Interesting analysis from Nate Silver’s 535.com titled Manufacturing Jobs Are Never Coming Back
There’s no mystery why candidates love to focus on manufacturing and trade.
“It’s understandable that voters are angry about trade. The U.S. has lost more than 4.5 million manufacturing jobs since NAFTA took effect in 1994. And, there’s mounting evidence that U.S. trade policy, particularly with China, has caused lasting harm to many American workers.”
“Manufacturing in particular embodies something that seems to be disappearing in today’s economy: jobs with decent pay and benefits available to workers without a college degree. The average factory worker earns more than $25 an hour before overtime; the typical retail worker makes less than $18 an hour.”
“In 1994 there were 3.5 million more Americans working in manufacturing than in retail. Today, those numbers have almost exactly reversed, and the gap is widening. More than 80 percent of all private jobs are now in the service sector.”
How can that be? Aren’t we hearing a lot about “re-shoring” and foreign capital investing in U.S. based manufacturing plants?