Jobs report: Manufacturing loses 12,000 jobs in February

U.S. manufacturing returned to losing jobs in February as the sector collectively lost 12,000 jobs from durable and nondurable goods production, mirroring a loss of 92,000 jobs in the wider nonagricultural economy. Most of the manufacturing jobs lost were in the smaller nondurable goods sector, which, based on preliminary figures released March 6 by the Bureau of Labor Statistics, lost twice as many jobs as the larger durable goods section. Last month’s loss of 5,000 total manufacturing jobs was not adjusted.

Nondurable goods manufacturing, based on the latest figures, employs about 4,772,000 people, down 8,000 from 4,780,000 in January. Plastics and rubber manufacturing lost approximately 4,200 jobs by itself, even more than the net loss in all durable goods sectors. Job losses were widespread in nondurable goods production — the hit to plastics employment was followed by a 2,100 job loss in beverage and tobacco, a 1,700 job loss in food manufacturing, and losses of less than 1,000 jobs in all but two other nondurable goods industries. Textile mills, textile product mills, apparel, printing and petroleum firms all lost between 400-100 jobs each, while chemical manufacturing added 1,000 and paper manufacturing hired 800.

The larger durable goods sector shrank by 4,000 jobs and now employs an estimated 12,573,000 people in the United States. The largest single-industry change in durable goods manufacturing was a loss of 4,000 jobs in transportation equipment manufacturing, followed by a loss of 2,400 workers in wood products production. These sectors saw more sectors hiring than in durable goods, including 2,100 new hires in fabricated metal product manufacturing and 1,100 in machinery, but those gains weren’t enough to beat the losses in motor vehicles and elsewhere.

Manufacturing-adjacent fields were similarly effected. Transportation and warehousing firms shed 11,000 jobs, while mining and construction showed “little change,” the Bureau reported. The Bureau additionally noted that, of the 92,000 jobs lost in the nonfarm economy, strike activity accounted for an estimated 37,000 jobs temporarily lost.

What people are saying

U.S. Secretary of Labor Lori Chavez-DeRemer noted the significant impact of healthcare strikes on the headline employment figure, as well as bad winter weather, but pointed out the unemployment rate was unchanged and highlighted rising wage growth for U.S. manufacturing workers.

“While record-breaking strikes and bad winter weather dragged down February nonfarm employment, the unemployment rate held steady, and there are several positive signs for our economy that continue to show American workers are recovering from the mess left behind by Biden,” Secretary Chavez-DeRemer said. “President Trump has successfully reignited wage growth, which continued to accelerate in February – rising 3.8% year over year. Factory workers’ wages in particular have improved from a $830 loss to an impressive $2,400 gain under the Trump Administration. Additionally, while federal employment has hit its lowest level on record, private sector job growth rose by half a million during the President’s first year in office and 60,000 jobs have been created already this year. 

In a separate statement, Appcast Chief Economist Andrew Flowers wrote that despite the impact of healthcare strikes, the wide reach of the job losses suggested more substantial workforce weakness.

“The headline number is bad and after you dig into the details, it isn’t much better,” Flowers said.” The shocking decline in employment in February by 92,000 was surely affected by a healthcare strike, and government job cuts as well. But looking at private employment excluding healthcare, so removing the two largest distortions in the data, still shows a decline of 58,000. So, it's not just a healthcare strike effect. When labor market growth depends on a sole industry, we will inevitably end up with large swings like today.”