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Manufacturers’ Analysis of This Morning’s Manufacturing Jobs Figures
Manufacturing employment continued a modest warm streak in January, creating 21,000 net new jobs in a month when overall U.S. hiring disappointed severely once again.
U.S. Business and Industry Council Research Fellow Alan Tonelson released the following analysis of the latest monthly (January) figures contained in this morning’s employment report from the Bureau of Labor Statistics:
>Manufacturing gained 21,000 jobs in January, registering its third 10,000-plus employment improvement in the last four months and contrasting notably with a second straight disappointing hiring performance for the overall nonfarm economy. (All figures presented on a seasonally adjusted basis.)
>December's manufacturing jobs gain was revised downward from 9,000 to 8,000, but November’s figure was revised upward from 31,000 to 35,000.
>Manufacturing, however, remains a major jobs laggard during the present recovery. The sector has regained only 27.12 percent (622,000) of the 2.293 million jobs it lost from the onset of the recession in December, 2007 through its jobs nadir of February, 2010. By contrast, 90.21 percent of the 8.695 million nonfarm jobs lost during that period have been regained – a performance more than 3.3 times better than manufacturing’
> Because of this relatively slow growth, manufacturing’
>The nondurable goods sector, which represents nearly half of all U.S. manufacturing, ended its jobs recession in January, but still has not created a single net new job since last February. An economic recession is defined as two straight quarters of GDP contraction. USBIC defines a job recession as two or more consecutive quarters of cumulative decline.
>Manufacturing's lagging hiring gains lately show that industry’s jobs rebound earlier during the economic recovery was purely cyclical, not structural, and that contrary to President Obama and others, no structural domestic manufacturing renaissance is in sight.
Alan is available for interviews at 202-266-3985 (tel:202-266-
Page Updated Last on: Feb 07, 2014