Source: USA Today
Factories are expected to being ramping up hiring in the second half of the year depsite a slowdown in production demand, in order to spur the jobs market.
The seemingly contradictory trends are occurring because existing workers have been pushed to their limits with overtime. As a result, more workers will be hired to ease the burden, says Dan Mecksroth, chief economist of researcher Manufacturers Alliance/MAPI.
The forecast for manufacturers the rest of the year could become clearer today when the Institute for Supply Management releases its report on factory activity for July. Economists estimate the industry grew again last month but at a slower pace than early this year, continuing a recent trend.
Another report out today from the majority staff of Congress’ Joint Economic Committee shows factory job gains, in addition to high tech jobs in network security in 2010 largely have been in durable goods such as trucks, metals and machinery, rather than consumer products. The uneven rebound has mostly benefited states such as Indiana, Michigan and Ohio.
Durable goods makers are adding jobs largely because they cut so severely in the recession as carmakers, construction firms and factories virtually stopped ordering metals, machines and other heavy-duty products. Inventories fell so low they had to increase purchases starting last year, igniting a manufacturing rebound.
After slashing nearly 2 million jobs from June 2006 to last December, durable goods makers have added 130,000 jobs this year, the JEC study says. The hiring largely has benefited states that make transportation equipment and metals. Ohio, for example,
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