Report: U.S. manufacturing sector slashed 26,000 jobs in November as industry woes persist

• The U.S. manufacturing industry shed 26,000 jobs in November, following a loss of 19,000 jobs in October
• Private employers added 146,000 jobs in November, falling short of analysts’ expectations of 150,000, with goods-producing industries showing only a 6,000-job gain.
• Manufacturing was the weakest sector, and another report highlighted that the industry has been contracting for eight consecutive months.
• The manufacturing sector faces ongoing challenges, including sluggish global growth, high financing costs, and uncertain U.S. policy, which may persist into 2025.
• Despite manufacturing struggles, the U.S. economy is projected to grow at a 3.2 percent annual rate in the fourth quarter, with annual pay growth increasing by 4.8 percent.

The manufacturing industry of the United States experienced a significant decline in employment in November, shedding 26,000 jobs.

This is according to the latest National Endowment Report from human resources management firm Automatic Data Processing (ADP), noting that the manufacturing industry continues to struggle under the administration of outgoing President Joe Biden, following a loss of 19,000 jobs in October.

The report, released on Dec. 4, revealed that private employers across the country added a total of 146,000 jobs in November, falling short of analysts’ expectations of 150,000 new positions. The weakness in goods-producing industries was evident, with a net gain of only 6,000 jobs in this category.

Nela Richardson, ADP chief economist, noted that while overall growth for the month was “healthy,” industry performance was mixed. “Manufacturing was the weakest we’ve seen since spring. Financial services and leisure and hospitality were also soft,” she stated.

The construction sector added 30,000 jobs in November, while the mining and natural resources industry saw a modest increase of 2,000 jobs. However, the manufacturing sector’s job losses extended the contraction that has been ongoing for months.

The Institute for Supply Management’s (ISM) latest manufacturing activity report further underscored the sector’s challenges. In November, the manufacturing sector contracted for the eighth consecutive month and the twenty-fourth time in the last 25 months.

Timothy Fiore, chair of the ISM’s manufacturing business committee, reported that 66 percent of manufacturing GDP contracted in November, up from 63 percent in October.

While there were some positive indicators, such as new orders expanding for the first time in eight months and input costs rising at a slower pace, the overall picture remained one of continued weakness, including a reduction in factory employment.

Job openings, new hires in manufacturing dropping since October

The ADP report aligns with data from the Bureau of Labor Statistics (BLS), which showed a decline in both job openings and hires in the manufacturing sector in October. The most recent nonfarm payrolls report from BLS also indicated that manufacturing lost 6,000 jobs in September, with job losses increasing to 46,000 in October.

Economists polled by Reuters predict that the U.S. economy added 200,000 positions last month, following a weak gain of 12,000 jobs in October, the lowest figure since December 2020.

Richard Moody, chief economist at Regions Financial Corporation, highlighted the ongoing challenges facing the manufacturing sector.

“Over the past several months, we’ve noted that the manufacturing sector seemed more or less stuck in a holding pattern, with sluggish global economic growth, still-high financing costs, and an uncertain outlook for U.S. tax, regulatory, and trade policy acting as stiff headwinds,” he wrote in a recent note.

Moody added that despite the election being over, the policy outlook remains uncertain, which will likely keep the manufacturing sector on “very tentative footing into 2025.”

The ongoing slump in manufacturing is a key issue facing the incoming administration of President-elect Donald Trump, who has proposed plans to revive the sector, including cutting regulations and lowering energy costs for consumers and businesses. (Related: Trump vows to implement new tax incentives that would boost U.S. auto manufacturing industry.)

Despite the challenges in manufacturing, the U.S. economy appears to have retained its momentum from the third quarter. The latest GDP estimate for the fourth quarter projects the economy growing at 3.2 percent in annual terms, up from the 2.8 percent pace of growth in the July–September period, according to the Federal Reserve Bank of Atlanta.

The November ADP National Employment Report also provided insights into annual pay growth, which increased by 4.8 percent year-over-year. The report, produced by ADP Research in collaboration with the Stanford Digital Economy Lab, uses anonymized payroll data from more than 25 million U.S. employees to offer a detailed and high-frequency view of the private-sector labor market. The report’s pay measure uniquely captures the earnings of a cohort of almost 10 million employees over a 12-month period.

In summary, the U.S. labor market showed mixed performance in November, with the manufacturing sector continuing to struggle while the services sector demonstrated resilience. The data highlights the ongoing challenges facing the manufacturing industry, which remains under pressure from global economic uncertainty and policy headwinds.

Watch this clip featuring Sen. Mike Crapo (R-ID) discussing how the Republicans can help strengthen the economy and grow jobs.

This video is from the NewsClips channel on Brighteon.com.

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Sources include:

TheEpochTimes.com

PRNewswire.com

Brighteon.com