The Bureau of Labor Statistics reported that the rate of hiring in the manufacturing sector in May grew to its fastest pace since November 2007. According to the latest Job Openings and Labor Turnover Survey data, manufacturers hired 332,000 workers in May, up from 314,000 in April. Expressed as a percentage of the total manufacturing workforce, that meant the hiring rate in the sector jumped from 2.5 percent to 2.7 percent, or nearly a 10-year high. Hiring has trended upward across the past nine months since it bottomed out at 268,000 in August. With that said, total separations—including layoffs, quits and retirements—also rose, up from 317,000 to 327,000, with the separations rate unchanged at 2.6 percent. As a result, net hiring (or hires minus separations) increased by 5,000 in May, rebounding from a loss of 3,000 workers in April. Read More
Manufacturing employment edged up by 1,000 in June, stabilizing a little after declining by 2,000 in May. On the positive side, it was the sixth increase in net hiring in the past seven months, with the sector adding 71,000 workers over that time frame. That stands in sharp contrast to the loss of 16,000 workers for all of 2016, and overall, the data suggest an increased willingness among manufacturers to add new workers since November. Yet, job growth in May and June in the manufacturing sector has been underwhelming, especially when compared to sentiment surveys—such as the one from Institute for Supply Management released earlier in the week—that have indicated relatively healthy expansions in employment. With that in mind, I would continue to expect better job gains moving forward, particularly given the improved demand and production outlook and stronger economic growth globally.
In June, the underlying manufacturing data were mixed. Employment among durable goods firms rose by 9,000 for the month, but this was nearly offset by a decline of 8,000 jobs for nondurable goods businesses. It was the second straight month with declines in nondurable goods employment growth, led by weaknesses in food manufacturing (down 3,300), paper and paper products (down 2,800) and apparel (down 1,000) in this release. In addition, motor vehicles and parts (down 1,300) has also continued to struggle on softer-than-desired sales year to date. Perhaps notably, employment in the food sector rose in non-seasonally adjusted data, so perhaps its decline could reflect those seasonal adjustments. Indeed, over the past 12 months, food manufacturing notched the fastest job growth in the sector, adding 28,300 since June 2016. Read More
ADP reported that manufacturing employment rose by 6,000 in June, increasing for the seventh straight month. Over that time frame (from December through June), the sector added 117,000 net new workers. This was yet another sign that we have turned a corner in the labor market, with employers accelerating their hiring in light of stronger activity and sentiment. In contrast, hiring in 2016 was flat for the year as a whole. We are hopeful the trend of stronger job growth is one that continues in the coming months.
Meanwhile, total private employment increased by 158,000 in June, which was well below the 230,000 workers added in May and off from the consensus estimate of around 190,000. Nonetheless, through the first half of 2017, nonfarm private payrolls have risen by 218,043 per month on average, which was notably higher than the 179,327 workers added each month in the second half of 2016. Beyond manufacturing, the largest employment growth in June included professional and business services (up 69,000), trade, transportation and utilities (up 30,000) and education and health services (up 28,000), among others. Construction and mining employment fell by 2,000 and 4,000, respectively, for the month. Small and medium-sized businesses (i.e., those with fewer than 500 employees) accounted for 68.4 percent of all net new workers in June.
The Bureau of Labor Statistics said that nonfarm job openings increased from 5,785,000 in March to 6,044,000 in April, a new all-time high. This continued an upward trend that began after job postings fell to 5,491,000 in August. In this release, construction, educational services, government, financial activities, leisure and hospitality and wholesale trade all saw increased openings for the month. Yet, net hiring in the overall economy slowed, down from 106,000 in March to 78,000 in April. Read More
According to the latest data from the Bureau of Labor Statistics, job growth in May was disappointing. The U.S. economy added just 138,000 net new workers in May, below the consensus estimate of 185,000 and even further from the 253,000 estimate provided by ADP yesterday. In addition, there were downward revisions to the March and April data, subtracting a total of 66,000 from those months in job gains. There were fewer Americans employed overall, down from 153.2 million in April to 152.9, a three-month low. As a result, the participation rate dropped from 62.9 percent to 62.7 percent, its lowest level since June 2016. With that in mind, we saw the unemployment rate fall once again, down from 4.4 percent to 4.3 percent, a 10-year low. Likewise, the so-called “real” unemployment rate declined from 8.6 percent to 8.4 percent, a level not seen since November 2007.
Meanwhile, manufacturers were hoping to have a sixth straight month of job gains, much as we saw in the ADP data. Instead, manufacturing employment was off by 1,000 workers in May. On the positive side, revisions to March and April data added another 3,000 employees to what was previously estimated. Overall, manufacturing employment has averaged 12,167 per month since December, which stands in sharp contrast to the loss of 16,000 workers on net seen in 2016 as a whole. As such, even with the slight decline in May employment for the sector, the general trend for manufacturing employment over the past six months has been favorable. We have seen higher expectations for job growth of late in light of a stronger outlook for demand and production. Read More
ADP reported that manufacturing employment rose by 8,000 in May, increasing for the sixth straight month. From December through May, the sector added 114,000 net new workers. This was yet another sign that we have turned a corner in the labor market, with employers accelerating their hiring in light of stronger activity and sentiment. In contrast, hiring in 2016 was flat for the year as a whole. We are hopeful the trend of stronger job growth is one that continues in the coming months.
Meanwhile, total private employment increased by 253,000 in May, well above the consensus estimate of around 185,000 and a nice jump from the 174,000 gain in April. Year to date, nonfarm private payrolls have risen by 239,696 per month on average, which is significantly higher than the 180,892 workers added each month in 2016 as a whole. Read More
The Bureau of Labor Statistics said that there were 394,000 job openings in the manufacturing sector in March, up from 364,000 in February. This matched the reading from July 2016, and each was the fastest rate since April 2006. In March, increased job openings for both durable (up from 209,000 to 229,000) and nondurable (up from 155,000 to 165,000) goods firms helped to lift the headline number, with the durable goods pace at levels last seen in July 2007. Overall, this report suggests that manufacturing leaders are accelerating their hiring intentions in light of recent improvements in the economic outlook, including better figures for demand and production. Indeed, job openings should be a good proxy of future hiring, and as such, it bodes well for improved employment data moving forward. Read More
ADP reported that manufacturing employment rose by 11,000 in April. While that was slower than the 31,000 hires made in the sector in March, it was the fifth consecutive monthly increase, with manufacturers adding 111,000 workers on net in that time frame. This was yet another sign that we have turned a corner in the labor market, with employers accelerating their hiring in light of stronger activity and sentiment. In contrast, hiring in 2016 was flat for the year as a whole. We are hopeful the trend of stronger job growth is one that continues in the coming months.
Meanwhile, total private employment increased by 177,000 in April, which was close to the consensus estimate of around 180,000. Nonetheless, it was the slowest pace of hiring since October, down from 255,000 in March. Year-to-date, nonfarm payrolls have risen by 237,331 per month on average, which is significantly higher than the 180,892 workers added each month in 2016 as a whole. Read More
The Bureau of Labor Statistics said that total hires in manufacturing in February rose to the highest level since June 2008. The sector hired edged up from 304,000 in January to 305,000 in February. This represented notable progress from just 268,000 six months ago. With that said, the underlying data were mixed in February, with nondurable goods hiring up from 139,000 to 149,000 but hiring for durable goods firms down from 165,000 to 156,000. At the same time, total separations – which include quits, layoffs and retirements – decreased from 304,000 to 292,000. Separations were lower for both durable (down from 163,000 to 155,000) and nondurable (down from 141,000 to 137,000) goods manufacturers. Overall, net hiring (or hires minus separations) improved from zero in February to 13,000 in March, its fastest pace in seven months. Read More
The Bureau of Labor Statistics said that manufacturing employment increased for the fourth straight month, with the sector adding 11,000 workers in March. This was an encouraging sign that the recent uptick in optimism in the sector has begun to translate into better job growth, especially when contrasted with the declines in employment seen as recently as last autumn. Indeed, manufacturers lost 16,000 workers on net in 2016 as a whole, the first annual decline since the Great Recession. In contrast to that, manufacturing employment has averaged 16,750 per month since December. NAM President and CEO Jay Timmons spoke about the shift in attitudes in his statement about the jobs numbers, stating that manufacturers are upbeat that “positive change is coming,” largely on expectations about pro-growth policies from the new Trump Administration. Read More