The Bureau of Labor Statistics said that manufacturers added 28,000 net new workers in November, extending the revised increase of 20,000 in October. This was a relatively strong number, suggesting that the manufacturing sector has averaged just shy of 15,000 additional employees per month through the first 11 months of 2014. Since the end of 2009, manufacturers have hired an additional 740,000 workers on net.
These data show that the more-robust growth in new orders and output seen in other indicators are beginning to translate into healthier hiring figures. Indeed, manufacturing leaders remain mostly upbeat in their outlook, which should bode well for hiring in the sector as we move into 2015. At the same time, there also continues to be worries about the global economy as well as concern over other headwinds such as rising health care costs and regulatory burdens.
Looking specifically at the November manufacturing employment numbers, durable and nondurable goods firms added 17,000 and 11,000 workers on net, respectively. The largest increases were seen in the following sectors: plastics and rubber products (up 7,100), motor vehicles and parts (up 3,000), fabricated metal products (up 2,200), machinery (up 2,100), printing and related support activities (up 2,000) and furniture and related products (up 1,800). In contrast, chemicals (down 1,800), apparel (down 700), textile product mills (down 500), petroleum and coal products (down 300) and paper and paper products (down 200) had lower employment in November.
Earnings and the average number of hours worked were also higher. Average weekly earnings for manufacturing employees rose from $1,020.05 in October to $1,025.86 in November, suggesting a 1.8 percent increase year-over-year. The average worker earned $24.96 per hour in November. In addition, the average number of hours worked in the sector increased from 40.9 to 41.1, with the average overtime hours edging up from 3.4 hours to 3.5 hours.
Meanwhile, nonfarm payroll employment jumped 321,000 in November. This was well above the consensus expectation of around 230,000, and it was the fastest monthly pace since April 2011. Nonfarm payrolls also exceeded 140 million for the first time ever. It was the tenth straight month with nonfarm payrolls increasing by at least 200,000 or greater, with a year-to-date monthly average of 240,909 (or 250,600 if you exclude January).
The unemployment rate was unchanged at 5.8 percent. At the same time, the participation rate remained at 62.8 percent, staying near 30-year lows. The so-called “real” unemployment rate (also known as U-6 in the report) fell to 11.4 percent, the lowest level since September 2008.
As Washington prepares for the 114th Congress, manufacturers are counting on policymakers to focus on pro-growth measures that will keep the momentum going and foster continued economic growth by expanding opportunities to reach new customers abroad. Comprehensive Tax Reform, Passage of Trade Promotion Authority, a long-term re-authorization of the Export-Import Bank, and strong a legislative check on the onslaught of harmful regulations are a good place to start.
Chad Moutray is the Chief Economist for the National Association of Manufacturers.