The Bureau of Labor Statistics reported earlier today hat the number of manufacturing separations exceeded hirings in May, with 259,000 hires and 268,000 separations, for the first time since last October. The difference between these two figures has narrowed since January, and May numbers correspond to weaknesses in the manufacturing sector. These include supply chain disruptions stemming from the Japanese disaster, rising energy and raw materials prices, and falling consumer confidence.

For the economy as a whole, the hiring and separations rate are roughly equivalent at 3.1 percent of the nonfarm workforce. There were 4,070,000 hires to 4,059,000 separations nationally. While the hiring rate was essentially unchanged, the number of separations rose by 266,000. Higher layoff and quit rates contributed to the increase in separations for the month. This is especially true in the West and Northeast; meanwhile, hiring continues to outpace separations in the South and Midwest.

The number of job openings rose from 2,953,000 in April to 2,974,000 in May, with the rate remaining at 3.0 percent of the workforce in each month. Manufacturers, however, posted 3,000 fewer job openings in May (to 223,000 from 226,000).

Overall, these numbers confirm much of what we already knew about the “cooling” of the manufacturing sector in the months of March, April, and May. Some of the separations among manufacturers were temporary due to extenuating circumstances, and yet, the more recent numbers from June which were released last week have shown this weakness in job creation continuing.

Moving forward, I would expect the number of separations to stabilize and fall once the economy improves. With that said, hiring has been stalled for some time, and it should be a top priority for policymakers to get the job engine churning again.

Chad Moutray is chief economist, National Association of Manufacturers.

In a news release recently issued by the EPA, the agency has announced a 30 day extension of the public comment period on the proposed mercury and air toxics standards rule. Stays, delays and extensions seem to be common place lately with the EPA regarding their aggressive and unpopular regulatory agenda that has drawn opposition from industry leaders. There is a growing concern about the effect these regulations will have on future expansion, investment and job creation in this fragile economy.

The EPA even openly acknowledges that pressure from members of Congress had a direct impact on their decision. Concern regarding this rule crossed party lines, with members such as Rep. John Dingell (D-MI) to Senator John Brarrasso (R-WY) weighing in, questioning the rule and asking for an extension to examine it more closely. A Reuters article discusses congressional involvement in further detail.

Coverage of the extension:

Bloomberg: “EPA Extends Comment Time on Mercury and Air Toxics Proposal”
The Hill: “EPA Extends Comment Period on Proposed Mercury Rule”
Reuters: US Extends Comment Time on Power Plant Toxics Rule.”

There is little doubt that the pressure has been mounting against these proposed regulations. Although they say the extension of the public comment period will not affect the timing of the final rule, it is clear that the EPA is responding to the concerns of manufacturers and lawmakers regarding the ability to comply with these regulations — and the cost of them — not just in dollars, but also the human cost of the number of pink slips these regulations would generate.

Less than a month after the EPA announced a stay on the excessive and burdensome Boiler MACT rule, the EPA confirmed though a spokesman that there will be another delay on a proposed rule placing restrictions on greenhouse gas (GHG) emissions from power plants.

Coverage of the delay:

• NY Times: E.P.A. Plans Delay of Rule on Emissions
• National Journal: EPA to Delay Climate Rules

Manufacturers are pleased to see that various rules containing unrealistic regulations are being delayed and that industry voices are receiving more attention. The announcement of the Boiler MACT stay and the delay of the draft power plant rules show that the EPA is listening to the concerns of job creators on the impact of the regulations they seek to implement.

Although the EPA announced that the final rule is still on schedule to be published in May of 2012, this delay signals a step in the right direction. Rushed and unattainable proposals are unacceptable to the business community and the American people. Additionally, they are counterintuitive to job creation and economic growth.

The EPA has pursued an aggressive regulatory agenda, creating barriers for job creation, future investment and expanded operations by placing burdensome and costly rules on manufacturers.

Coal-fired power plants are the latest facilities to face EPA’s most recent round of regulations. Last week, one of the largest electricity providers, the American Electric Power Company announced that they will have to shutter five plants to comply with these absurd mandates.

Increasing the cost of energy and killing jobs won’t stimulate the economy or help reduce unemployment.

An editorial in today’s Wall Street Journal cuts right to the chase:

The agency estimates that the utility rule will cost $10.9 billion annually but will yield as much as $140 billion in total health and environmental benefits. Sounds like a deal. But most of those alleged benefits are indirect—i.e., not from the mercury reductions that the rule is supposed to be for. Rather, they come from pollutants (“airborne particles”) that the EPA already regulates under other parts of the Clean Air Act. A good analogy is a corporation double-counting revenue.

The Journal concludes that the EPA is imposing “willful damage” and “the least Congress can do is force the EPA to delay the final rule…though a better option would be to junk it.”

This morning the Republican Caucus released a new economic plan, America’s Job Creators: Empowering Families, Small Businesses and Entrepreneurs.

Manufacturers are pleased to see that these critical economic issues are being discussed in Congress and believe many of the proposals put forth will address the need to establish a level of certainty for job creators to invest in the future, expand, and enhance America’s global competitiveness.

Key points of the Plan Include:

·         Pass the pending Free Trade Agreements with South Korea, Panama and Columbia

·         Address the Tax Code to Help Job Creators

·         Encourage Economic Growth

·         Maximize Domestic Energy Production to Ensure an Energy Policy for the 21^st Century

·         Pay Down America’s Unsustainable Debt

This proposal serves as a starting point for congressional debate moving forward. Manufacturers believe Congress must adopt a strategy that will reduce the aggressive regulatory burden of the federal government and reform our tax code, lowering the corporate tax rate for manufacturers large and small, while at the same time protecting those businesses that file as individuals as well.

Manufacturers are pleased to see the proposal and look forward to the coming congressional debate on these important issues.

For more on the plan:

·         PDF of the Full Plan

·         Information on the Plan

·         Summary on the Plan

·         1-Pager on the Plan