Newsroom: Industry News
The manufacturing sector added 16,000 net new workers in July, extending the gain of 12,000 workers in June and reflecting growth in seven of the past eight months. Over that eight-month span (since November), manufacturers have averaged 12,500 new jobs per month—definite improvement from the loss of 16,000 workers on net in 2016. In July, there were 12,425,000 manufacturing workers. At the same time, average weekly earnings for manufacturing workers have risen 2.8 percent over the past 12 months. At the same time, the U.S. economy increased nonfarm payroll employment by 209,000 in July, exceeding 200,000 for the third time in the past four months. The unemployment rate fell from 4.4 percent in June to 4.3 percent in July, returning to the pace in May, which was a 10-year low. Such strong labor market growth should further cement the Federal Reserve’s normalization plans, including raising short-term rates and reducing the size of its balance sheet, perhaps doing both at its upcoming meeting in September.