Has manufacturing output in the US fallen with employment in that sector?
As a percent of the labor force, manufacturing employment has been falling since 1950, with the absolute number of jobs in manufacturing on the decline since 1979. However, manufacturing value-added in the U.S. (production minus cost of inputs) was higher at the end of 2019 than ever before. While international trade has played a role, automation of tasks once performed by people is the largest factor in the loss of U.S. manufacturing jobs. In the start of the COVID-19 pandemic (Q2 2020), real-value added in manufacturing declined approximately 12% from the fourth quarter of 2019 but recovered and surpassed its pre-pandemic peak in the first quarter of 2021. Total manufacturing employment declined steeply in the beginning of the COVID-19 pandemic but has not recovered to its pre-pandemic totals.