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Blog Category: Chief Economist Mark Doms

U.S. Recognizes Another Year of Export Growth

Bar chart: U.S. exports in millions

Guest blog post by Francisco Sánchez, Under Secretary of Commerce for International Trade and Mark Doms, Under Secretary of Commerce for Economic Affairs

Last year was another record-setting year for U.S. exporters.

Data released today shows that in 2012, American exports totaled $2.2 trillion, eclipsing the previous record of $2.1 trillion in exports in 2011.

This represents more than just numbers on a spreadsheet; it’s further proof that “Made in the USA” products are in demand all over the world.  It also means that more U.S. businesses are seizing the great opportunities in the global markets, continuing to help pave our nation’s road to economic recovery. 

The increase in U.S. exports in both goods and services continues an upward trend that began in 2009. This trend has contributed to the creation of 6.1 million American private-sector jobs during the last 35 months. It is a direct result of President Obama’s National Export Initiative, part of a government strategy to strengthen our economy, support the creation of American jobs, and ensure long-term growth.

U.S. Manufacturing Continues to Create Jobs in the U.S.

Guest blog post by Mark Doms, Department of Commerce Chief Economist, Economics & Statistics Administration

Earlier today, the Bureau of Labor Statistics (BLS) released a report showing that the private sector added 172,000 jobs last month, and overall employment rose by 163,000. While there’s more work to be done, the economy is creating jobs on a consistent basis. The economy has added private sector jobs for 29 straight months, for a total of 4.5 million jobs. In fact, since the beginning of the year, the economy has added over 1.1 million private sector jobs. Today’s employment report provides further evidence that the U.S. economy is continuing to recover from the deepest recession since the Great Depression.

Additionally, the BLS report also showed that the manufacturing sector continues to be a bright spot, which is especially important for middle class families, because these jobs pay high wages and provide high levels of benefits.

The good news is that the U.S. manufacturing sector’s recovery continues: 532,000 new manufacturing jobs have been created over the past 30 months, with 25,000 being added in July. In terms of production, manufacturing output is up 19.8 percent from the trough reached in June 2009.

A part of manufacturing that has been consistently strong is the motor vehicles and parts industry, which has added 165,000 jobs since June 2009. Further, production of cars and trucks in the U.S. reached 10.5 million units at an annual rate in June, a sharp contrast to the shockingly low level of 3.7 million units witnessed in January, 2009.  To continue the revival in manufacturing jobs and output, it is crucial that we implement President Obama’s proposals providing tax incentives for manufacturers, supporting training for the workforce, creating manufacturing hubs, and ending tax breaks for companies that send jobs overseas and provide tax incentives for companies bringing jobs back to the United States.

Summary of Twitter #MFGChat on ESA's Manufacturing Jobs report

Today @CommerceGov, @EconChiefGov, and @TheMFGInstitute joined the manufacturing community on Twitter to discuss the Economic and Statistics Administration’s “The Benefits of Manufacturing Jobs” report. #MFGChat is held monthly. Below is a selected transcript of the conversation.

Join Chief Economist Mark Doms and Gardner Carrick of The Manufacturing Institute for a Twitter Chat on Manufacturing Jobs on Friday

Following the release of the Economic and Statistics Administration’s “The Benefits of Manufacturing Jobs” report, Chief Economist Mark Doms and Gardner Carrick, Vice President of Strategic Initiatives at The Manufacturing Institute, will be holding a 30-minute Twitter chat responding to your questions about the report and the state of American manufacturing on Friday, May 11th at 1:00pm ET.

Manufacturing jobs provide benefits to workers with higher overall compensation than other sectors, and to the economy through innovation that boosts our nation’s standard of living.  Specifically, this report shows that:

  • On average, hourly wages and salaries for manufacturing jobs are $29.75 an hour compared to $27.47 an hour for non-manufacturing jobs. Total hourly compensation, which includes employer-provided benefits, is $38.27 for workers in manufacturing jobs and $32.84 for workers in non-manufacturing jobs, a 17 percent premium.
  • Even after controlling for demographic, geographic, and job characteristics, manufacturing jobs maintained significant wage and benefit premiums.  
  • The educational attainment of the manufacturing workforce is rising steadily.  In 2011, 53 percent of all manufacturing workers had at least some college education, up from 43 percent in 1994.
  • The innovative manufacturing sector relies more heavily on STEM education than non-manufacturing.  For instance, nearly 1 out of 3 (32 percent) college-educated manufacturing workers has a STEM job, compared to 10 percent in non-manufacturing. 
  • Higher educational attainment for manufacturing workers carries higher premiums and the size of the premium, including or excluding benefits, increases consistently with educational attainment.
  • Furthermore, the compensation premium has risen over the past decade across all levels of educational attainment.

Here's how you can participate:

  • Starting now, ask questions for Mark and Gardner on Twitter using the hashtag #mfgChat or at our Facebook page or in the comments here.
  • On Friday, May 11th, at 1:00p.m. EST begin following @EconChiefGov @TheMFGInstitute and #mfgChat to follow the conversation.
  • Check back on Commerce.gov later on Friday to see a summary of the conversation once it is completed at 1:30

 Be sure to follow @EconChiefGov on Twitter for the latest key economic indicators.

Economic and Statistics Administration Releases Report on "The Benefits of Manufacturing Jobs"

Stats and figures in Visual Form

Today the Economic and Statistics Administration released a report entitled "The Benefits of Manufacturing Jobs" (PDF) that explores benefits to workers and to our nation of a strong manufacturing sector. The current economic recovery has witnessed a welcome return in manufacturing job growth.  Since its January 2010 low to April 2012, manufacturing employment has expanded by 489,000 jobs or 4 percent— the strongest cyclical rebound since the dual recessions in the early 1980s.  From mid-2009 through the end of February 2012, the number of job openings surged by over 200 percent, to 253,000 openings. Coupled with attrition in the coming years from Baby Boomer retirements, this bodes well for continued hiring opportunities in the manufacturing sector.

The rebound in manufacturing is important, not only as a sign of renewed strength, but also because manufacturing jobs are often cited as “good jobs:” they pay well, provide good benefits, and manufacturing workers are less likely to quit than workers in other private sector industries. In fact, our analysis finds evidence in support of these claims.  Specifically, this report shows that:

What Others Are Saying About the COMPETES report

On Friday, the Commerce Department unveiled the COMPETES Report: A Roadmap for Strengthening U.S. Competitiveness. The report makes three important findings:

  • Federal investments in research, education and infrastructure were critical building blocks for American economic competitiveness, business expansion and job creation in the last century;
  • Failures to properly invest in, and have comprehensive strategies for, those areas have eroded America’s competitive position; and,
  • In a constrained budgetary environment, prioritizing support for these pillars are imperative for America’s economic future and provide a strong return on investment for the U.S. taxpayer.

The Business Roundtable and the U.S. Chamber of Commerce wrote about the report and CNN asked a Commerce Innovation Advisory Board member about it (below).

Additionally, members of the Innovation Advisory Board recorded their own videos highlighting parts of the report they felt were most important.

Commerce Department Releases COMPETES Report: A Roadmap for Strengthening U.S. Competitiveness

Secretary Bryson Releases the America COMPETES report on American competitiveness

The U.S Department of Commerce today delivered to Congress a comprehensive report on “The Competitiveness and Innovative Capacity of the United States.”  The report serves as a call to arms, highlighting bipartisan priorities to sustain and promote American innovation and economic competitiveness. 

At 10am ET, watch Secretary Bryson present the report and then a distinguished panel discuss the findings. [The event has now concluded]

The report makes three important findings:

  • Federal investments in research, education and infrastructure were critical building blocks for American economic competitiveness, business expansion and job creation in the last century;
  • Failures to properly invest in, and have comprehensive strategies for, those areas have eroded America’s competitive position; and,
  • In a constrained budgetary environment, prioritizing support for these pillars are imperative for America’s economic future and provide a strong return on investment for the U.S. taxpayer.

The report was mandated as part of the America COMPETES Reauthorization Act of 2010, which was signed into law by President Obama in January last year. The report addresses a diverse range of topics and policy options, including: tax policy; the general business climate in the U.S.; barriers to setting up new firms; trade policy, including export promotion; the effectiveness of Federal Research and Development policy; intellectual property regimes in the U.S. and abroad; the health of the manufacturing sector; and science and technology education.

The full report, as well as additional resources, can be found online at www.commerce.gov/competes

Some key findings of the report include:

Commerce Department Agencies Unveil New Website Home Pages

Two agencies of the Department of Commerce unveiled new home pages for their websites in December—the result of efforts to make news and data more readily available and easily accessible to users. The agencies studied user feedback and website best practices to create a more visual and less confusing approach to the mission of informing the public. Both feature links to agency blogs written by their leadership and guest authors and links to economic indicators and career and business opportunities.

On December 20, the U.S. Patent and Trademark Office (USPTO) announced the launch of the newest version of its website at www.uspto.gov, while at the same time making its retired home page available to users in the transition to its new iteration. In announcing the change, USPTO said it is “just the first of several new changes . . . in the coming months that will help modernize our services for online visitors.” The USPTO is encouraging both positive and negative comments and suggestions that may help the agency with future design enhancements through newhomepage[at]uspto[dot]gov.

On the same day, Commerce’s U.S. Census Bureau unveiled its overhauled website with features designed to improve navigation and ease of use, and to make statistics more discoverable, with an interactive map showing business and demographic information for the U.S., as well as states and counties. Like USPTO, this is the start of a series of anticipated ongoing improvements to the Census Bureau website. | census.gov home page