Manufacturing Jobs and Employment Increase

The economy in the United States has obviously received plenty of good news in the month of December but besides the fact the economy is doing better, manufacturing sectors are also doing much better and therefore received good news in December as well. The nonfarm payrolls has increased by 200,000 and helped to lower the unemployment rate to a lower 8.7 percent. Employment for the manufacturing sector grew by 23,000.

When taking a look at the different sectors, some of the strongest sectors (when it comes to monthly gains) were transportation equipment, metal products, and machinery. There were a few declines within the petroleum and coal products along with furniture products. However, even with a few declines, the manufacturing company still seems to be making progress. In 2010, 109,000 manufacturing jobs were created. By 2011, 225,000 jobs were created for the manufacturing sector. This shows how much progress has been made within just the span of a year. Since 2008, more than 330,000 jobs have been acted to this sector.

Chad Moutray, a chief economist, has said, “The domestic economy — particularly among manufacturers — is starting to rebound after several weak months in mid-2011.” He also says, “More importantly, recent data suggest that manufacturers are upbeat about production and employment moving forward — a positive sign for the coming months. Yet, we should also appreciate that significant weaknesses persist in the marketplace. The unemployment rate is still stubbornly high, the housing market is improving but still depressed, economic anxieties about Europe still resonate as well as the uncertainty being created in Washington. These concerns suggest that businesses remain cautiously optimistic about 2012, mindful of the headwinds that still persist around them.”

The executive director of the Alliance for American Manufacturing, commonly referred to as the AAM, Scott Paul, has pointed out that although the numbers for manufacturing jobs in the month of December were good, the sector has, unfortunately, shed at least one-third of its employment rate within the past ten years. While this is unfortunate, there are some who are hopeful that with the progress being made, the manufacturing sector will be able to create more employment for people who work in this particular sector.

Scott Paul says that there are quite a few challenges that will come across in the future for the manufacturing sector. Paul says, “Dampened growth in China and Europe may impact the fortunes of American exporters. Currency manipulation in China and Japan may continue to hamper manufacturing growth in the United States. Congress may impose self-inflicted wounds to our economy by refusing to expand tax breaks for plant and equipment purchases as well as clean energy manufacturing. So, there are no guarantees that manufacturing employment will continue to thrive unless Congress and the President understand exactly what is at stake.”