The Bureau of Labor Statistics has said that manufacturing job openings rose significantly, up from 259,000 in April to 310,000 in May. This is according to the latest Job Openings and Labor Turnover Survey (JOLTS) data. Essentially, job postings have returned to where they stood in March. The higher level suggests that manufacturers could increase their net hiring in coming months, which is a positive sign.

With that said, current hiring levels were essentially flat, down from 260,000 to 258,000 for the month. This is 2.2 percent of the total manufacturing workforce, a rate that has been the same since February. Meanwhile, manufacturing separations – which include layoffs, retirements, and quits – were up slightly from 239,000 to 241,000, or 2 percent of the manufacturing workforce. This suggests net hiring of 17,000 for May, which is down from 21,000 in April.

Numbers for the overall economy mirrored those of the manufacturing sector. The number of job openings rose from 3,477,000 to 3,642,000. (Of potential interest: some of this jump could be related to seasonal adjustments, as the non-seasonally adjusted data was slightly lower for the month.) Hiring and separations were also higher, but net hiring was lower in May than in April.

These numbers show a labor market that has weakened considerably in recent months, and yet, the higher job openings figure suggests some degree of cautious optimism looking forward. The key will be how many of these postings will translate into actual jobs. This will hinge on a growing economy and increased production levels, or stated differently, manufacturers will pick up hiring again once current uncertainties about economic growth are eased.

Chad Moutray is chief economist, National Association of Manufacturers.

The Census Bureau reported that durable goods orders rose 1.1 percent in May, rebounding from declines in both March and April. For the second month in a row, transporation orders were strong, up 2.7 percent with the largest gains in aerospace. Excluding transportation goods, new orders would have risen by 0.4 percent.

Along these lines, core capital goods (or nondefense capital goods excluding aircraft) rose 1.6 percent for the month. Other sectors with strength in May include machinery (up 4.1 percent), computers and related products (up 3.3 percent), communications equipment (up 2.3 percent), and electronic equipment and appliances (up 1.1 percent). Metals industries experienced declines, with primary metals orders down 1.5 percent and fabricated metal products down 0.2 percent.

Meanwhile, shipments of durable goods rose 0.7 percent in May. This was the same rate as was observed in April and the third consecutive monthly increase. Transportation dominated these numbers, as well, particularly in the aerospace categories. Other sectors which did well, mirroring those listed above for new orders. Motor vehicle shipments rose 0.4 percent, slower than the growth rates of March and April. Inventories rose by 0.5 percent, continuing their long streak of gains, with unfilled orders unchanged.

Overall, these numbers are welcome news. With so many other indicators reflecting weaknesses in the manufacturing sector, durable goods growth appears to be strengthening after signficant headwinds in March and April. Transportation orders account for the bulk of this gain, but the increases were not limited to motor vehicles and airplanes. Given the importance of the durable goods sector over the past couple years in our recovery, it will be vital for us to get this sector growing strongly again.

Chad Moutray is chief economist, National Association of Manufacturers.

The Automatic Data Processing (ADP) report released this morning found that 133,000 net new jobs were added to the economy in May. This is slightly higher than the revised increase of 119,000 in April. Almost all of these gains stemmed from the service sector. Mirroring past reports, all but 9,000 of the net increase came from small and medium-sized businesses (e.g., those with less than 500 employees).

Reflecting recent weaknesses, manufacturers shed 2,000 workers. This was the second consecutive decline, with a 6,000 worker decrease observed in March. Still, even with these losses, the year-to-date gain is 55,000. Note that ADP’s estimates are lower than the official data from BLS, with 167,000 net new jobs added to the sector in the past five months.

Tomorrow, the Bureau of Labor Statistics will release the latest government statistics on employment. Last month, manufacturers added 20,000 workers in April. I would expect the increase to be lower than in April, but we will have to see if BLS finds a decline as well.

Chad Moutray is chief economist, National Association of Manufacturers.