In the July 2018 Employment Report, economist Bruce Steinberg looks at metrics surrounding the manufacturing industry.
As is common knowledge, manufacturing’s share in Gross Domestic Product continues to decline. Employers are navigating the costs of hiring new labor versus investing in automation. Growth in output per job has leveled off, as has overall manufacturing output. It’s possible that industries have reached somewhat of a technology plateau.
“We must also consider how the change in the mix of industries affects output and output per job with a shift toward higher value-added, capital intensive manufacturing (think electronics) and away from lower value and more labor intensive industries (think textiles and apparel).”