New Job Openings and Labor Turnover Survey (JOLTS) data from the Bureau of Labor Statistics show that manufacturing hiring was up in December, mirroring other employment data released by the agency. There were 264,000 job openings in the sector in December, up from 242,000 in November. The increase occurred in both the durable and nondurable goods sectors.

In addition, there were 261,000 hires and 226,000 separations in the month. This suggests net hiring of 35,000, an improvement from the 19,000 gain in November. This can be seen in the attached graphic.

For the macroeconomy as a whole, the number of job openings rose from 3,118,000 in November to 3,376,000 in December – an increase of 258,000. The hiring rate is currently 2.5 percent of the labor market, up from 2.3 percent in November. This brings it back to its level in September, right before the falloff in October in labor market activity. Despite the uptick, the hiring rate was little changed in December from November.

Given that these numbers overlap with strong improvements in U.S. employment in December and January, there is little new news here. The manufacturing jobs picture is improving, and yet, overall, hiring remains a challenge. With modest growth in production this year, we will hopefully see increased hiring in the coming months.

Chad Moutray is Chief Economist, National Association of Manufacturers.

Great news out of Illinois today! Chrysler has announced that it is hiring 1,800 new workers and stepping up production at their plant in Belvidere. It’s a good story that coincides with the news that the U.S. economy gained 50,000 manufacturing jobs in the last month.

Approximately 500 of the new employees will focus on the new Dodge Dart while others will work on existing models.  The new hires represent a 66% increase in plants workforce and all are expected to be hired by the third quarter this year.

Additionally, it is expected to create hundreds of other jobs at parts suppliers and other vendors – part of the ripple effect that NAM President Jay Timmons spoke about during his January “State of Manufacturing” speech in Cleveland. He told those in attendance that:

“For every dollar invested in manufacturing, $1.35 of indirect economic activity is generated – the highest multiplier effect of any economic sector, by far. And for every job created in the manufacturing sector, up to another three jobs are created elsewhere in the economy.”

The addition of these jobs are due in large part to a pro-growth business environment for Chrysler – part of the polices that NAM has said are essential to achieve a Manufacturing Renaissance. Hopefully policy makers are paying attention to the results.

U.S. employment numbers jumped significantly higher in January, according to the Bureau of Labor Statistics, with the unemployment rate dropping to 8.3 percent.  Moreover, nonfarm payrolls grew by 243,000, and manufacturers added 50,000 net new workers. These gains were greater than expected, and certainly, much higher than the estimates from ADP released two days ago. Consensus estimates had been for around 150,000 net new jobs with the unemployment rate remaining around 8.5 percent.

These numbers continue to affirm the rebound and importance of manufacturing to our economic recovery. There were 82,000 net new jobs created in the sector in the past two months. This is definitely a sign that manufacturers have picked up their activity of late. Moreover, manufacturers have added 287,000 of the 2,063,000 net new nonfarm payroll jobs generated in the last 13 months (since December 2010); this suggests that nearly 14 percent of all of the jobs generated in that time frame stemmed from manufacturing.

As I noted last month, though, we would be remiss without mentioning the fact that employment remains a significant challenge, even with today’s good news. The “real” unemployment rate – which includes discouraged and underemployed workers – is now 15.1 percent, down from 15.2 percent in December and 16.1 percent last year at this time.

There are currently 2.81 million Americans who are classified as “marginally attached to the labor force,” with 1.06 million being discouraged workers. This is up slightly from last month. (The civilian labor force also grew last month, from 240.58 million to 242.27 million.)

Looking specifically at the January 2012 figures, the bulk of the new jobs in manufacturing came from the durable goods sector, which was up 44,000 for the month. The largest gains came in fabricated metal products (up 10,900), machinery (up 10,500) and transportation equipment (up 10,300). Nondurable goods sector employment rose by 6,000 in January. In that sector, the strongest growth came in the chemicals (up 2,200), printing and related support services (up 1,700) and beverages and tobacco products (up 1,300) sectors.

The average workweek for manufacturers rose from 40.6 hours in December to 40.0 hours in January. The average amount of overtime edged slightly higher from 3.3 to 3.4 hours. Therefore, the average weekly earnings for manufacturing workers rose from $969.93 to $977.51.

Overall, these numbers show renewed strength in the domestic economy, with employment growth in almost every major industrial sector except information, financial services and government. It mirrors other recent economic indicators showing an uptick in activity since October. Moreover, several sentiment surveys suggest that manufacturers are optimistic about future production and employment in 2012, which should bode well for this year’s numbers.

Yet, it is important to remember that significant headwinds exist both in Europe and in the U.S. The labor and housing markets – while improving – still have a long way to go before they are healthy, and consumer and business optimism is mixed with persistent anxieties. Still, we will take good news when we can get it.

Chad Moutray is chief economist, National Association of Manufacturers.

Representative Henry Waxman’s (D-CA) political games on the Keystone XL pipeline project is only setting Americans back in their quest to find jobs — good paying jobs.  Continued attempts by the Ranking Member of the House Energy and Commerce committee to cause a distraction by focusing on whether or not certain companies stand to benefit from this project is deplorable.  Americans stand to benefit.  More than 20,000 jobs will be created in manufacturing and construction, not to mention the 118,000 spin-off jobs that will also be created.  Manufacturers use one-third of our nation’s energy supply and the construction of the pipeline will provide a new source of affordable energy to manufacturers.

So let’s stop playing games. Politicians can no longer claim the need to create jobs for Americans while simultaneously using their position to stand in the way of common sense projects that would do exactly that.  America is prosperous because the private-sector fuels our economy and creates jobs — this Keystone XL pipeline project is no different.

Jay Timmons is president and CEO, National Association of Manufacturers.

Manufacturers were well represented on Capitol Hill today as NAM Executive Committee member and Chair of the Small and Medium Manufacturers Group Kellie Johnson, President of Ace Clearwater Enterprises, testified on behalf of small businesses and manufacturers.

Kellie Johnson, NAM Board Member, testifies before the House Ed & Workforce Committee

The House Committee on Education & Workforce held their first hearing of 2012 entitled, “Expanding Opportunities for Job Creation”. Ms. Johnson was chosen to testify because of her insight into state initiatives for job creation, the effects of federal policies on job creation, and the challenges facing small businesses within the current economic environment.

While in front of the powerful House committee, Ms. Johnson highlighted the ways in which federal regulations burden small and medium manufacturers differently than their larger counterparts, specifically citing recent decisions and regulations from the National Labor Relations Board (NLRB), Occupational Safety and Health Administration (OSHA), and the Environmental Protection Agency (EPA).

She hammered home the point by stating, “The uncertainty of our regulatory and economic environments makes it almost impossible for short or long-term business growth, especially for a capital intensive industry like manufacturing. To be compliant with the newest regulations and rules takes time away from running the day-to-day operations of a business. Resources are constantly rerouted away from customers, resulting in lower productivity and lower customer satisfaction.”

Additionally, Ms. Johnson took the opportunity to speak about the impediments to job creation arising from regulatory overreach from the viewpoint of a small manufacturer was a chance to emphasize the importance of manufacturing to economic growth. To read her full testimony click here.

Daimler Trucks North America (DTNA) announced yesterday that it will be adding a second shift in order to ramp up production at its Freightliner Truck Manufacturing Plant in Cleveland, N.C. The move will create more than 1,100 new jobs by the end of 2012, an increase in personnel of 72 percent.

DTNA says the new jobs will “nearly double the daily production rates at the Cleveland plant by October 2012.”

DTNA is the largest Freightliner Trucks manufacturing plant in the U.S. and exclusively produces Class 8 on-highway truck models. In addition to this welcome news; DTNA will also be hiring 100 new workers at its nearby Components and Logistics Plant in Gastonia, N.C.

It’s great to see companies like Daimler Trucks North America expanding and creating quality manufacturing jobs. Manufacturers continue to lead the economic recovery and are looking for pro-growth policies from Washington which will enable them thrive and create more jobs. 

News coverage on DTNA’s announcement:

• Reuters: Daimler Trucks to add 1,200 jobs in U.S. by September
• Charlotte Business Journal: Daimler Trucks North America to add 1,200 jobs in Charlotte region

Yesterday, Under Secretary of Commerce for International Trade, Francisco Sanchez spoke at the NAM’s Council of Manufacturing Associations (CMA) winter meeting.

Under Secretary Sanchez reiterated calls that we are at the beginning of a “manufacturing renaissance” and talked about the number of quality jobs created in the industry over the course of the last two years. He highlighted a Department of Commerce report which said that in 2009 alone, manufacturing made up more than 11 percent of GDP.

In order to build off the successes of manufacturing, and to really enter into a manufacturing renaissance, we have released our own four-point plan to guide the process. A Manufacturing Renaissance: Four Goals for Economic Growth addresses both the areas where we are thriving and the areas that need more attention.

Among those issues are exports. The NAM has been a strong supporter of the president’s goal to double exports by 2015. Manufacturers play an imperative role in that effort and Under Secretary Sanchez says “the correlation between jobs, exports and manufacturing is clear.” We agree.

Under Secretary Sanchez also spoke about the New Market Exporter Initiative. This initiative helps U.S. businesses find new markets, opportunities for export training and new contacts with distributors and representatives to expand their business.

The topic of manufacturing has been at the forefront of the Republican presidential debates and recent remarks by President Obama. It is encouraging to see so much attention on the industry that has led our economic recovery and continues to do so.

“U.S. manufacturers are vital to our economy and future growth.  It’s work that I’ve always valued.  My father ran a candy factory.  He had to make payroll.  He had to monitor inventory.  He had to sell and market products.  From his experience, I know how a strong manufacturing sector benefits workers, communities and our nation.” – Under Secretary Sanchez

New details were released by TransCanada today on the potential job creation that awaits once the Keystone XL pipeline is approved. The data shows that the pipeline will create 20,000 jobs – 7,000 specific to manufacturing.

December’s employment report showed a lower unemployment rate of 8.5 percent. While this is good news, it does not restore the certainty that Americans need. The Keystone XL pipeline is the key to a national energy plan that strives for affordable, reliable and secure energy.

TransCanada boasts the residual effect of the pipeline.

“Hundreds of jobs will be created through requirements for fuel, coating materials, welding supplies, concrete materials, geo-textile materials, pipeline weights, native seed materials for reclamation, cathodic protection materials, crushed rock, sediment barrier materials, valve and pigging assemblies, field trailer manufacturing, construction mats, power facility materials, aggregate manufacturing, road construction materials, water and waste facility manufacturing, fencing materials, communication infrastructure, bridge construction materials and many others.”

The ball is now in President Obama’s court. Congress gave President Obama 60 days to deny that the Keystone XL pipeline is in our nation’s best interest. Manufacturers, who are excited about this opportunity to invest and expand, remain waiting on the sidelines.

Employment jumped significantly in December, according to Automated Data Processing (ADP), with 325,000 net new nonfarm private payrolls added for the month. The service sector accounted for 273,000 of those gains, with the goods-producing sector adding 52,000.

This was the largest positive monthly change since ADP began calculating payroll changes in December 2000; in this recent recovery, the second-largest monthly change was December 2010, which experienced a gain of 246,000 net new jobs.

Manufacturing employment was also much higher, adding 22,000 net new jobs in December. This matched its gain from June, ending a five-month malaise (at least for now) of slow job growth. Hopefully, this is a sign of better things to come as we move into 2012.

As with previous ADP reports, the bulk of the net new jobs stemmed from small and medium-sized payrolls (e.g., those with less than 500 employees). Of the 325,000 net new jobs created in December, 148,000 stemmed from small establishments with less than 50 employees, and 140,000 flowed from medium-sized entities with 50 to 499 employees.  

These numbers suggest that employment growth has picked up its pace from recent weaknesses. For manufacturers, these results mirror regional sentiment surveys which have found an increased ability to start hiring again.

A similar finding will probably be found in tomorrow’s employment report from the Bureau of Labor Statistics; although, the current consensus forecast for nonfarm payrolls from BLS is closer to a net increase of 150,000 (rather than ADP’s larger figure). In addition, economists will be closely watching the unemployment rate, which unexpectedly dropped to 8.6 percent in November.

Chad Moutray is chief economist, National Association of Manufacturers.

In a roundtable discussion at the NAM headquarters today NAM President and CEO Jay Timmons and PwC U.S. industrial products leader Bob McCutcheon released a report that looks at the tremendous economic benefit and the jobs that will be created by shale gas exploration and production.

The report titled Shale Gas: A renaissance in US manufacturing? estimates that shale gas could result in one million manufacturing jobs by 2025 and more than $11 billion in cost savings:

“Lower feedstock and energy costs could help US manufacturers reduce natural gas expenses by as much as $11.6 billion annually through 2025… US manufacturing companies could employ approximately one million more workers by 2025 due to benefits from affordable energy and demand for products used to extract the gas.” (continue reading…)