Factory job cuts in June neared financial crisis and Covid levels, S&P says

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US Factories reported high levels of job cuts in June. Manufacturers have had job cuts for three of the past four months.



Factory job cuts in June neared financial crisis and Covid levels, S&P says

Factory job cuts in June neared financial crisis and Covid levels, S&P says



Key Points


Job cuts at U.S. factories ran near their highest levels since the end of the global financial crisis in 2009 and the Covid-19 pandemic as worries grew over global demand and rising costs, S&P Global reported Tuesday.

Broadly, the S&P manufacturing “flash” reading for its purchase managers index came in at 55.7, up narrowly from May and better than the Dow Jones consensus estimate for 54.8.

Job cuts at U.S. factories ran near their highest levels since the end of the global financial crisis in 2009 and the Covid-19 pandemic as worries grew over global demand and rising costs, S&P Global reported Tuesday.

Though the firm’s manufacturing index ran better than expected for June, it came largely from an inventory rebuild and despite sharp job cuts that were the most since 2009 — excluding the massive labor reductions at the onset of the Covid crisis in 2020.

“While there is better news from the manufacturing sector, we remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears. Supply delays grew more widespread in June,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.

Manufacturers have indicated job cuts for three of the past four months as they seek to reduce headcount over costs and demand concerns.

“Most worrying was the further fall in employment, notably in the manufacturing sector,” Williamson said. “Factory job cuts are running at the highest since 2009 if the pandemic is excluded, reflecting concerns over the sustainability of the recent upturn in demand alongside worries over the escalating cost of raw materials.”

Despite the worries of manufacturing cuts, the jobs picture has been largely solid this year, with strong gains in four of the five months. Manufacturing employment has risen by 23,000 in 2026, according to the Bureau of Labor Statistics.

Broadly, the S&P manufacturing “flash” reading for its purchase managers index came in at 55.7, up narrowly from May and better than the Dow Jones consensus estimate for 54.8. The reading represents the percentage share of companies reporting growth for the month.
 
Despite the worries of manufacturing cuts, the jobs picture has been largely solid this year, with strong gains in four of the five months. Manufacturing employment has risen by 23,000 in 2026, according to the Bureau of Labor Statistics.

So, a nothingburger.

The EV manufactures are laying off right and left due to soft demand once the $7500 tax break went away.
 
Despite the worries of manufacturing cuts, the jobs picture has been largely solid this year, with strong gains in four of the five months. Manufacturing employment has risen by 23,000 in 2026, according to the Bureau of Labor Statistics.

So, a nothingburger.

The EV manufactures are laying off right and left due to soft demand once the $7500 tax break went away.

Not to mention, AI and robotics adoption has accelerated cost-cutting and restructuring in 2025, contributing to layoffs even in profitable firms.
 
Despite the worries of manufacturing cuts, the jobs picture has been largely solid this year, with strong gains in four of the five months. Manufacturing employment has risen by 23,000 in 2026, according to the Bureau of Labor Statistics.

So, a nothingburger.

The EV manufactures are laying off right and left due to soft demand once the $7500 tax break went away.
Tesla is still needing more energy cells for their EVs, and energy cell manufacturers are starting to expand their demand for new cells to replace the old ones that are beginning to reach the end of their life cycles.
 
Not to mention, AI and robotics adoption has accelerated cost-cutting and restructuring in 2025, contributing to layoffs even in profitable firms.
Seems one type of job ends which only opens up another job position.

Robots are doing most of the hard work, but you still need qualified people to watch the robots and make sure they're not malfunctioning.
 
Seems one type of job ends which only opens up another job position.

Robots are doing most of the hard work, but you still need qualified people to watch the robots and make sure they're not malfunctioning.

Well **** me. I guess we shouldn't have deported all those brilliant qualified robotics engineers back to Mexico.

:laughing0301:
 
Well **** me. I guess we shouldn't have deported all those brilliant qualified robotics engineers back to Mexico.

:laughing0301:
Which ones were those?

I thought they were cleaning our toilets and picking our lettuce.

You need smart people that can speak and read English to run those machines.

You can't afford to pay $23/hr to someone who "No hablo inglés".
 
Which ones were those?

I thought they were cleaning our toilets and picking our lettuce.

You need smart people that can speak and read English to run those machines.

You can't afford to pay $23/hr to someone who "No hablo inglés".

What machines? You were referring to leaf-blowers, right?

No English needed. :laughing0301:

1782230659668.webp
 
Not to mention, AI and robotics adoption has accelerated cost-cutting and restructuring in 2025, contributing to layoffs even in profitable firms.
Robotics is going to continue to have an impact on employment--as it has, increasingly for the last few decades. Robots don't need SS, disability, unemployment insurance, FMLA, sick leave, paid holidays, or vacations.
 
Job cuts at U.S. factories ran near their highest levels since the end of the global financial crisis in 2009 and the Covid-19 pandemic as worries grew over global demand and rising costs, S&P Global reported Tuesday.

Were we not promised more manufacturing jobs as a result of Trump's tariffs? Well, where are they? The S&P Manufacturing Index is up, but not due to increased production but rather inventory rebuilds. We are losing manufacturing jobs, not gaining them, so WTF?
 
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