducted for the Alliance of American Manufacturing.

“Our flawed trade relationship with China is destroying good jobs in Oklahoma,” said Scott Paul, executive director of the alliance. “All manufacturing is facing a critical challenge, as we know, but what may surprise people is how hard workers in advanced technology are being affected.

“As China diversifies its export base — and it’s already expanding its electronic products, aircraft, auto parts and machinery — more American products will be unfairly disadvantaged.”

The study noted that Congress and the Bush administration “should ensure that China honors its trade commitments and dramatically revalues its currency, eliminates its questionable subsidies to industry and enforces its own labor and environmental laws.”

Joe Epperly with the Oklahoma Manufacturing Alliance said job losses during that time period were caused by manufacturers shifting to overseas production, but he said the number of manufacturing jobs is rebounding in Oklahoma.

“Oklahoma did lose a lot of jobs starting in 2000,” and manufacturing peaked that year with 170,000 jobs. By 2005, there were only 135,000 manufacturing jobs, “But in the last three years we have added more than 15,000 jobs, and we’re back up to 150,000 jobs.”

And in Oklahoma, which continues to be in a better position than the rest of the country due to its expanding aerospace, energy and aviation sectors, those more recent jobs have turned into more highly skilled, better paying positions, he said.

Statewide, the number of workers employed in the manufacturing sector in June remained stable, the latest figures from the Oklahoma Employment Securities Commission show. Overall, employment in the industry stayed unchanged from June 2007 to June 2008. However, the unemployment rate rose in 75 of 77 counties in June, the OESC said.

Mike Seney, vice president of operations at The State Chamber, said the state’s drop in manufacturing jobs in seven years does not mean they went to foreign countries.

“In Oklahoma City, we lost Dayton Tire and the GM plant, but those jobs didn’t go to China; they closed,” he said.

Jobs were also lost to increased productivity, and to an aging, retired work force that isn’t as quickly being replaced by younger workers.

“We are in a global market,” Seney said. “If you can’t compete you can’t survive.”