S&P Global data shows June manufacturing employment declines near crisis-era levels amid demand and cost concerns.
US factory job cuts in June reached their highest levels since 2009, excluding the Covid-19 pandemic, as manufacturers reduced headcount due to weakening demand and rising costs. The S&P Global manufacturing index outperformed expectations, but this was driven by inventory rebuilding rather than sustained growth.
Manufacturers have reported job reductions in three of the past four months, with employment declines accelerating in June. Despite these cuts, overall manufacturing employment rose by 23,000 in 2024, reflecting earlier gains earlier in the year.
Concerns persist over the sustainability of demand and escalating raw material costs, which have weighed on hiring decisions. Supply chain delays also widened in June, adding to industry challenges.