Latest job report gets mixed reaction from U.S. business analysts

Labor report gets cautious reception

 

The release of the September job and unemployment figures on October 5 by the Bureau of Labor Statistics drew a mixed reaction from business analysts and leaders.

For some, it was a sign that the economy continues to slowly move forward and that hiring in all industries may be on the rise, with manufacturers cautiously welcoming the lowest unemployment figures since January 2009. Other people took to social media to claim that the figures had been manipulated by the government and that the economy remains in serious trouble, an allegation that was quickly refuted by economists and the BLS.

According to USA Today, the announcement that 114,000 jobs were added in September is reasonably good news for U.S. manufacturing, despite hiring slowing down within the industry. Manufacturers contributed 16 percent of new jobs in the first seven months of 2012 and while the latest job figures show that the healthcare, transportation and warehousing sectors were the major sources of job creation/employment, companies that are considering their manufacturing strategy for the next financial year can expect to see small gains in orders, especially once the Presidential election has been negotiated safely.

The problem that the manufacturing industry is experiencing at the moment is uncertainty. While the fiscal cliff has been cited by industry analysts as a reason for a leveling out of hiring by manufacturers, coupled with a downturn in global economies, employers are cautiously waiting to see which candidate ends up with the key to the White house before making concrete decisions on manufacturing strategy.

However, the automobile industry is still adding jobs and production rates for commercial jets are also on the rise. Figures released by the Center for Automotive Research estimate that auto manufacturers will add an additional 156,000 jobs by 2016, with the majority of that growth coming from parts suppliers in the Midwest and Southeast of the country.

Companies such as Boeing and Spirit AeroSystems will be hiring at a "measured pace," with aircraft workers and engineers expected to be in high demand. In an interview with USA Today, a Sprint spokesman revealed that the company would be looking to bring in 679 domestic workers as it continues to provide parts for the airline industry, with Boeing also taking advantage of increased orders.

"By the end of the year, Boeing expects to have hired 12,000 to 15,000 workers, mostly in Washington and South Carolina to support commercial aircraft manufacturing," said John Dern, a company spokesman.