What will strong job growth signal for the manufacturing industry? With the recent release of the "ADP National Employment Report" for August, manufacturers in the U.S. have reason to be optimistic about the future of the industry. According to the report, roughly 204,000 jobs were added in non-agricultural sectors. Manufacturers increased their workforce by 23,000 workers last month, while companies with payrolls including 50 to 499 employees saw the greatest jump in figures. While total employment numbers for August were lower than those for July, Mark Zandi, chief economist of Moody's Analytics, explained hiring has reached a fairly consistent pace.
US factories demonstrate growth
Meanwhile, the forecast for U.S. factories output is sending similarly positive signals. According to a recent MarketWatch survey, reports detailing factory orders for July are expected to show an 11 percent spike in activity. Economists anticipate growth because of June's strong showing. During that month, manufacturing orders reached a high-water mark, with all industries aside from textiles experiencing a rise in activity.
Automakers play a pivotal role
A major contributor to the rise in manufacturing output has been renewed interest in purchasing new vehicles among consumers. According to Reuters, August numbers for U.S. auto sales achieved the highest level since the same time in 2003 when the industry unloaded roughly 1.63 million new vehicles on consumers. Last month, automakers sold more than 1.58 million cars and trucks, reflecting a 5.4 percent spike compared to the year before.
The top automobile manufacturers for the month were General Motors, Toyota and Ford, all of which have been leading the resurgence for the better part of the summer. This financial news is important for the economy because automotive sales compose one-fifth of retail spending in the U.S., Reuters wrote. Consumers were likely drawn to dealerships as a result of robust discounts and incentives, especially during the Labor Day holiday weekend.
What does it mean for the labor market?
With amplified factory output and demand for goods on the rise, manufacturers will likely need to continue strong hiring practices. However, finding highly-skilled employees to assume positions in U.S. factories equipped with advanced technology requires significant time and effort. Manufacturing recruiters can assist company owners in finding the right fit for their needs, whether they seek individuals with knowledge of electronic car components or engineering skills.