Updated · Information Technology and Innovation Foundation · Aug 18
US Manufacturing Employment Outpaces 5.1% Output Growth, Eroding Productivity
Updated
Updated · Information Technology and Innovation Foundation · Aug 18
US Manufacturing Employment Outpaces 5.1% Output Growth, Eroding Productivity
1 articles · Updated · Information Technology and Innovation Foundation · Aug 18
Summary
BLS data show U.S. manufacturing employment rose 9.4% from 2010 to 2025 while real sectoral output increased just 5.1%, signaling a decline in labor productivity.
That contrasts with the broader nonfarm business sector, where labor productivity climbed nearly 25% over the same period, indicating manufacturing is lagging the wider economy.
The report argues weaker factory productivity raises production costs and undermines U.S. competitiveness in globally traded and strategic industries.
China already leads production in 7 of 10 advanced industries tracked by ITIF's Hamilton Index, sharpening pressure on U.S. manufacturers to close the productivity gap.
It urges Congress to speed adoption of robots, AI and advanced automation through tax incentives, modernization support and workforce training.