January Jobs Report and the Manufacturing Recovery
Posted February 7, 2014 & filed under Hiring Resources
The Bureau of Labor Statistics released a January jobs report that looked better than December’s stats. 113,000 new jobs were added to the workforce which is a step up from 74,000 the month before. Unemployment fell and labor force participation went up on the whole but how did manufacturing fare? Reasonably well compared to other industries.
Hidden Truth in the Overall Numbers:
113,000 new jobs added to the month of January jobs report may not sound stellar but let’s look at all the facts. For one thing, the total number of private sector jobs added reached 142,000, which only falls slightly shy of the 148,000 jobs added in January 2013. Where did we lose 29,000? Look to the public sector. Due to restructuring, budget cuts, and department changes (especially the U.S. Postal Service), there was a net loss for public sector employees.
Additionally, there is a consensus that the cold snap that’s plagued much of the contiguous U.S. has the potential to cost the U.S. economy roughly $5 billion. That means less spending on hiring as work orders decrease and companies weather out the polar vortex. As the inclement weather clears up, expect to see more invigorated hiring numbers.
Unemployment & Participation Improves
Better still, there was a steady decline in the unemployment numbers. In the January jobs report 2014, the national unemployment average fell to 6.6 percent from 6.7 percent in January of 2013.
Additionally, the labor participation rate showed good signs for the overall job market as it rose to 63.0 percent from 62.8 percent the month before. Though the increase is small, fewer people are opting out of the workforce due to frustration and that shows positive growth.
Manufacturing: A Sign of Solid Growth
In spite of possibility for production stalls due to the inclement weather, manufacturing numbers were positive. The Bureau of Labor Statistics reports 21,000 jobs were added to the market. That’s an increase from the 2013 January jobs report (which saw 17,000 manufacturing jobs added) and December 2013 (which only saw 8,000 manufacturing jobs added). New manufacturing positions are being created as high-tech manufacturing techniques become more prevalent and more positions are reshored from abroad.
by James Walsh
