New data released by the Bureau of Labor Statistics shows the U.S. added 196,000 jobs in March and the unemployment rate remained unchanged at 3.8%. However, employment in the manufacturing sector fell for the first time in more than a year, dropping by 6,000 jobs.
Overall, the nation’s manufacturing sector has been growing at a steady pace over the past few years.
2018 was the best year for manufacturing employment gains in the post-recession era, adding a record 284,000 jobs, while 2017 was also a notable year, with jobs climbing by 207,000.
Read More: U.S. adds record number of manufacturing jobs in 2018
Manufacturing currently accounts for 12,821,000 jobs, or 9% of total U.S. non-farm employment. This stands at roughly the same level as in December 2008 (12,850,000).
Employment gains, however, seem to be leveling off in 2019, with the sector posting a net loss of 5,000 jobs since the start of the year. Manufacturing added 17,000 jobs in January, but gains slowed to 1,000 jobs in February, and the sector lost 6,000 in March.
Where the jobs were lost
Breaking down the numbers provided by the Bureau of Labor Statistics reveals some interesting trends.
Although manufacturing as a whole shed jobs, the non-durable goods category added workers, while employment in durable goods declined.
Within the durable goods category, motor vehicles and parts production shed the most jobs (-6.3%) and transportation equipment overall was not far behind (-4.5%). Significant also was a drop in wood products employment (-3%) and also nonmetallic mineral products (-2.4%). Furniture also saw a slight loss (-1%).
All other sectors either added jobs or remained virtually unchanged, including computer and electronic products (+2.1%); electronic instruments (+1.5%) and semiconductors and electronic components (+0.8%).
The non-durable goods category fared better, helped by a 2.6% gain in food manufacturing. Miscellaneous non-durable goods manufacturing employment rose 2.2%, while textiles edged up 0.8%.
Printing and related support activities as well as plastics and rubber products led losses, both down 1.9%. The chemicals sector also shed jobs, down 1.6%, as did petroleum and coal products, down 0.7%.
Looking at the industrial sector as a whole, the U.S. goods-producing sector added 12,000 jobs, with mining climbing by 1.1% and oil/gas extraction rising 0.7%.
Construction added 16,000 jobs, helped by a 13% surge in specialty trade contractors. Residential building construction rose 4.7%, while non-residential building construction declined 2.9%.
Manufacturing slowdown concerns
Today’s job report coincides with a recent report from the Institute for Supply Management, which found that U.S. manufacturing activity is still in expansion mode, with new orders, production and employment generally on a path of acceleration.
Growth, however has been more muted in 2019.
U.S. manufacturing activity now stands at 55.3%, up 1.1% from February’s reading of 54.2%, but still well below August’s fourteen-year high reading of 61.3%.
December’s index sank at a rate not seen since 2008 – echoing the dark days of the recession, and a number of economists have predicted a deceleration in economic growth in 2019.
Also troubling was a decline in manufacturing output as well as a jump in the trade deficit.
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