Are Manufacturing Jobs the Key to Avoiding a Recession?

On Monday, Data revealed that manufacturing jobs grew in the month of September. This happened in the midst of a terrible economic climate. This suggests that the United States still has a chance to avoid another recession; and its saving grace may be more people working in manufacturing jobs.

Additionally, data revealed that sales stayed strong throughout the month, and vehicle sales were shown to be moving forward after rebounding in August. Though everything seems to move slowly, progress is occurring in the US economy.

Currently, manufacturing accounts for approximately 12% of the United State’s GDP, and about 11% of non-farm jobs. These high percentages coupled with the rise in job availability during the month of September is a good sign for the United States. Still recovering from the rough report of the economy failing to add any jobs during the month of August, economist see this pick-up in the availability of factory jobs as a sign of good things to come.

Unfortunately, there are two sides to every coin. While jobs may have increased, the number of orders continued on their path of steady decline for the third straight month. If orders continue to decline, it is only a matter of time before factories have to start downsizing due to lack of funding.

The factories cannot move forward until new orders begin coming in again. Experts believe that customer’s supplies are at an inoperable low, meaning orders must pick up soon. Presently, factories are banking on this fact, hoping that things pick up soon. With customer’s supplies low, orders for exports rising, and the delay in suppliers delivering to manufacturers, there is a glimpse of hope that things turn out well for factory job opportunities.

Although the United States currently has an unemployment rate of 9.1%, the factory industry has marked the 26th sequential month of expansion. During September, the nationwide factory activity rested at 51.6, a 1.0 rise from August. However, if orders continue to fall, the factory activity index is projected to only read 50.5 in the month of October. This still shows a good thing going on in the factory industry, because a reading higher than 50 shows manufacturing expansion.

The growth in jobs in United States manufacturing has challenged the worldwide status quo. Both Asia and Europe faced difficult times during September, and saw factory activity levels at the lowest point they have been in approximately two years. The United States sees this as a concern, worried that any shock to the system in Europe will send the USA into a spiralling recession. Despite the good things, the Federal Reserve still warned of great risks within the worldwide economy. However, the United States can take solace in the growth and progress she sees. As the saying goes, slow and steady wins the race.