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Manufacturing and unemployment in California

The manufacturing industry sector as defined by the Bureau of Labor Statistics includes businesses involved in the mechanical, physical, or chemical transformation of materials, substances or components into new products such as plants, factories or mills that use power-driven machines and materials-handling equipment.

Manufacturing Industry
Photo by Matt Cardy/Getty Images

According to the U. S. Bureau of Labor Statistic’s June 20 report, manufacturing in California showed a -7.7 percent decline accounting for a 7,700 job loss over the past 12 months. The Los Angeles-Long Beach- Glendale statistics on manufacturing show a -3.9 decline followed by a -3.1 percent decline for Los Angeles-Long Beach-Santa Ana Metropolitan areas. The Beverage & Tobacco was the only sub-sector within Manufacturing showing an increase of 1400 jobs over the past month.

In an effort to uplift the manufacturing sector, the U. S. Economic Development Administration has awarded Southern California (one of 12 communities nation-wide) billions of dollars in federal money as part of the “Investing in Manufacturing Communities Partnership (IMCP) initiative.” According to U. S. Secretary of Commerce Penny Pritzker, “IMCP is a critical part of our ‘Open for Business Agenda’ to strengthen the American manufacturing sector and attract more investment to the United States. Innovative programs like IMCP encourage American communities to work together to craft strong, clear, strategic plans to attract manufacturing investment and jobs to transform themselves into globally competitive commercial hubs.”

In other news, individuals age 16 and over unemployed for 12 months or more show an increase of 2.9 percent change from May 2013 according to the May 2014 issue of the California Labor Market Review. California’s nonfarm payrolls gained 18,300 jobs in May followed by a revised 61,200-job gain in April with construction showing the highest growth of 5.9 percent over the past year. Professional and business services came in second with a 4.2 percent gain, educational and health services ranked third at 3.9 percent. Los Angeles-Long Beach-Glendale metropolitan area showed the largest numerical year over 2.2 percent job gain of 89,300 jobs from May 2013.