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manufacturing employment Archives - Shopfloor

Manufacturers Added 36,000 Workers in August, the Fastest Monthly Gain in 5 Years

By | Economy, Shopfloor Economics, Shopfloor Main | No Comments

The Bureau of Labor Statistics said that manufacturers added 36,000 net new workers in August, its fastest monthly gain in five years and increasing for the third consecutive month. In addition, the June and July data were revised higher, increasing employment in the sector by a total of 19,000 more than originally estimated. As such, manufacturing was a bright spot in the latest jobs data—a sign that the sector has rebounded from global headwinds over the past two years.

Indeed, over the past nine months, manufacturing employment has risen by 155,000, averaging 17,222 per month. That is a definite improvement following the loss of 16,000 workers on net for 2016. Moreover, total manufacturing employment rose to 12.48 million, rising by 1.03 million since the Great Recession and its highest level since January 2009.

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Just the Facts: Tax Reform Will Boost Manufacturing

By | Shopfloor Main, Taxation | No Comments

A recent study from the Institute for Policy Studies seems to assert that businesses with lower tax rates were not job creators. Specifically, they analyzed “92 publicly held U.S. corporations that reported a U.S. profit every year from 2008 through 2015 and paid less than 20 percent of these earnings in federal corporate income tax.” They then assert that those 92 firms lost 1 percent of their workforce in that time frame versus a 6 percent gain for the U.S. private sector as a whole.

The authors use this analysis to suggest that pro-growth tax reform will not produce the positive employment benefits that its advocates, including the NAM, assert. But, this misses the point. You cannot extrapolate the tax burdens of 92 firms to the larger economy, mostly because there are a variety of reasons why those individual firms might have paid lower tax rates in those years, including deductions for losses in prior years.

The important point—missed in this paper—is that American businesses are at a competitive disadvantage globally, with marginal tax rates in the United States higher than any other major economy. We need pro-growth tax reform—an idea that has bipartisan support. Read More

ADP: Manufacturing Employment Rebounded in August, Adding 16,000 Workers

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According to ADP, after slightly declining by 1,000 in July, manufacturing employment rebounded in August, with the sector adding 16,000 net new workers for the month. This was the fastest pace since March, and since November, manufacturers have increased their workforce by an average of nearly 14,650 per month. That continues to represent a turnaround relative to one year ago, with manufacturing employment down by 19,000 in August 2016 and hiring flat for 2016 as a whole. We hope this bodes well for continued job growth moving forward. Read More

Manufacturing Job Openings Bounced Back in June; Nonfarm Postings at New All-Time High

By | Economy, Shopfloor Economics, Shopfloor Main | No Comments

The Bureau of Labor Statistics reported that manufacturing job openings bounced back from 350,000 in May—its slowest pace so far this year—to 388,000 in June. That was the best number since March’s reading of 404,000, which was a 16-year high. In June, both durable (up from 201,000 to 214,000) and nondurable (up from 149,000 to 174,000) goods firms had more job postings. Openings in the sector have averaged 372,000 year to date in 2017, an improvement from the average of 342,000 for all of 2016. We would expect stronger job openings data moving forward, especially given recent improvements in the economic outlook for the sector, and this should lead to better hiring figures. Read More

Manufacturers Have Added 16,000 Jobs in July, Averaging 12,500 Workers per Month Since November

By | Economy, Shopfloor Economics, Shopfloor Main | No Comments

The Bureau of Labor Statistics reported that manufacturers added 16,000 net new workers in July, extending the gain of 12,000 workers June. (June was estimated originally to be a gain of just 1,000 workers, and the May data were also revised from a decline of 2,000 to 0.) The July increase in manufacturing was the fastest since February, and the sector has now increased employment in seven of the past eight months. Over that eight-month span (since November), manufacturers have averaged 12,500 new jobs per month—definite improvement from the loss of 16,000 workers on net in 2016. In July, there were 12,425,000 manufacturing workers. At the same time, average weekly earnings for manufacturing workers rose from $1,086.30 in June to $1,092.03 in July, up 2.8 percent over the past 12 months from $1,062.02.

In another sign that manufacturing jobs are on the rise, Toyota announced today that it will build a $1.6 billion U.S. assembly plant to develop electronic vehicle technologies. The plant opening in 2021 will produce up to 300,000 vehicles per year and employ 4,000 manufacturing workers. Read More

ADP: Manufacturing Employment Declined in July for the First Time Since November

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ADP reported that manufacturing employment declined by 4,000 in July, declining for the first time since November. Overall, the sector has added 98,000 net new workers year-to-date. Despite the weaker data in this report, manufacturers have noted better employment growth this year than last, 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. With that in mind, we are hopeful that the trend of stronger job growth returns in the coming months.

Meanwhile, total private employment increased by 178,000 in July, pulling back somewhat from the 191,000 workers added in June but mostly in-line with consensus expectations. Nonfarm private payrolls have risen by 217,458 per month on average, which was notably higher than the 179,327 workers added each month in the second half of 2016. As such, the labor market has strengthened year-to-date, which is promising. The largest employment growth in July included professional and business services (up 65,000), education and health services (up 43,000), trade, transportation and utilities (up 24,000), leisure and hospitality (up 15,000) and financial activities (up 13,000). Small and medium-sized businesses (i.e., those with fewer than 500 employees) accounted for nearly three-quarters of all net new workers in July.   Read More

Hiring Rate for Manufacturers at Nearly a 10-Year High in May

By | Economy, Shopfloor Economics, Shopfloor Main | No Comments

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 in June Rose by 1,000

By | Economy, Shopfloor Economics, Shopfloor Main | No Comments

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: Manufacturing Employment Rose for the Seventh Straight Month, Up by 6,000 in June

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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.

Nonfarm Job Openings Exceed 6 Million for the First Time Ever

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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