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FACT BRIEF

Has manufacturing output in the US fallen with employment in that sector?

By EconoFact
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NO

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.

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Sources
EconoFact Trade and Jobs: Who Loses, Who Adapts and Who Pays?
EconoFact AI, Public College, and the Changing Path to the Middle Class
FRED (Federal Reserve Bank of St. Louis) Real Value Added by Industry: Manufacturing
US Bureau of Labor Statistics Bureau of Labor Statistics Data
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EconoFact
EconoFact is a non-partisan publication designed to bring key facts and incisive analysis to the national debate on economic and social policies. Launched in January 2017, it is written by leading academic economists from across the country who belong to the EconoFact Network. It is published by the Edward R. Murrow Center for a Digital World at The Fletcher School at Tufts University.
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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.