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Blog Category: Economics and Statistics Administration
There is a powerful link between America’s ability to make things and America’s ability to innovate, compete, and create good jobs, as Secretary John Bryson said today when he spoke to CEOs, students and faculty at “The Future of Manufacturing in the U.S.” conference at the Massachusetts Institute of Technology. The Secretary took the opportunity to discuss the importance of manufacturing in boosting U.S. economic growth, job creation and exports, as part of the administration's ongoing efforts to encourage companies to build things in America and sell everywhere around the globe.
Bryson also released a new U.S. Commerce Department Economics and Statistics Administration (ESA) report titled “The Benefits of Manufacturing Jobs,” an analysis of wages and benefits of manufacturing workers, which provides fresh evidence that manufacturing jobs encourage innovation and support economic security for America’s middle class. The report finds that total hourly compensation for manufacturing workers is 17 percent higher than for non-manufacturing workers. It also shows that manufacturing jobs are becoming more skilled and heavily reliant on science, technology, engineering and math (STEM) fields, and that manufacturing is responsible for 70 percent of our private sector R&D, 90 percent of our patents, and 60 percent of our exports.
After a decade in which the United States lost many manufacturing jobs, American manufacturers have added back 489,000 jobs since January 2010—the best streak since 1995. In the first four months of 2012 alone, the U.S. manufacturing sector added 139,000 jobs. At the same time, the number of job openings in manufacturing has more than doubled.
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.
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:
2010 Census Shows More than Half of Native Hawaiians and Other Pacific Islanders Report Multiple Races
Commerce's U.S. Census Bureau released today a 2010 Census brief, The Native Hawaiian and Other Pacific Islander Population: 2010 (PDF), that shows more than half (56 percent) of this population, or 685,000 people, reported being Native Hawaiian and Other Pacific Islander in combination with one or more other races. This multiracial group grew by 44 percent from 2000 to 2010.
Overall, 1.2 million people, or 0.4 percent of all people in the United States, identified as Native Hawaiian and Other Pacific Islander (NHPI), either alone or in combination with one or more races. This population grew by 40 percent from 2000 to 2010. Those who reported being Native Hawaiian and Other Pacific Islander alone totaled 540,000, an increase of 35 percent from 2000 to 2010. The multiple-race Native Hawaiian and Other Pacific Islander population, as well as both the alone and alone-or-in-combination populations, all grew at a faster rate than the total U.S. population, which increased by 9.7 percent from 2000 to 2010. Census press release
Commerce's U.S. Census Bureau counts every resident in the United States. It is mandated by Article I, Section 2 of the Constitution and takes place every 10 years. The data collected by the decennial census determine the number of seats each state has in the U.S. House of Representatives and is also used to distribute billions in federal funds to local communities.
Yesterday, the Census Bureau held "Profile America Forum on the Asian Population," a presentation on the release of a 2010 Census brief on the Asian population in the United States.
Commerce's Census Bureau Wednesday released a 2010 Census brief, Households and Families: 2010, (PDF) that showed interracial or interethnic opposite-sex married couple households grew by 28 percent over the decade from 7 percent in 2000 to 10 percent in 2010. States with higher percentages of couples of a different race or Hispanic origin in 2010 were primarily located in the western and southwestern parts of the United States, along with Hawaii and Alaska.
A higher percentage of unmarried partners were interracial or interethnic than married couples. Nationally, 10 percent of opposite-sex married couples had partners of a different race or Hispanic origin, compared with 18 percent of opposite-sex unmarried partners and 21 percent of same-sex unmarried partners. | Full Census release
Guest blog post by Deputy Commerce Secretary Rebecca Blank
America’s entrepreneurs, businesses, and workers are the primary source of new ideas that drive innovation. Patents, trademarks and copyrights–the main protections in our IP system–are critical tools that help commercialize innovative, game-changing ideas, from advances in healthcare technology to improved consumer products. By creating a better environment for our private sector to capitalize those ideas, IP protections help foster the innovation and creativity that leads to a stronger economy and more jobs.
Today, the U.S. Commerce Department released a comprehensive report showing that intellectual property protections have a direct and significant impact on the U.S. economy. The report, entitled “Intellectual Property and the U.S. Economy: Industries in Focus,” finds that IP-intensive industries support at least 40 million jobs and contribute more than $5.06 trillion dollars to, or nearly 34.8 percent of, U.S. gross domestic product (GDP).
While IP is used in virtually every segment of the U.S. economy, our report identifies the 75 industries that use patent, copyright or trademark protections most extensively. These “IP-intensive” industries support more than a quarter of all jobs in the United States. Twenty-seven million of those are either on payroll or under employment contracts, working directly for the IP-intensive industries, and nearly 13 million more are indirectly supported through the supply chains that service these industries. In other words, every two jobs in IP-intensive industries support an additional job elsewhere in the economy.
Ed. Note: This post is part of a series following the release of the 1940 Census highlighting various Commerce agencies and their hard work on behalf of the American people during the 1940s through today.
As the U.S. population has changed dramatically since 1940, so too has the U.S. economy. Just a few years prior to the 1940 Census, in 1935, employees of the Department of Commerce and the National Bureau of Economic Research created what we call the National Income and Product Accounts (NIPA), a comprehensive set of economic accounts for the nation that provides unparalleled insight into the workings of our economy.
Let’s take a quick glance at the NIPAs and see how things have changed over the last 72 years. One commonly used measure of standards of living is GDP per capita—the total output of the nation divided by the population. Looking to national accounts table 7.1, we see that in 1940 U.S. GDP per capita was $8,824 in inflation-adjusted dollars. By 2011, it had increased nearly fivefold to $42,671. Over that period, the structure of the economy changed with services accounting for an ever increasing for spending. In 1940, consumer spending on services (everything from haircuts to heart surgery), according to NIPA table 1.1.10 accounted for 30 percent of GDP. By 2011, it was 47 percent—nearly half of economic activity.
Commerce's Census Bureau has released a 2010 Census brief, The Asian Population: 2010 (PDF), that shows the Asian population grew faster than any other race group over the last decade. The population that identified as Asian, either alone or in combination with one or more other races, grew by 45.6 percent from 2000 to 2010, while those who identified as Asian alone grew by 43.3 percent. Both populations grew at a faster rate than the total U.S. population, which increased by 9.7 percent from 2000 to 2010.
Out of the total U.S. population, 14.7 million people, or 4.8 percent, were Asian alone. In addition, 2.6 million people, or another 0.9 percent, reported Asian in combination with one or more other races. Together, these two groups totaled 17.3 million people. Thus, 5.6 percent of all people in the United States identified as Asian, either alone or in combination with one or more other races. Census press release