Manufacturing Loses 4,000 Jobs in February

by Bill Koenig Senior Editor, SME Media

Manufacturing lost 4,000 jobs last month, the Bureau of Labor Statistics said today.

Durable goods employment was little changed while non-durable goods absorbed the bulk of the job loss, according to a breakdown by sector issued by the bureau.

Job gainers included transportation equipment, up 1,300 jobs. That included a gain of 200 jobs in motor vehicles and parts. Non-metallic mineral products added 1,500 jobs and computer and electronic products added 2,800.

Industries posting job losses included furniture, down 2,800 jobs, and wood products, down 1,000.

Manufacturing employment took a hit in early 2020 with the COVID-19 pandemic. Jobs in the sector began to recover later that year and rose in 2021 and 2022. Manufacturing eventually recovered all the lost jobs.

However, the manufacturing economy began slowing down in late 2022.

The Institute for Supply Management’s manufacturing index indicates the sector has been in economic contraction the past four months.

That index, known as the PMI, is considered a leading economic indicator and a barometer of where manufacturing is heading. The PMI is based on a survey of executives in 18 industries. The institute has said it expects sluggish results in this year’s first half, with a recovery in the second half.

The Federal Reserve Board has been raising interest rates to cool the economy and reduce inflation.

Manufacturing totaled 12.983 million jobs on a seasonally adjusted basis in February, according to the bureau. That was down from an adjusted 12.987 million in January but better than the 12.654 million in February 2022.

Total non-farm employment increased by 311,000 jobs in February, the bureau said in a statement. That was better than the 205,000 estimate by economists surveyed by Reuters. The U.S. unemployment rate rose to 3.6 percent from 3.4 percent in January. n

INSTITUTE FOR SUPPLY MANAGEMENT®

Economic activity in the manufacturing sector contracted in February for the fourth consecutive month following a 28-month period of growth, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®

The February Manufacturing PMI® registered 47.7 percent. In the last two months, the Manufacturing PMI® has been at its lowest levels since May 2020, when it registered 43.5 percent. The New Orders Index remained in contraction territory at 47 percent, 4.5 percentage points higher than the figure of 42.5 percent recorded in January. The Production Index reading of 47.3 percent is a 0.7-percentage point decrease compared to January’s figure of 48 percent. The Prices Index registered 51.3 percent, up 6.8 percentage points compared to the January figure of 44.5 percent. The Backlog of Orders Index registered 45.1 percent, 1.7 percentage points higher than the January reading of 43.4 percent. The Employment Index dropped into contraction territory, registering 49.1 percent, down 1.5 percentage points from January’s 50.6 percent. Of the six biggest manufacturing industries, two (Transportation Equipment; and Petroleum & Coal Products) registered growth in February. A reading above 50 percent indicates that the manufacturing sector is generally expanding; below 50 percent indicates that it is generally contracting.

The four manufacturing industries that reported growth in February are: Apparel, Leather & Allied Products; Transportation Equipment; Petroleum & Coal Products; and Electrical Equipment, Appliances & Components. ISM

Analysis by Timothy R. Fiore, CPSM, C.P.M. Chair of the Institute for Supply Management® Manufacturing Business Survey Committee