The Bureau of Labor Statistics said that manufacturers added 28,000 workers on net in July, its fastest pace in eight months. There were also revisions to May and June data, adding another 11,000 to the bottom line. Overall, these data confirm two things that we have noticed in prior reports. First, hiring and manufacturing activity have largely rebounded from weaknesses earlier in the year. Indeed, average employment growth was 9,600 from December to April, but that was edged up to 22,000 over the past three months (May to July).
Second, total hiring has fared pretty well since the third quarter of last year – despite the winter disruptions – with the sector averaging almost 15,000 per month since August. This suggests that the pickup in demand and output seen in other indicators has led to increased hiring. Since the end of the 2009, manufacturers have created 683,000 new workers on net, or 7.3 percent of all nonfarm payrolls added over that time frame.
The July manufacturing job gains mostly resided in the durable goods sectors, which added 30,000 employees for the month. In contrast, nondurable goods firms shed 2,000 workers. The largest employment gains were in transportation equipment (up 19,200, with 14,600 coming from motor vehicles and parts), furniture and related products (up 3,200), fabricated metal products (up 2,600), primary metals (up 1,700) and computer and electronic products (up 1,600).