Manufacturing Employment Falls

While the overall economy added jobs in January, the manufacturing sector continued to lose jobs with the industry shedding 25,000 employees during the month, according to a report from the Bureau of Labor Statistics.

During the fourth quarter, manufacturing employment declined to 14,337,000,

a loss of 16,000 jobs from Q3 manufacturing employment of 14,353,000, according to the BLS report, which attributed most of the job losses in January to small losses in its component industries. Those industries reporting significant declines included motor vehicles and parts (-10,000), chemicals (-5,000), and semiconductors and electronic components (2,000). After reaching an employment low in February 2004, manufacturers added 85,000 workers through August, but the trend has since turned downward, with 61,000 jobs lost.

Total nonfarm payroll employment increased by 146,000 in January, and the unemployment rate decreased to 5.2%, the Bureau of Labor Statistics reported. Job growth continued in several serviceproviding industries. Total employment, seasonally adjusted, in January was little changed at 140.2 million. For more information, see see http://www.bls.gov/news.release/ empsit.nr0.htm.