State falls in line with national trend
Fifty-six percent of Louisiana’s private-sector economic output and 48 percent of its private-sector jobs in 2011 were tied to 601 U.S. companies doing business in the state that operate in global markets, a Business Roundtable report shows.
Louisiana’s statistics are comparable to national figures of 54 percent of economic output and 48 percent of private-sector employment.
“Globally engaged U.S. companies are a powerful engine for economic growth, supporting jobs and creating economic opportunity all across the United States,” said Business Roundtable President John Engler, who promoted in the report the potential benefits of “a more competitive U.S. tax system.”
The Business Roundtable, a conservative group of CEOs of major U.S. corporations that support pro-business public policy, launched a campaign earlier this year that calls on Congress and the Obama administration to adopt a corporate tax rate comparable to the Organisation for Economic Co-operation and Development, a group of 34 developed countries including Japan, Germany, Canada and the United Kingdom.
That “would help maximize the positive economic benefits of these businesses in Louisiana and all 50 states,” Engler said.
In Louisiana, the report says, globally engaged U.S. companies in 2011:
- Accounted directly and indirectly for $99 billion of Louisiana’s private-sector economy.
- Directly or indirectly supported 1 million private-sector jobs.
- Paid an average of $64,971 per job in wages, salaries and benefits.
The report, compiled by PricewaterhouseCoopers LLP, defines a globally engaged U.S. company as an American-headquartered business that owns or controls 10 percent or more of the voting securities of a foreign business entity. The report said about 26 percent of globally engaged U.S. companies are classified by the U.S. government as small businesses.
In its breakdown of the 1 million direct and indirect jobs in Louisiana, the report said globally engaged U.S. companies directly provided 335,900 jobs in 2011, in sectors such as services, trade and transportation, and manufacturing.
Purchases of goods and services by those companies supported an additional 319,300 jobs, including ones in professional and scientific services and in administrative services. Those goods and service suppliers in turn support another 360,000 jobs, including health care and social assistance and retail trade.
The 335,900 direct jobs accounted for $21.8 billion in payroll, while the indirect jobs added $31.3 billion.
The report also notes that globally engaged U.S. companies provided $1.6 billion in dividend payments to Louisiana residents in 2011, another source of income that it said supported an additional 6,600 jobs throughout the state.