CALIFORNIA BUSINESS MINUTE
Manufacturing
09-03-09
Hi, I am Tim Johnson and welcome to the California Business Minute.
In a recent analysis of Bureau of Labor Statistics data on employment in
manufacturing for 2007-2008, every state in the nation lost jobs except
for Alaska, which remained the same. The overall national loss was 1.52
million manufacturing jobs – from 13.44 million in July 2008 to 11.92
million in July 2009.
The five states that fared the worst with job losses were Ohio (127,000 job
losses); California (123,400 job losses); Michigan (108,900 job losses);
Illinois (83,500 job losses); Indiana (80,900 job losses). For California,
there were over 1.4 million manufacturing jobs during this period, but from
a percentage basis it has only suffered a loss of 8.7 percent. While the
loss of 123,000 manufacturing jobs is significant, it’s percentage loss is
far less than compared to others such as Ohio which has a loss of 17.3 percent,
Illinois a loss of 12.6 percent, Indiana 15.6 percent, Oregon lost 15 percent,
Michigan nearly 20 percent and Pennsylvania by 11.4 percent but to illustrate
significant impacts, the state of Washington has lost 27 percent of its
manufacturing sector.
In yet another report, the manufacturing sector lost nearly 2 million jobs over
a 19-month period ending in July and isn't expected to add employment until 2011,
according to the National Association of Manufacturers', NAM annual Labor Day
report.
The sector lost 1.96 million jobs between December 2007 and July 2009 primarily
due to downturns in consumer durable purchases and housing which illustrates that
the majority of manufacturing jobs have been lost during July 2008 To July 2009
NAM forecasts 65,000 additional job losses in 2010, down from the projected 1.6
million expected by the end of 2009. However, NAM expects production will increase
by 6.4% in 2011 and 2012, leading to an employment increase of 399,000 and 426,000,
respectively. NAM forecasts 89,000 manufacturing jobs created in 2013, remaining
unchanged in 2014.
I am Tim Johnson and this has been the California Business Minute.
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