"We document the consequences of real exchange rate movements for the employment, hours, and hourly earnings of workers in manufacturing industries across individual states. Exchange rates have statistically significant wage and employment implications in these local labor markets. The importance and size of these dollar-induced effects vary considerably across industries and are more pronounced in some U.S. regions. In addition to demonstrating the importance of exchange rate shocks, we confirm prior research results showing that relatively strong local conditions drive up wages in local industries, while anticipated future (positive) local shocks reduce current wages"--Federal Reserve Bank of New York web site.