the decline of manufacturing jobs

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  • 7/30/2019 The decline of manufacturing jobs

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    Texas manufacturing employment

    (Numbers are in thousands; not seasonally adjusted)

    (Numbers are in thousands; seasonally adjusted)

    Texas manufacturing jobs peaked in 1981, with more than 1.1

    million. Since then, the state has lost one-quarter of its

    manufacturing workforce. Just in the latest recession, Texas

    lost 102,000 jobs (10.9 percent) and continued to lose

    28,800 more through April 2010. In the last two years, Texashas regained 45,000 manufacturing jobs.

    Dallas-Fort Worth manufacturing jobs

    (Numbers are in thousands; not seasonally adjusted)

    Manufacturing jobs in the area are at a 1976 level. Today,

    such jobs make up less than 9 percent of all jobs in the

    region. Since manufacturing employment peaked at 366,900

    in fall 1998, the area has lost 111,300 jobs, or 30 percent. Jobs

    in Dallas-Fort Worth have been slower to bounce back fromthe recession than those elsewhere.

    The nations post-World War II slideManufacturing jobs saw their greatest boom during World War II, according to records kept since 1939. Jobs peaked in June

    1979 at more than 19.5 million. Since then, the nation has lost 39 percent of its manufacturing workforce, or nearly 7.6 million

    jobs. More than 2 million manufacturing jobs were lost during the latest recession, hitting a low point in January 2010. In

    December, U.S. manufacturing jobs hit their highest level (11.99 million people) in 3.5 years.

    10,000

    11,000

    12,000

    13,000

    14,000

    15,000

    16,000

    17,000

    18,000

    19,000

    20,000

    1211100908070605040302010099989796959493929190898887868584838281807978777675

    *Figures for November and December of 2012 are preliminary

    90858075 1210050095 90858075 1210050095

    Note: The government replaced its outdated industry classificationsystem effective as of 2002 for local data.

    Note: The government replaced its outdated industry classificationsystem effective as of 1990 for state-level data.

    Texas average hourly

    production wage is buoyed by

    the type of manufacturingprevalent: aerospace,

    automobiles and parts,

    chemical, high-tech and oil

    field equipment. The state

    ranked No. 16 for its average

    hourly wage ($19.32) in

    November, which was higher than

    the national average of $18.85.

    LOCAL ECONOMIC SNAPSHOT | PRODUCTION AND WAGES

    By SHERYL JEANStaff Writer

    [email protected]

    By KYLE ALCOTTStaff Writer

    [email protected]

    U.S. manufacturing jobs have fallen to a level not seen since World War II (1941 to be exact). The industrydeclined dramatically in the last 30 years in Texas and across the U.S., because, among other reasons,companies sought lower-wage workers offshore, and automation reduced the number of employees needed.Manufacturing jobs have seen a small revival in recent years, as the U.S. economy improved, business costsrose in other countries, some work returned to U.S. soil, and demand grew for products made in the U.S.A.One thing is for sure: The manufacturing industry of the future wont look much like the past.

    The bottom line

    Cheryl Abbot, Dallas regional

    economist, U.S. Bureau of Labor

    Statistics

    Roger Meiners, chairman of the

    economics department, University of

    Texas at Arlington

    Sheryl Jean, staff writer,

    The Dallas Morning News

    The share of jobs in the

    manufacturing sector will never return

    to those of decades ago if for no

    other reason than productivity gains

    have made those levels unnecessary.

    However, since the endof the recession,

    weve seen growth

    in the sector,

    particularly in

    Texas, and in a

    variety of

    industries.

    Texas and many other parts of the

    country have increased demand in

    recent years for certain types of

    skilled workers, such as welders and

    machinists. Future manufacturing

    prowess locally andnationally will be

    built around skilled,

    precision work and

    artisanal work.

    The long-term downward trend over

    the last 30 years may have hit a

    bottom. The U.S. is more competitive

    on a wage basis because average

    wages have come down, especially for

    entry-level workers, andwages in China have

    been increasing.

    States like Texas,

    which have

    right-to-work laws,

    are more

    competitive.

    Manufacturing jobs have slidsteadily as work has moved offshore

    SOURCES: U.S. Bureau of Labor Statistics; Dallas Morning News research

    Texas

    $19.32

    $20.51

    $17.47

    $15.57$18.25

    $15.631. Colo.

    $25.15

    $22.34

    $18.76 $19.23

    $20.69

    $18.26

    $18.46

    $16.99

    $16.56

    $18.72

    $17.60

    $24.46

    $18.65

    $17.17

    $18.60$18.45

    $17.61$19.57

    $20.04

    50.Ark.

    $15.18 18.06

    $16.58

    $16.66

    $20.29

    $18.64

    $20.76

    $16.73

    $19.72

    $18.58$18.88

    $18.72

    $20.77

    $17.25

    $18.48

    $18.92

    16.23

    $17.73$21.41

    $18.75

    $23.03

    $16.12

    $18.60

    Less than $17

    $17-$18

    $18-19

    $19-$20

    $20-$21

    More than $21

    November average hourly wages

    of production employees

    November:

    255.6*

    November:

    850*

    *Preliminary*Preliminary

    May 2009:

    11,868

    January

    2010:

    11,458

    December

    2007:

    13,743

    June 1979:

    19,553

    December:11,988*

    June 2009:

    11,725

    Production wages

    $19.90

    $22.66