#643 – June Jobs Report

June Jobs Report

Durable goods (automobiles, appliances, electronics, furniture, tools, etc.) manufacturing showed positive gains for June, while non-durables (goods which are immediately used by a consumer or which has an expected lifespan of three years or less, such as food and clothing) slipped considerably. Following is a report (http://advancedmanufacturing.org/us-manufacturing-adds-1000-jobs-durable-goods/)  from advancedmanufacturing.org that breaks down the numbers…

US Manufacturing Adds 1,000 Jobs on Durable Goods

US manufacturers added only 1,000 jobs overall in June with all of the strength occurring in durable goods.

Makers of durable goods added 9,000 jobs while manufacturing in non-durable goods lost 8,000, according to a breakdown by industry issued today by the US Bureau of Labor Statistics.

Within durable goods, job gainers included machinery (up 3,500 jobs), fabricated metal products (3,000) and primary metals (2,300).

However, some major categories posted job losses. Transportation equipment lost 2,700 jobs, including 1,300 jobs in the motorized vehicle and parts category.

Over the past two years, the auto industry was a strong jobs performer amid record US deliveries of light vehicles in 2015 and 2016.

In the first half of 2017, light-vehicle sales fell 2.1% to 8.45 million, according to Autodata Corp. (Mahwah, NJ). Car sales plunged 11% during that period while light truck sales rose 4.6%. Trucks and sports-utility vehicle sales have benefited from low fuel prices.

Manufacturing jobs totaled 12.396 million on a seasonally adjusted basis last month. That’s up from an adjusted 12.395 million in May. The June figure also was an improvement from 12.347 million manufacturing jobs in June 2016.

Total non-farm employment surged by 222,000 jobs in June, the bureau said in a statement. That was better than forecasts of economists, which called for a 179,000 gain, according to Reuters.

The US unemployment rate edged up to 4.4% from the 16-year-low of 4.3% in May. The rise was due to more people looking for work.

Manufacturing jobs peaked in June 1979 (19.6 million on a seasonally adjusted basis, 19.7 million unadjusted). That sank to a low of 11.45 million adjusted and 11.34 million unadjusted in February 2010 following a severe recession caused by the 2008 financial crisis.

Since that low, new manufacturing jobs have been created requiring increased skills because of more automation and technology in factories.

Here at Agracel, where the majority of our leases are with manufacturers, we are keen to remain aware of strengthening and weakening industry sectors. With 30+ years in business, we have learned that peaks and valleys are a part of our economy and we do our best to diversify our portfolio’s industry concentration. Stay tuned…