The manufacturing and construction sectors are currently facing tough times, according to recent data. According to the Institute for Supply Management’s Purchasing Manager’s Index, manufacturing contracted in May, marking 18 of the past 19 months of contraction. Meanwhile, construction spending saw a decline for the second month in April and factory orders only saw a minimal increase.
Despite the slowdown, there haven’t been significant job layoffs in these sectors. This is due in part to manufacturers being hesitant to lay off workers, fearing rehiring difficulties once the sector picks up again. However, economist Bill Adams from Comerica Bank noted that while manufacturing employment has remained stable, construction employment has been on the rise in recent months.
The physically demanding nature of manufacturing jobs makes them harder to staff than jobs that can be done remotely or with flexible work arrangements. Despite this challenge, these sectors remain crucial to the economy and will continue to play an important role in shaping its future.
