The US manufacturing sector is grappling with significant challenges, having shed 78,000 jobs over the past three months, with a staggering 46,000 jobs lost in October alone. This downturn follows a loss of 6,000 jobs in September and a decline of 26,000 jobs in August [12d49706]. The transportation equipment manufacturing industry has been particularly hard hit, accounting for 44,000 of these job losses, largely due to strikes affecting major companies like Boeing and Textron [12d49706].
In October 2024, US industrial production declined by 0.3%, with Boeing workers' 53-day strike contributing to a 0.5 percentage point reduction in production for both September and October [e155d771]. Manufacturing output fell by 0.5% in October after a 0.3% drop in September, with aerospace equipment output plunging 5.8% in October following an 8% decline in the previous month [e155d771]. The strike by 33,000 machinists at Boeing, which began on September 13, has been a major contributor to the job losses, alongside a smaller strike involving 5,000 machinists at Textron that lasted from September 23 to October 21 [12d49706].
Additionally, Hurricanes Milton and Helene contributed to a 0.1 percentage point reduction in October production, further complicating the situation for manufacturers [e155d771]. Overall, the manufacturing sector has seen a decline of 85,000 jobs (0.7%) in the last six months and a drop of 50,000 jobs (0.4%) over the past year [12d49706]. In contrast, November 2023 marked the best month for job creation in the last year, with a gain of 25,000 jobs, indicating a potential rebound for the sector [12d49706].
The National Association of Manufacturers is advocating for tax incentives and regulatory relief to support the struggling industry, highlighting the urgent need for policy changes to bolster employment and economic stability in manufacturing [12d49706]. Boeing delivered only 14 jetliners in October, the lowest in nearly four years, reflecting the severe impact of the strikes and elevated borrowing costs that have hindered US manufacturing growth [e155d771]. A recent survey from Creighton University revealed that the Mid-America Business Conditions Index has dropped to 48.1 in September, signaling a contraction in economic activity across nine central U.S. states, where 4,900 manufacturing jobs have been lost since the beginning of 2024 [5f4f1d6d]. The employment index also fell to 44.3 in September, reflecting ongoing difficulties in job creation and retention [5f4f1d6d]. As inflation continues to be a pressing issue, with 39.1% of supply managers citing it as their top challenge, the outlook for the manufacturing sector remains uncertain [7ce601b0].