U.S. manufacturing surged in June, with motorized vehicle and parts leading the way.
Manufacturers added 36,000 jobs last month, according to a breakdown by industry sector released today by the U.S. Bureau of Labor Statistics. Motorized vehicle and parts accounted for an increase of 12,000 jobs. That gain occurred after the category incurred an adjusted loss of 8,000 jobs in May.
The U.S. auto industry is facing a softening in demand. The industry also is adjusting to plummeting demand for cars as consumers buy more crossover vehicles and trucks.
The overall transportation equipment posted a gain of 12,500 jobs in June.
Job activity in manufacturing was centered in durable goods, which had an increase of 32,000 jobs. Other job gainers included fabricated metal products (up 7,100 jobs), machinery (up 4,400) and primary metals (up 2,900).
Gains were widespread among durable goods industries. The few job losers included furniture and miscellaneous manufacturing, each down 800 jobs.
Manufacturing totaled 12.713 million jobs on a seasonally adjusted basis last month. That was up from 12.677 million in May and 12.428 million in June 2017.
Jobless Rate Rises
The U.S. unemployment rate rose in June to 4%, up from 3.8% in May, the bureau said in a statement. More people were looking for work last month, causing the rate increase. It was the first time the rate rose in 10 months.
Total non-farm employment rose by 213,000 jobs last month. The median forecast of economists surveyed by Bloomberg was an increase of 195,000 jobs.
Manufacturing jobs peaked in June 1979 (19.6 million on a seasonally adjusted basis, 19.7 million unadjusted). That sank to a low of 11.45 million adjusted and 11.34 million unadjusted in February 2010 following a severe recession caused by the 2008 financial crisis.
Since that low, new manufacturing jobs have been created requiring increased skills because of increased automation and technology in factories.