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Bloomberg
President Donald Trump lauded a tight labour market as the unemployment rate hit a 50-year low. He didn’t mention job losses appearing in manufacturing, a key industry for his base of
supporters.
Total payrolls at factories contracted by about 2,000 in September, when economists had expected a 3,000 gain. The data was released as part of the monthly jobs report, which this time happened to fall on Manufacturing Day, the industry’s unofficial holiday.
The figures are the latest indication of the hit factories are taking amid slowing growth globally and the ongoing trade war with China, which not only increases prices for companies but also causes investment uncertainty.
The monthly decline in factory jobs was the second this year, and comes after gains throughout the tail-end of 2017 and all of last year. Companies added about half a million manufacturing jobs since Trump took office in January 2017, continuing a trend of sector growth since the 2008-2009 financial crisis.
While the number of losses is still far off from the cuts workers faced during that downturn, it doesn’t bode well for an industry the president promised to revive.
It’s just the latest crack in the industry, which slipped into a recession this year. One major gauge showed manufacturing contracted for the second straight month to the lowest level since 2016, with employment being one of the laggards.
Capital equipment orders — a proxy for investment — rose at the weakest pace in four months in August, the most recent data show, indicating goods-producers taking a step back.
Boston Federal Reserve President Eric Rosengren said expectations for weaker exports and manufacturing are being realised.
Trump campaigned in 2016 on a message to strengthen US factories and the average worker.