But some regions are faring better than others, the Economic Innovation Group reports. Still, factory investment in key sectors and lower interest rates should help create more good manufacturing jobs in the coming years.
The United States now has more manufacturing jobs than before the COVID-19 pandemic, given that this is the first time since the 1970s that manufacturing has regained all the jobs lost in a recession. , a particularly remarkable feat.
However, these job gains were not evenly distributed, with some regions doing better than others at attracting new factory jobs.
Economic Innovation Group (EIG) We looked at recent increases in factory employment. Manufacturing lost 650,000 jobs during the coronavirus pandemic, but had regained all of those jobs by the end of last year.
In fact, the country now has 12.9 million manufacturing jobs, up from 12.8 million in 2019. Although this is still down from the approximately 18 million jobs that existed at the industry’s peak in 1970. Large-scale factory currently under construction There is reason to be optimistic about further job growth in manufacturing semiconductors, electric vehicles, batteries, clean energy and more across the country.
However, the manufacturing landscape in the new country is likely to be different than in past decades. EIG researchers found that some states have fared better than others in recent years when it comes to manufacturing job growth, with five states accounting for nearly two-thirds of all growth since 2019. discovered.
Texas topped the list, gaining nearly 50,000 manufacturing jobs from 2019 to 2023, an increase of 5.5%. Florida is next with about 37,000 new factory jobs, followed by Georgia (20,303). Arizona (16,797); and Utah (15,990).
Meanwhile, 20 states have yet to recover factory jobs lost during the pandemic recession. Washington remains nearly 20,000 jobs short, and New York remains more than 18,000 jobs short. Industrial heartland states also continue to struggle to regain lost factory jobs, with Ohio losing 13,441 jobs. 12,449 people are missing in Michigan. And Wisconsin is short by nearly 9,000 jobs.
The types of places where manufacturing gathers also differ. EIG found that “the pandemic has significantly altered the distribution of manufacturing job gains across different county types,” with rural areas losing factory jobs. Meanwhile, smaller urban counties (defined as cities with a population of 50,000 to 100,000, or suburban/urban areas with a population of 50,000 or more) will see the largest increases, with production increasing from 2019 to 2023. The industry accounted for 61% (!!!) of the employment increase.
Similarly, individual sectors fared better than others, with the food and beverage sector gaining the most jobs, followed by the transportation sector (considering investments from the Bipartisan Infrastructure Act of 2021). That’s not surprising). The computer and electronics industry also recorded strong growth, although employment in this sector is still 39% lower than its peak in 2000.
Some manufacturing sectors have yet to regain jobs lost during the pandemic, including metal manufacturing, furniture, textiles, paper and printing. Overall, manufacturing employment growth continues to lag behind other economies, EIG researchers said.
However, there are reasons to be optimistic. As mentioned above, the construction of factories to make things like semiconductors is likely to create even more jobs, with large factories in Ohio, Arizona, Texas, and other states scheduled to open in the next few years. high interest rate Also suffering from increased employment in factories Lower interest rates should provide some relief for most of this year.
The key, of course, is to see everything through to the end. Over the past few years, the United States has been focused on high-tech electronics, the future of clean energy, or whatever else is ahead. Policymakers must continue to make significant investments in key areas, and our leaders will not hesitate to enforce our trade laws when bad actors seek to undermine our efforts. You can’t.
If the United States gets its industrial policy right, there will be more factory jobs.
