On May 4, the Japan Automobile Manufacturers Association (JAMA) USA released a new study, “The Impact of Japanese-brand Automakers on U.S. Employment,” prepared by Rutgers University Economics Professor, Dr. Thomas Prusa. This study analyzes the economic contribution of Japanese-brand automakers to the U.S. economy.

Overview

For more than four decades, Japanese-brand automakers have played a significant role in shaping U.S. manufacturing and supporting millions of American jobs. In 2025, Japanese-brand automakers and their dealership networks supported approximately 2.34 million U.S. jobs, including over 1 million direct, intermediate and spin-off jobs generated through investments in U.S. production facilities, R&D centers, and corporate headquarters activities, as well as an additional 1.28 million direct, intermediate and spin-off jobs generated through member companies’ U.S. dealer networks.

The latest study provides a more detailed breakdown of this impact:

Direct Jobs

• 108,000+ line workers, technicians, engineers, designers, and administrative staff
• 370,000+ dealership employees, including mechanics/technicians and finance and administrative staff

Intermediate Jobs

• 534,000+ jobs in parts supplier networks
• 412,000+ jobs at suppliers of goods

Spin-off Jobs

• 919,000+ jobs in local communities supported by the economic activity of the above workers

All together, these jobs generate roughly $221 billion in labor compensation and $161 billion in disposable income for U.S. households, underscoring the industry’s broad economic impact. This impact reflects decades of sustained manufacturing investment and expansion in the United States with Japanese-brand automakers investing cumulatively more than $70 billion in manufacturing. These automakers’ have led manufacturing growth in the U.S. as their direct manufacturing employment has grown by 34% from 2012 through 2025. In contrast, overall U.S. manufacturing employment has increased by only about 5.4% over the same period.

Conclusion

The study reinforces that Japanese-brand automakers are a major and growing source of U.S. employment and economic activity. Their critical investments support not only direct manufacturing jobs, but also a vast network of suppliers, dealerships, and local businesses across the country.

The United States remains an attractive location for automotive production due to its large consumer market, strong educational institutions to develop a skilled workforce, well-developed supply chains, efficient transportation and logistics network and relatively stable legal and regulatory systems. However, sustaining this impact requires a stable and predictable policy environment. As automakers navigate trade uncertainty, technological change, and workforce challenges, maintaining policies that support investment and production in the United States is vital for the industry writ large.

Japanese-brand automakers have generated and supported millions of U.S. jobs. As leaders in shaping U.S. manufacturing, they have become and continue to be key contributors to U.S. economic growth.

To read JAMA’s full Jobs Study, click here.

Visit JAMAinAmerica.org to learn more about Japanese-brand automakers’ contributions to the U.S. workforce and economy.