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The use of participle forms is redundant.
This sentence does not draw any comparisons between the dominance of the automobile industry and the employment of workers.
It just states a past event without any significant causal relationship or correlation,so to avoid confusion, and to keep the meaning intact, choose E.
E is the answer.
Hope this helps!
:D
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Could you explain the use of 'with' in E after the comma?
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Due to automobile-related jobs in the 1920's employing one of every eight workers, the automobile industry dominated the American economy.

(A) Due to automobile-related jobs in the 1920's employing one of every eight workers, the automobile industry dominated the American economy. Idiomatically, "due to" must only be used to modify a noun. Here it is modifying an entire clause. Eliminate.

(B) One out of every eight workers were employed in automobile-related jobs in the 1920's, with the American economy being dominated by the automobile industry. The sentence is talking about one (out of every 8) worker, and must hence be followed by a singular verb "was" and not "were". Eliminate.

(C) The automobile industry dominated the American economy in the 1920's, with one of every eight workers having been employed in automobile-related jobs. "having been" in the present perfect tense implies that the event still continues till the present - the sentence does not imply that. Eliminate.

(D) In the 1920's, the automobile industry had dominated the American economy, when one out of every eight workers was employed in an automobile-related job. "had dominated" in the past perfect tense requires either two events in the past, or needs to occur before a time marker, neither of which is the case here. Eliminate.

(E) In the 1920's, the automobile industry dominated the American economy, with one out of every eight workers employed in an automobile-related job. Correct answer.

Hope this helps.
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Due to automobile-related jobs in the 1920's employing one of every eight workers, the automobile industry dominated the American economy.

(A) Due to automobile-related jobs in the 1920's employing one of every eight workers, the automobile industry dominated the American economy
Due to ….employing , verb issue. A is out

(B) One out of every eight workers were employed in automobile-related jobs in the 1920's, with the American economy being dominated by the automobile industry.
One out of ….. was - is correct. B is out

(C) The automobile industry dominated the American economy in the 1920's, with one of every eight workers having been employed in automobile-related jobs.
having been - error . C is out

(D) In the 1920's, the automobile industry had dominated the American economy, when one out of every eight workers was employed in an automobile-related job
Domination of the AI and the employment of workers in automobile industry happened at the same time. So, time frame should be same . The AI had …., when …. Was . This changes the meaning of the sentence

(E) In the 1920's, the automobile industry dominated the American economy, with one out of every eight workers employed in an automobile-related job.
Time frame is correct. No errors . E is the best choice

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EducationAisle - Can you please give more details on the option D, I picked this by mistake. I want to understand the role of "When", does that mean two things need to happen on the same time? Is this why use of PP is wrong? Because as per the meaning, the industry dominated same time as when the people were employed so both past tense would make sense.

Also, I did not pick E, because of the "with" modifier, what are some use of "with" modifer for GMAT that is correct? Thanks!
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IN2MBB2PE
EducationAisle - Can you please give more details on the option D, I picked this by mistake. I want to understand the role of "When", does that mean two things need to happen on the same time? Is this why use of PP is wrong? Because as per the meaning, the industry dominated same time as when the people were employed so both past tense would make sense.
You are right; both should be in Past tense, but had dominated in D is "past perfect" and hence, incorrect.

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Also, I did not pick E, because of the "with" modifier, what are some use of "with" modifer for GMAT that is correct? Thanks!
This post does a decent job at summarizing the most important usages of with.
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nikhilsehgal
Due to automobile-related jobs in the 1920's employing one of every eight workers, the automobile industry dominated the American economy.

(A) Due to automobile-related jobs in the 1920's employing one of every eight workers, the automobile industry dominated the American economy.

(B) One out of every eight workers were employed in automobile-related jobs in the 1920's, with the American economy being dominated by the automobile industry.

(C) The automobile industry dominated the American economy in the 1920's, with one of every eight workers having been employed in automobile-related jobs.

(D) In the 1920's, the automobile industry had dominated the American economy, when one out of every eight workers was employed in an automobile-related job.

(E) In the 1920's, the automobile industry dominated the American economy, with one out of every eight workers employed in an automobile-related job.

choice d suffers 2 mistakes.

if "had dominated" becomes "dominated", "when " is still wrong. we dont want to to have a time relation between two actions . when one out of eight workers was employed, the auto industry dominated the economy. we want another action/event which elaborate the main action as choice E do.

the second mistake is

when one out of eight workers was employed, the auto industry had dominated. this means dominating happen /finish before one out of eight workers was employed. this is not logical.

"in 1920's " can go with "had done" logically. we dont need "by 1920's" to go with "had done".
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