Interactive Data Visualization: The Connection Between Manufacturing Jobs and Exports

By Hank Robison and Rob Sentz

We recently observed that there are only about 50 manufacturing sectors out of 472 (6-digit NAICS) that actually gained jobs over the past 10 years. This made us wonder because we keep hearing that manufacturing output is actually improving. Politicians and policymakers tend to assume that an uptick in output would naturally result in an uptick in employment. So we investigated.

What we found

We placed national export data on top of job totals for each of the 472 manufacturing sectors, and found that manufacturing exports (inflation-adjusted) actually grew by 56% from 02-10 while manufacturing jobs contracted by 23%. Growth in exports have clearly not resulted in more domestic jobs. See the interactive graphic at the bottom of this post for a visualization.

Across the manufacturing sectors we are actually seeing a predominantly inverse relationship between jobs and exports. To explore this further, we placed each of the 472 industries into one of four categories (again see the graphic):
1) Those that gained both exports and jobs,
2) Those that gained exports but lost jobs,
3) Those that lost exports but gained jobs, and
4) Those that lost both exports and jobs.

Some observations

Those advocating for increased exports as a way of resuscitating jobs in manufacturing need to look at this data. Only 11% of all manufacturing sectors showed gains in jobs and exports, which is not a huge surprise given manufacturing decline. 19% lost jobs AND exports at the same time. Now here is the stat really worth noting — 71% of all manufacturing sectors increased their exports while decreasing their domestic workforce.

There are some political ramifications here. The Obama Administration has proposed exports as a key to kick-starting the U.S. labor market (see this post from Brookings). Economists and policy experts as well as all of us here at EMSI are huge fans of improving exports. Exports are a principal source of foreign exchange and an important driver for U.S. goods. Export industries also tend to pay higher wages and connect with the rest of the economy through greater multiplier effects, which mean they are key for income and job formation.

However, as the data suggests things are not that simple. Domestic manufacturers appear to be outsourcing large parts of their work to foreign suppliers. In the process, they employ fewer domestic workers but become more competitive in foreign markets. As a result, exports go up while employment goes down. This is something that policymakers need to consider before pinning too much hope on exports as a way of reviving manufacturing sector employment.

Conclusion

There may be a conflict of goals here. On one hand we want high-wage, high-benefit jobs; on the other, “full employment.” But in manufacturing can we have both? If wages, and benefits are pushing producers to outsource then either wages go down (an unattractive prospect), or we adopt policies that spawn productivity growth needed to support high-wages. Are there any other choices?

Data Graphic

In this interactive graphic, you can explore EMSI’s data on manufacturing jobs and exports. The data is based on 4-digit NAICS manufacturing sectors. NOTE: 6-digit data was used in the previous analyis.

Click on the chart to highlight an industry or use the drop-down box. Data in the top half of the graphic shows percentage change in jobs (on the y-axis) and exports (on the x-axis). The bottom line graph simply compares manufacturing jobs and exports over time.

As we highlighted above, 71% of all manufacturing sectors increased their exports while decreasing their domestic workforce from 2002 to 2010.

For more information, email Rob Sentz.

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oliticians and policymakers tend to assume that an uptick in output would naturally result in an uptick in employment. So we https://rebelmouse.com/the3weekdiet/

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on manufacturing jobs and exports. The data is based on 4-digit NAICS manufacturing sectors. NOTE: 6-digit data was used in the previous analyis.where is garcinia cambogia sold

manufacturing job sector

Day by day we have found the process of job searching and job haunting is quite different and job seekers are having fewer problems in their job searching process. Most probably due to less effective job searching methods of we may call it as traditional job searching methods people were getting less effective results. This would happen in manufacturing sector also; here in the above report also we have found some points about the simultaneous relation in between jobs and exports. Job opportunities in Ireland

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nice observations, its really intresting , i think nw days more oportunity in architecture jobs in kerala, anyway thanks for the valuable informationadmin

This is now moving into

This is now moving into lower management as well. Silicon employees are better than humans as they need a different sort of health care, and you can fix them by swapping parts until they work again. This is why the shortage of folks who can fill jobs comes about, higher skills are needed. Essentially any job e-papierosy joyetech that consists of repeating the same process over and over can and will be automated.

Missing item of significance in the analysis

Rather that saying manufactures are outsourcing parts of the work to foreign locations one needs to add that they are also outsourcing the work to silicon based employees. (That is automation). This is now moving into lower management as well. Silicon employees are better than humans as they need a different sort of health care, and you can fix them by swapping parts until they work again. This is why the shortage of folks who can fill jobs comes about, higher skills are needed. Essentially any job that consists of repeating the same process over and over can and will be automated.

Absolutely

You are right on. Productivity is a tremendously important part of the analysis, although from personal experience I also know a number of American manufacturing companies which purchase many subcomponents from abroad.

Automated or not, I think having a strong domestic manufacturing base is important. Even if you are just designing the product, it is important to understand how it is made and this is typically easier if you can visit the plant without flying halfway around the world.

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Article was informative and objective without right-wing, anti-urbanist slant of other articles which detract from an otherwise stellar blog. Would love to see more of these articles.

Kudos!

Kevin Richards