The (Modest) Rebound in Manufacturing Jobs
The United States lost 5.7 million manufacturing jobs between 2000 and 2010, reducing the nation?s manufacturing employment base by nearly a third. These job losses and their causes have been well documented in the popular press and in academic circles. Less well recognized is the modest yet significant rebound in manufacturing jobs that has been underway for several years. Indeed, employment in the manufacturing industry began to stabilize in 2010, and the nation has added nearly 1 million jobs since then. Although modest in magnitude, this uptick in manufacturing jobs represents the longest ...
Where Are Manufacturing Jobs Coming Back?
As we outlined in our previous post, the United States lost close to sixmillion manufacturing jobs between 2000 and 2010 but since then has gained back almost one million. In this post, we take a closer look at the geographic dimension of this modest rebound in manufacturing jobs. While job losses during the 2000s were fairly widespread across the country, manufacturing employment gains since then have been concentrated in particular parts of the country. Indeed, these gains were especially large in ?auto alley??a narrow motor vehicle production corridor stretching from Michigan south to ...
The Cost of College Continues to Climb
In the first of two posts, our bloggers examine the rising cost of college and whether getting a college degree is still ?worth it.? They update their 2014 study by estimating the cost of college in terms of both out-of-pocket expenses and opportunity costs. They find that the cost of college has increased sharply over the past several years as opportunity costs have increased, substantially owing to a rise in the wages of those without a college degree.
Despite Rising Costs, College Is Still a Good Investment
The steep increase in the cost of college has once again raised questions about whether college is ?worth it.? Our bloggers weigh the economic benefits of a bachelor?s degree against its cost to estimate the return on attending college. They find that although the rising cost of college appears to have eroded the value of a bachelor?s degree somewhat, college remains a good investment for most people who receive a degree.
Some Places are Much More Unequal than Others
Economic inequality in the United States is much more pronounced in some parts of the country than others. In this post, we examine the geography of wage inequality, drawing on our recent Economic Policy Review article. We find that the most unequal places tend to be large urban areas with strong economies where wage growth has been particularly strong for those at the top of the wage distribution. The least unequal places, on the other hand, tend to have relatively sluggish economies that deliver slower wage growth for high, middle, and lower wage earners alike. Many of the least unequal ...
Women Have Been Hit Hard by the Loss of Routine Jobs, Too
Technological change and globalization have caused a massive transformation in the U.S. economy. While creating new opportunities for many workers, these forces have eliminated millions of good-paying jobs, particularly routine jobs in the manufacturing sector. Indeed, a great deal of attention has focused on the consequences of the loss of blue-collar production jobs for prime‑age men. What is often overlooked, however, is that women have also been hit hard by the loss of routine jobs, particularly administrative support jobs—a type of routine work that has historically been largely ...
Businesses in the Tri-State Region Struggling to Weather the Coronavirus Outbreak
As a result of the coronavirus outbreak, New York State, New Jersey, and Connecticut have closed nonessential businesses and schools and asked residents to stay home in an effort to slow the spread of the virus. These actions are unprecedented, and the economic impacts are likely to be temporary but severe, and difficult to track and measure. With conditions changing so rapidly, timely data on the economic impacts of the outbreak and resultant policies on businesses and people are both scarce and important. In this post, we provide some very recent information on the economic effects of the ...
The Coronavirus Shock Looks More like a Natural Disaster than a Cyclical Downturn
It’s tempting to compare the economic fallout from the coronavirus pandemic to prior business cycle downturns, particularly the Great Recession. However, such comparisons may not be particularly apt—as evidenced by the unprecedented surge in initial jobless claims over the past three weeks. Recessions typically develop gradually over time, reflecting underlying economic and financial conditions, whereas the current economic situation developed suddenly as a consequence of a fast-moving global pandemic. A more appropriate comparison would be to a regional economy suffering the effects of a ...
New York Fed Surveys: Business Activity in the Region Sees Historic Plunge in April
Indicators of regional business activity plunged to historic lows in early April, as efforts to slow the spread of the coronavirus kept many people at home and shut down large parts of the regional economy, according to the Federal Reserve Bank of New York’s two business surveys. The headline index for both surveys plummeted to nearly -80, well below any historical precedent including the depths of the Great Recession. About 60 percent of service firms and more than half of manufacturers reported at least a partial shutdown of their operations thus far. Layoffs were widespread, with half of ...
Finally, Some Signs of Improvement in the Regional Economy
The Federal Reserve Bank of New York’s June business surveys show some signs of improvement in the regional economy. Following two months of unprecedented decline due to the coronavirus pandemic, indicators of business activity point to a slower pace of contraction in the service sector and signs of a rebound in the manufacturing sector. Even more encouraging, as the regional economy has begun to reopen, many businesses have started to recall workers who were laid off or put on furlough since the start of the pandemic. Some have even hired new workers. Moreover, businesses expect to recall ...