assessing risk|realizing opportunities

Manufacturing Job Loss Continues

ADP has just released its National Employment Report for August 2008 indicates that nonfarm private employment decreased 33,000 from July to August 2008. The report bears out the continued weakness in the US economy.

Employment fell in the manufacturing sector for the 24th consecutive month and large business employment declined by 28,000 jobs.

Offsetting these losses, small business added 20,000 jobs during the month while the service providing sector added 45,000 jobs.

The report confirms the pressing need for a concerted program for job creation. Sum2 advocates the adoption of The Hamilton Plan; which outlines a program to foster the development of SME manufactures to strengthen the United States economy and position it for sustainable growth.

Highlights of the ADP National Employment Report include:

This month’s employment loss was driven by the goods-producing sector which declined 78,000 during August, its twenty-first consecutive monthly decline. The manufacturing sector marked its twenty-fourth consecutive monthly decline, losing 56,000 jobs. These losses were somewhat offset by employment gains in the service-providing sector of the economy which advanced by 45,000.

Large businesses, defined as those with 500 or more workers, saw employment decline 28,000, while medium-size companies with between 50 and 499 workers declined by 25,000.

Employment among small-size businesses, defined as those with fewer than 50 workers, advanced 20,000 during the month, after posting a stronger gain of 46,000 in July.

Two sectors of the economy hit hardest by recent problems in mortgage markets have been residential construction and financial activities related to home sales and mortgage lending.

Today’s report suggests little lessening of the recent strain on employment in these industries. In August, construction employment dropped 25,000. This was its twenty-first consecutive monthly decline, and brings the total decline in construction jobs since the peak in August of 2006 to 377,000. Employment in financial activities declined 2,000 during the month.

Song: Devo, Workin in a Coal Mine.

Risk: Unemployment, manufacturing, labor unions, sustainable growth

September 4, 2008 - Posted by | manufacturing, recession, unemployment | , , , ,

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