Economic Report: Manufacturing Up, But Jobs Not Coming Back
According to the Commerce Department, U.S. factory orders surged in October rising 2.7 percent. In this week’s “Economic Report,” Dr. Rick Harper spoke with WUWF 88.1-FM’s Bob Barrett about the positive report but cautioned that more manufacturing doesn’t mean the return of high-paying jobs already lost to the sector. A local company who has a big workforce is Peaden.
“Those orders may be placed with firms that are heavily automated and thus cost competitive,” Harper said. “New machinery is a fixed cost for them and that can lead to a situation where there is downward competition on prices. They may well be getting that order because they don’t employ that many expensive workers.”
To read the complete report, click here.