The United States president, Donald Trump has been backing up his $110 billion arms deal with Saudi with the statement that the deal would create 5,00,000 jobs which has raised several questions against him and the deal itself.
As per a report released by Reuters, it had an opportunity to see an internal document from Lockheed Martin (LMT.N) which had forecast ed creation of less than 1,000 new positions by the contractor and the newly created positions would generate about $28 billion of goods in the deal.
The prediction of Lockheed is not in support of the President’s statement and estimates that only about 10,000 job positions would be created in Saudi Arabia, and if the entire package comes together then it would also retain the existing 18,000 workers of the United States.
As stated by a person who is familiar with the planning of the United States defence company Raytheon Co., if the orders from the Saudi were executed that it would work towards sustaining more than 10,000 jobs. But the drawback would be that the number of jobs created as a result of this would be a small fraction of that number.
Reuters tried contacting Lockheed Martin Corp for comments on the matter but they declined the offer. Toby O’Brien, who is the Chief Financial Officer of Raytheon stated last week that there is a reported growth in the overall hiring but he did not pin point any particular program which showed prominent results of it.
Reuters also tried contacting The White House for commenting on the same matter but it did not respond to their requests.
President Trump is emphasizing more on jobs because during the presidential election campaign he had said boldly that he possesses the capability to create jobs especially the manufacturing ones which are also high paying and now it is important for him to stand by his words.
Source: Reuters, DailyOnline
