ADP reported that manufacturers added 29,000 workers in March, the fastest monthly growth in employment in the sector since October 2014. This once again illustrates the robustness of the labor market in light of strong increases in manufacturing activity and improvements in the overall outlook. Indeed, manufacturing business leaders have hired at a healthy rate since the end of 2016, averaging nearly 15,700 per month over the past 15 months. In contrast, manufacturing employment was more sluggish in 2016, illustrating the turnaround in the labor market since then. More importantly, continued strength in job growth is expected moving forward. Read More
Key Takeaways: The manufacturing job market continues to show signs of strength, with the sector adding 14,000 workers in February. Since the end of 2016, manufacturers have hired nearly 14,700 each month—a robust pace. In the larger economy, nonfarm payrolls were up by 235,000 in February, well above the consensus estimate of around 195,000.
ADP said that manufacturers added 14,000 workers in February, once again extending the strong job gains in the sector as production and the overall outlook have improved substantially. Indeed, manufacturing business leaders have hired at a robust rate since the end of 2016, averaging nearly 14,700 per month over the past 14 months. In contrast, manufacturing employment was more sluggish in 2016, illustrating the turnaround in the labor market since then. More importantly, we expect continued strength in job growth moving forward. Read More
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
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
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.
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
ADP said that manufacturing employment growth picked up in January, with the sector hiring 15,000 workers for the month on net. It marked the fourth time in the past five months that manufacturers added workers, but firms in the sector lost 39,000 workers in 2016, according to ADP. (The Bureau of Labor Statistics has said that manufacturing employment declined by 45,000 workers last year in official data.) Manufacturers had been wary about adding to their workforces over much of the past year due to global headwinds and economic uncertainties. Hopefully, this latest release is the start of things turning around as we begin 2017 with improved signs of activity and business confidence. Indeed, job openings have remained elevated in recent months, suggesting that manufacturers are prepared to accelerate hiring and be less cautious with better demand and production figures. Read More
National Association of Manufacturers President and CEO Jay Timmons issued the following statement on the nomination of business executive Linda McMahon as administrator of the Small Business Administration:
“President-elect Donald Trump’s nomination of Linda McMahon is the type of ‘smackdown’ nomination manufacturers in America need. It says loudly and decisively that small businesses, and the manufacturers who are the backbone of the U.S. economy, are a top priority for President-elect Trump.
“From her entrepreneurial success at World Wrestling Entertainment to her unabashedly pro-growth U.S. Senate campaign, McMahon has shown throughout her career not only the fitness to lead but also the determination to build businesses and create jobs for all Americans. Her experience adds more muscle to President-elect Trump’s jobs team, as he tags yet another formidable champion for an economy that lifts everyone up and leaves no one behind.”
CONTACT: Jennifer Drogus, (202) 637-3090
ADP said that manufacturers added 15,000 net new workers in October, less than the increase of 33,000 observed in September. The sector has expanded its workforce for nine straight months, rebounding after the winter-related softness in January. Over that nine-month period, manufacturers have hired an additional 12,000 employees per month on average, or 99,000 increased workers year-to-date in the sector. Read More
The National Federation of Independent Business (NFIB) said that small business owners’ sentiment declined marginally, down from 94.1 in July to 94.0 in August. This suggests that perceptions have not shifted much over the past few months, with the Small Business Optimism Index averaging 94.0 over the past four months (May to August). This compares to an average of 90.3 for the first four months of 2013 (January to April). So, while small businesses were more confident in August than earlier in the year, growth in optimism appears to have stalled more recently.
Beyond that, the index remains below 100, its threshold for stronger growth in the small business sector. This means that small business owners continue to worry about weaknesses in the economy. The last time the NFIB’s index has a reading over 100 was October 2006.
The percentage of respondents saying that the next three months were a “good time to expand” declined from 9 percent to 7 percent. Of those saying that it was not a good time for expansion, the economy and political environment were the main reasons. Respondents said that higher taxes were the “single most important problem,” cited by 23 percent of those taking the survey. This was followed by government regulations (21 percent) and poor sales (17 percent).
On this latter item, those surveyed suggested that both earnings and sales were lower in the prior three months, with both figures dropping sharply in August. For instance, the net percentage of actual sales (e.g., those saying it was higher minus those saying it was lower) declined from -7 percent in July to -24 percent in August. The good news was that respondents were more positive about the next three months, with the net percentage of sales expectations increasing from 7 percent to 15 percent.
Employment followed a similar pattern. Over the past three months, the net percentage of actual hiring declined from -1 percent to -3 percent. Yet, net hiring expectations for the next three months were more upbeat, up from 9 percent to 16 percent.
Chad Moutray is the chief economist, National Association of Manufacturers.