unemployment-rate-hits-historic-low,-but-manufacturing-has-sluggish-year

The latest reports on the economy show mixed results. The Bureau of Labor Statistics (BLS) reported that 266,000 non-farm payrolls were created in November, pushing the unemployment rate to a historically low 3.5%. Government data released today showed the United States added far more jobs than expected in November, “relieving concerns that one of the brightest spots in the economy may have started to run out of steam,” said Business Insider in its Markets report.

Profit and loss graphic

Manufacturing employment also increased in November, noted the Alliance for American Manufacturing (AAM). The sector gained 54,000 jobs, according to the BLS, with the bulk of growth coming from automotive jobs. AAM’s President Scott Paul commented: “With only one month left in 2019, Trump’s promise that manufacturing jobs will boom has sputtered. November’s jobs number was aided by UAW workers securing a new contract and returning to the factory floor.

“Overall, 2019 factory job growth has been incredibly weak, lagging well behind 2018 and underperforming [compared with] the rest of the economy. While there has been periodic bluster about policies to boost infrastructure and stop China’s cheating, no real progress has been made to date. American workers deserve better from the administration and Congress,” said Paul.

Nick Bunker, Research Director at Indeed Hiring Lab, commented to Business Insider, that the high number of jobs added in November doesn’t tell the whole story. “You might forget that the story for most of this year was that the economy was slowing down,” he said. “The slowdown did happen, but we can move into 2020 with a bit more optimism.”

Business Insider reported that while wage growth continued to outpace inflation last month, it “remained stubbornly below what would be expected with an unemployment rate at its lowest level in half a century. Average hourly earnings rose 3.1% year-over-year in November, a slight uptick from a month earlier but short of the peak growth levels seen in early 2019.”

November’s Purchasing Managers Index from the Institute for Supply Management (ISM), released on Dec. 2, showed yet another contraction to 48.1 from October’s 48.3. In fact, most of the index measurements were in the “contracting” mode even though the index showed the overall economy “growing.”

New orders for November fell to 47.2 from October’s 49.1. New export orders also fell from 50.4 (growing) in October to 47.9 (contraction) in November. Production’s contraction slowed from October’s 46.2 to 49.1 in November. Inventories contracted faster, from 48.9 in October to 45.5 in November, and customer inventories fell to levels considered “too low,” from 47.8 in October to 45.0 in November. Order backlogs also dropped 1.1% in November to 43.0.

Comments from respondents to ISM’s November survey included this one from a machinery supplier: “Demand has stabilized for the last half of [the fourth quarter], and production will be stable for the rest of this year.”

A respondent from the plastics and rubber products sector commented, “Heading into the holiday season, we are seeing the backlog decrease, as new orders for 2020 seem lighter than in past years.”

A new report from ResearchAndMarkets (Global Plastic Processing Machinery Markets Report 2019: 2017-2018 Data & CAGR Projections 2019-2023), noted that “increasing demand for processed food and beverages, followed by increasing requirements for packaging, is fueling the overall growth in the plastics processing machinery market. The increasing demand for plastics in a variety of applications is expected to fuel growth of the plastics processing machinery global market. Accuracy, reliability, and energy efficiency play an important role in the growth of plastic processing machinery global market.”

Image: Hywards/Adobe Stock

35 comments

  1. If you want to take a good deal from this paragraph then you have to apply these
    techniques to your won web site.

  2. Today, while I was at work, my sister stole my iphone and tested to see if it can survive a 25 foot drop,
    just so she can be a youtube sensation. My iPad is now
    broken and she has 83 views. I know this is completely off
    topic but I had to share it with someone!

  3. We absolutely love your blog and find almost all of your post’s to be
    precisely what I’m looking for. Do you offer guest writers to write content in your case?
    I wouldn’t mind publishing a post or elaborating on most of the subjects you write related to here.
    Again, awesome blog!

  4. You are so cool! I do not think I’ve read anything
    like this before. So wonderful to discover someone with some unique thoughts
    on this issue. Really.. thank you for starting this up.

    This website is one thing that is required on the internet,
    someone with some originality!

  5. Definitely imagine that which you stated. Your
    favorite reason appeared to be on the web the simplest thing to
    keep in mind of. I say to you, I definitely get irked whilst people
    think about issues that they plainly do not understand about.
    You controlled to hit the nail upon the highest and also defined out the entire thing with no need side effect , other
    people can take a signal. Will probably be again to get more.
    Thanks

  6. Please let me know if you’re looking for a article writer for your blog.
    You have some really great articles and I think I
    would be a good asset. If you ever want to take some of the load off,
    I’d absolutely love to write some material for your blog in exchange for
    a link back to mine. Please shoot me an e-mail if interested.
    Many thanks!

  7. I think this is among the most significant information for me.

    And i’m glad reading your article. But want to remark on few general things, The web
    site style is wonderful, the articles is really nice :
    D. Good job, cheers

  8. Simply want to say your article is as astounding. The clarity in your publish is just nice and that i could think you are a professional on this subject. Well together with your permission let me to clutch your feed to stay updated with coming near near post. Thank you a million and please carry on the rewarding work.|

  9. I don’t even understand how I ended up here, but I thought this publish was good.
    I do not know who you’re but definitely you are going to a well-known blogger should you aren’t already.

    Cheers!

  10. Amazing blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple adjustements would really make my blog stand out. Please let me know where you got your design. Many thanks|

  11. I’m truly enjoying the design and layout of your website. It’s a very easy on the eyes which makes it much more enjoyable for me to come here and visit more often. Did you hire out a developer to create your theme? Exceptional work!|

  12. It’s perfect time to make some plans for the future and it is time to be happy. I have learn this submit and if I may just I want to suggest you few fascinating things or suggestions. Maybe you could write next articles referring to this article. I desire to learn more things about it!|

  13. Wow, fantastic blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your web site is excellent, let alone the content!|

  14. I really like your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz respond as I’m looking to create my own blog and would like to find out where u got this from. many thanks|

  15. Simply want to say your article is as astonishing. The clarity in your post is just cool and i could assume you’re an expert on this subject. Fine with your permission allow me to grab your feed to keep up to date with forthcoming post. Thanks a million and please carry on the rewarding work.|

Leave a Reply

Your email address will not be published.