Washington,
D.C. – A new report
released today by the U.S. Congress Joint Economic Commitee (JEC), titled “Understanding the
Economy: Promising Signs of Recovery in Manufacturing,” provides an in-depth
look at the manufacturing sector, examining manufacturing employment losses
during the Great Recession and detailing the rebound in manufacturing during
the first half of 2010.
“This report
shows that the manufacturing sector is a bright spot in the recovery with six
consecutive months of employment growth. However, these job gains are not consistent
across the U.S. or even within the states with the largest manufacturing
bases,” said Congresswoman Carolyn
Maloney, Chair of the JEC. “There
are a lot of unemployed manufacturing workers suffering – during the Bush
years, we lost 27% of our country’s manufacturing jobs – so this recent
manufacturing rebound is especially good news.
We need to ensure continued growth in this sector – by boosting demand
and ensuring that there is a level playing field for products made in America.”
The report
finds that after peaking in 1979, manufacturing employment has gradually
declined during the past thirty years, with that decline accelerating during
the Bush administration and even further during the Great Recession. The manufacturing sector began to rebound in
2010, adding jobs for six consecutive months and a total of 136,000
manufacturing jobs in the first half of 2010.
Nearly all (96 percent) of the manufacturing employment gains during the
first half of 2010 have been in durable goods.
“This new report gives us hope that the American manufacturing rebound will continue to add good, sustainable jobs to our economy. We need to do everything we can to build on the momentum in the manufacturing sector to bring our nation back on the road to prosperity. There is no bigger step we can take to promote U.S. job creation, particularly in the manufacturing sector, than to end unfair trade practices and confront China’s currency manipulation,” said Senator Charles E. Schumer, Vice-Chairman of the JEC.
Other JEC report findings include:
Manufacturing Job Loss Leading up to and During the Great Recession
- 4.7 million manufacturing jobs – more than 27 percent of employment within the sector – were lost from February 2001 to February 2009.
- About three-fourths of the almost 2.7 million manufacturing jobs lost between June 2006 and December 2009 were within durable goods.
- In June 2006, manufacturing made up more than 10 percent of employment in 26 states; by December 2009, only 17 states had manufacturing sectors that made up more than 10 percent of employment.
Manufacturing Recovery in 2010
- The six consecutive months of manufacturing employment gains from January-June 2010 is the longest stretch of manufacturing growth since 1997.
- States with the largest manufacturing employee bases have experienced manufacturing employment growth in 2010. In the first six months of 2010, manufacturing employment has increased by 4 percent in Indiana, 3 percent in Ohio, Wisconsin, Michigan and Texas, and 1 percent in California, Illinois and Pennsylvania.
Manufacturing Recovery Fragile
- Employers added only 9,000 manufacturing jobs in June 2010, the smallest monthly gain during the first six months of 2010.
The JEC report is part of a series that analyzes data from the Bureau of Labor Statistics during the latest recession to understand its impact on various states, communities and sectors of the economy. The report was prepared by the Majority Staff of the Joint Economic Committee.
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The Joint
Economic Committee, established under the Employment Act of 1946, was created
by Congress to review economic conditions and to analyze the effectiveness of
economic policy.
