Pipe dreams? Jobs Gained, Jobs Lost by the Construction of Keystone XL a report by Cornell University Global Labor Institute

By Ian Goodman and Brigid Rowan - Cornell University Global Labor Institute, September 2011

The purpose of this briefing paper is to examine claims made by TransCanada Corporation and the American Petroleum Institute that, if constructed, TransCanada’s proposed Keystone XL (KXL) pipeline will generate enough employment to kick-start important sections of the US economy through the creation of tens of thousands—perhaps even hundreds of thousands—of good, well-paying jobs for American workers.

This briefing paper raises a number of questions regarding the jobs claims promoted by the industry, questions that are serious enough to generate a high level of skepticism regarding the value of KXL as an important source of American jobs. With national unemployment levels presently (September 2011) around 9%, and the real unemployment figures considerably higher, jobs are desperately needed both to sustain families and to help the broader economy. However, it is our assessment—based on the publicly available data—that the construction of KXL will create far fewer jobs in the US than its proponents have claimed and may actually destroy more jobs than it generates.

The results presented below should also cast doubt on the recent claim made by American Petroleum Institute that the oil industry could create more than a million jobs over the next decade—if the US government would open public lands, beaches, oceans, to unlimited oil drilling. If the industry’s jobs estimates made in the context of KXL are any indication, then this broader claim should be scrutinized very carefully indeed.

Read the report (PDF).

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s. Nor do(es) the author(s) necessarily endorse the positions of the IWW.