Media Tout Ryan Budget's Inflated Keystone XL Jobs Claims
Media are touting the claim from Rep. Paul Ryan's new budget plan that constructing the Keystone XL pipeline would create nearly 140,000 jobs, but that figure comes from exaggerating a heavily criticized, industry-funded analysis.
Reuters uncritically repeated the Ryan budget's assertion that constructing Keystone XL would create “20,000 direct jobs and 118,000 indirect jobs.” Fox News host Sean Hannity later claimed the pipeline would create “nearly 140,000 jobs,” while promoting the Ryan budget, which would likely raise taxes on the middle class:
But that number comes from inflating an analysis funded by TransCanada, the company trying to build the pipeline. That study, which has been called "dead wrong," "meaningless," and "flawed and poorly documented" by independent analysts, claimed that Keystone XL would create “118,000 person-years of employment.” In other words, if one person holds a job for two years, that is counted as two “person-years of employment.” And as a TransCanada spokesman eventually clarified to Huffington Post reporter Tom Zeller, the 118,000 figure already includes the 20,000 direct construction and manufacturing job-years that TransCanada claims will be created. Those numbers are also now outdated, as they included jobs associated with the southern portion of the pipeline, which is already under construction.
Independent analyses have found that the pipeline would create far fewer jobs. A 2011 report by Cornell University's Global Labor Institute found that the TransCanada estimate ignored the potential economic consequences of the pipeline -- which would carry tar sands oil from Canada to Gulf coast oil refineries primarily for export -- including the possibility of a spill. A State Department analysis found that the pipeline would create less than 4,000 construction jobs for the 1- to 2-year construction period, and only 35 permanent jobs. In total, that study found that Keystone XL would create 42,100 direct, indirect and induced average annual jobs during the 1- to 2-year construction period. As their exaggerated jobs claims have been exposed, conservative media have struggled to stay on the same page about how many jobs the pipeline would create: