America has lost several millions of manufacturing jobs over the years according to a study produced for Conexus Indiana by Srikant Devaraj, PhD and Michael J. Hicks, PhD from Ball State University.
The authors state that about 87 percent of the job losses were due to productivity gains, technology gains (robots), and better supply chains. What was quite interesting was that about four percent of manufacturing jobs have been lost to international trade (aka outsourcing).
This is somewhat hard to believe when you look at the shuttered factories, demographic changes, and an overall lack of students entering technical schools.
The report also found that:
• Since the end of the recession, the economy has added 750,000 manufacturing jobs.
• Biggest job losses occurred in low productivity sectors with low transportation costs.
The report points out the baby boom generation retirees are leaving behind solid, well-paying jobs and younger workers are filling those jobs at an unprecedented rate. Recent new hire salaries averaged $20.06 per hour — almost $42,000 a year. “As millennials move into the workforce, wage gaps between new and existing jobs are primarily age- and tenure-related.”
Despite this, I thought it was an interesting read and you can access it right here: 2017-0107-conexus2016-advmfg.
Quote for the Day:”Never confuse a single defeat with a final defeat.” — F. Scott Fitzgerald, US author