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.

The Bureau of Labor Statistics reported that regional and state employment numbers were “generally lower in November.” This should not be a surprise given that the national unemployment rate fell to 8.6, as reported earlier this month. Nevada continues to have the highest unemployment rate in the country at 13.0 percent, down from 13.4 percent in October. North Dakota’s 3.4 percent unemployment rate makes it the lowest.

New York and Texas had the largest monthly increases in nonfarm employment with 29,500 and 20,800 net new jobs, respectively. They were followed by South Carolina (up 16,600), Georgia (up 13,000) and New Jersey (up 10,300). The two states with the weakest monthly job growth were Wisconsin (down 14,600) and Minnesota (down 13,700).

Looking just at manufacturing employment, the U.S. added just 2,000 net new manufacturing jobs in November. Ohio and Texas experienced the fastest employment growth for the month among manufacturers, with 4,400 and 3,900 net new jobs, respectively. At the other end of the spectrum, California had the largest monthly losses, with 8,000 fewer manufacturing workers in November.

Taking a longer view, Oklahoma has experienced the highest rate of employment growth this year, with 7.5 percent more manufacturing workers in November 2011 than in December 2010. The figure below shows the top ten states for manufacturing job growth expressed as a percentage of total manufacturing employment in the state. Note that in absolute terms, Texas (up 23,300) and Michigan (up 21,600) had the largest manufacturing gains.

Chad Moutray is chief economist, National Association of Manufacturers.

With the grim announcement today of the unemployment rate ticking up to 9.1 percent and only 54,000 jobs created in May, nearly 100,000 short of the estimated number, the issues of creating jobs by putting our domestic energy companies back to work is taking center stage in Congress.

Yesterday, in the House of Representatives, offshore drilling was the hot topic with three committees holding hearings on the issue. Manufacturers know that resuming drilling in the Gulf of Mexico and increasing domestic energy production will help invigorate our embattled economy and add more jobs to the payrolls.

The House Energy and Commerce Committee passed a measure yesterday to streamline permitting for offshore drilling operations and to eliminate the bureaucratic red tape that holds up new exploration and production. According to the Committee, the measure will help create jobs and increase domestic energy supplies.

In the House Oversight and Government Reform Committee, Chairman Issa released a report critical of the BP/Administration Response to the Gulf Oil Spill and also held a hearing assessing the recovery efforts after the spill. Mississippi Governor Haley Barbour and Director Michael Bromwich from the Bureau of Ocean Energy Management, Regulation, and Enforcement at the Department of the Interior, both testified.

And in round three of hearings, the House Natural Resources Committee , Subcommittee on Energy and Mineral Resources held a hearing on Alaskan oil and gas drilling, and the need for faster action in the permitting process. The subcommittee stressed the importance of expediting exploration and production to reduce dependence on foreign oil and create hundreds of thousands of jobs.

As summer goes on and gas prices hover around four dollars a gallon, unemployment continues to tick up, the cost of goods and services rises, domestic energy production will continue to remain in the forefront of congressional debates.

From the Bureau of Labor Statistics, The Employment Situation for March:

Nonfarm payroll employment increased by 216,000 in March, and the unemployment rate was little changed at 8.8 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, health care, leisure and hospitality, and mining. Employment in manufacturing continued to trend up….

Total nonfarm payroll employment increased by 216,000 in March. Job gains occurred in several service-providing industries and in mining, and manufacturing employment continued to trend up. Since a recent low in February 2010, total payroll employment has grown by 1.5 million. (See table B-1.)…

Manufacturing employment continued to trend up in March (+17,000). Job gains were concentrated in two durable goods industries–fabricated metal products (+8,000) and machinery (+5,000). Employment in durable goods manufacturing has risen by 243,000 since its most recent low in December 2009.

According to table B-1, the largest gain in manufacturing sectors came in fabricated metals, up 8,200 jobs and motor vehicle and parts, up 6,100 jobs.

Manufacturing employment in electrical equipment and appliances fell 1,900 jobs.

From the Bureau of Labor Statistics release on the employment situation for February.

Nonfarm payroll employment increased by 192,000 in February, and the unemployment rate was little changed at 8.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in manufacturing, construction, professional and business services, health care, and transportation and warehousing.

Manufacturing employment rose by 33,000 in February. Almost all of the gain occurred in durable goods industries, including machinery (+9,000) and fabricated metal products (+7,000). Manufacturing has added 195,000 jobs since its most recent trough in December 2009; durable goods manufacturing added 233,000 jobs during this period.

For the industry-by-industry breakdown, go here.

While the January employment report shows that manufacturing added just 49,000 jobs last month, we remain concerned with the slow rate of job growth.  Manufacturers were hit very hard by the recession and lost over 2 million jobs over the past few years. In order to create new jobs we need a strong growth agenda from Washington to lower burdens on businesses of all sizing so they can gain confidence in the recovery and begin hiring again. 

The average duration of unemployment is now the longest ever recorded at 36.9 weeks and many unemployed workers have simply stopped looking for new jobs. This is not positive news for manufacturers or the economic recovery.

Many manufacturers are still very concerned about the state of the recovery and the uncertainty caused by harmful regulations and policies coming from Washington. Today’s report demonstrates that manufacturers still have a very long way to go return to the peak pre-recession levels. Manufacturers need certainty and pro-growth policies that will allow them to grow and better compete in the global market and create good high-paying jobs.

Aric Newhouse is the NAM Senior Vice President for Policy and Government Relations.

From this morning’s monthly employment situation from the Bureau of Labor Statistics:

The unemployment rate fell by 0.4 percentage point to 9.0 percent in January, while nonfarm payroll employment changed little (+36,000), the U.S. Bureau of Labor Statistics reported today. Employment rose in manufacturing and in retail trade but was down in construction and in transportation and warehousing. Employment in most other major industries changed little over the month….

Manufacturing added 49,000 jobs in January. Over the month, job gains occurred in durable goods, including motor vehicles and parts (+20,000), fabricated metal products (+13,000), machinery (+10,000), and computer and electronic products (+5,000). Employment in nondurable goods manufacturing declined by 13,000 over the month.

The news stories for today’s release anticipated an increase in the unemployment rate, so at first glance, this is pretty good news.

From “AP survey: Painfully slow economic gains into 2011“:

WASHINGTON (AP) — The job market and the economy will improve only slightly next year, according to an Associated Press survey of leading economists whose outlook for 2011 has dimmed over the past three months.

Dave Huether, chief economist for the National Association of Manufacturers, is one of the AP’s panelists and was interviewed for the AP Online Video Network in this clip. Huether:

Right now I see the economy as decelerating. I think the chances of going to double dip aren’t too high – I’d place it probably under 25 percent.

But the signs are right now that with the bulk of the stimulus in the rear-view mirror, the inventory rebound in the rearview mirror, the economy is set to grow, I think, at about a 2, 2-1/2 percent pace probably in the second half of the year.

The survey predicts unemployment falling just to 9 percent by the end of 2011, and some economists do not think employment will return to its historical norm until 2018.

Truckinfo.com covers a panel of economists attending the American Trucking Associations’ annual management conference in Phoenix. Among the speakers was Dave Huether, the NAM’s chief economist.

From “Economic Experts Look at Economy During ATA Session“:

[High] unemployment is contributing to another anemic number in this recovery, and that’s consumer spending on services. David Huether, chief economist for the National Association of Manufacturers, showed a chart comparing various figures from this recovery with the average of the past 10 recoveries. Consumer purchases of services, which account for 48 percent of the economy, were a fraction of the average.

On the other hand, the chart showed manufacturing is much higher than in past recoveries — in fact it’s growing twice as fast as the rest of the economy. This is largely thanks to exports, another higher-than-average figure in this recovery. U.S. exports have gorwn about 14 percent, about 3.5 times faster than average growth in the first-year recovery. And manufactured goods mean more truckloads, as trucks transport both raw materials and finished products. (continue reading…)

Agustino Fontevecchia of Forbes.com interviews Dave Huether, the National Association of Manufacturers’ chief economist, on the latest unemployment report and the impact of uncertainty on the economy. From “Uncertainty Weighs On Manufacturing Jobs“:

Within the private sector, which added 64,000 jobs as a whole in September, manufacturing recorded the second-largest job decline for September, trailing the construction sector drop of 21,000 jobs. But given the size of the sector, manufacturing’s decline was relatively small. “The sector is made up of 19 or 20 industries, so a decline of 6,000 jobs spread out that much isn’t a big preoccupation,” says Huether. More troubling is that temporary jobs, which usually precede full-time hiring, did not pick up.

For firms in manufacturing, the economic recovery has been sweet and sour. “Manufacturing led the recovery last year, but partially due to temporary factors,” says Huether, who cited tax credits for purchases of homes and efficient appliances, the Cash For Clunkers program, and the stimulus package. With those programs expiring or running their course, the resulting slowdown is unsurprising, according to Huether. “This weakness is a sort of a hangover, a sort of payback.”

Meanwhile, north of the border, The Sun reports, “Jobless rate shows signs of cooling economy“:

Canada’s labour market continued to show signs of stalling in September, with minimal gains reported in key industries and a slight dip in unemployment related to less youth actively looking for work.

The country’s unemployment rate dipped ever so slightly to 8 per in September, down 0.1 per cent, Statistics Canada reported on Friday.

• Los Angeles Times, “Unemployment stays at 9.6% as schools, governments slash jobs
• Reuters, “Unemployment rate unchanged at 9.6 pct“
• PBS NewsHour, September Job Losses Steeper, Worse for Economy Than Expected“