Auto employment highest since 2008

  • Detroit Free Press
  • Friday, February 6, 2015 4:25pm
  • Business

DETROIT — The U.S. auto industry now employs more workers than it has at any time since March 2008, at the beginning of the Great Recession when the industry and economy in general started a sharp descent.

In January, the U.S. auto industry added 6,700 jobs, raising total employment for the industry to 913,200, according to data released by the U.S. Department of Labor on Friday.

The data were part of unemployment numbers released Friday that showed it edging higher to 5.7 percent from 5.6 percent, even though the U.S. economy added a better-than-expected 257,000 jobs in January, according to the latest data from the Bureau of Labor Statistics. The gain was higher than the 230,000 gain that economists expected for the month.

The slight uptick in the unemployment rate was caused by an increase in the number of people looking for jobs, which some view as a possible indication of an improving economy as some long-term unemployed restart job searches because they see more opportunity in the employment market.

“The January employment report was strong across the board,” said Michelle Girard, an economy at RBS Securities, in a note to clients. “While benchmark and seasonal factor revisions affect many of the month-to-month changes, even looking through that noise, the data were clearly very healthy.”

Throughout the recession, the nation’s automotive industry has been leading the nation’s economic recovery.

In January, manufacturers added 22,000 jobs compared to the prior month. Over the past 12 months, manufacturing has added 228,000 jobs.

General Motors, Ford and Chrysler now employ about 141,000 U.S. hourly workers, up from about 111,000 in 2011.

Over the past week, the Detroit Three each announced they would pay profit sharing to those workers according to a contract signed in 2011. GM said it will pay up to $9,000 while Ford will pay an average of $4,800 and Chrysler will pay $2,750.

However, wage growth in the manufacturing industry has not followed the job growth.

Manufacturing wages have declined 4.4 percent from $16.38 per hour in 2003 to $15.66 as of 2013, according to a recent report from the National Employment Law Project.

Wages in the automotive sector have dropped 21 percent from $31.45 in 2003 to $24.83 in 2013 for automotive manufacturers.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Simreet Dhaliwal speaks after winning during the 2024 Snohomish County Emerging Leaders Awards Presentation on Wednesday, April 17, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Simreet Dhaliwal wins The Herald’s 2024 Emerging Leaders Award

Dhaliwal, an economic development and tourism specialist, was one of 12 finalists for the award celebrating young leaders in Snohomish County.

Lynnwood
New Jersey company acquires Lynnwood Land Rover dealership

Land Rover Seattle, now Land Rover Lynnwood, has been purchased by Holman, a 100-year-old company.

Szabella Psaztor is an Emerging Leader. (Olivia Vanni / The Herald)
Szabella Pasztor: Change begins at a grassroots level

As development director at Farmer Frog, Pasztor supports social justice, equity and community empowerment.

Owner and founder of Moe's Coffee in Arlington Kaitlyn Davis poses for a photo at the Everett Herald on March 22, 2024 in Everett, Washington. (Annie Barker / The Herald)
Kaitlyn Davis: Bringing economic vitality to Arlington

More than just coffee, Davis has created community gathering spaces where all can feel welcome.

Simreet Dhaliwal is an Emerging Leader. (Olivia Vanni / The Herald)
Simreet Dhaliwal: A deep-seated commitment to justice

The Snohomish County tourism and economic specialist is determined to steer change and make a meaningful impact.

Emerging Leader John Michael Graves. (Ryan Berry / The Herald)
John Michael Graves: Champion for diversity and inclusion

Graves leads training sessions on Israel, Jewish history and the Holocaust and identifying antisemitic hate crimes.

Gracelynn Shibayama, the events coordinator at the Edmonds Center for the Arts, is an Emerging Leader. (Olivia Vanni / The Herald)
Gracelynn Shibayama: Connecting people through the arts and culture

The Edmonds Center for the Arts coordinator strives to create a more connected and empathetic community.

Eric Jimenez, a supervisor at Cocoon House, is an Emerging Leader. (Olivia Vanni / The Herald)
Eric Jimenez: Team player and advocate for youth

As an advocate for the Latino community, sharing and preserving its traditions is central to Jimenez’ identity.

Nathanael Engen, founder of Black Forest Mushrooms, an Everett gourmet mushroom growing operation is an Emerging Leader. (Olivia Vanni / The Herald)
Nathanael Engen: Growing and sharing gourmet mushrooms

More than just providing nutritious food, the owner of Black Forest Mushrooms aims to uplift and educate the community.

Molbak's Garden + Home in Woodinville, Washington closed on Jan. 28 2024. (Photo courtesy of Molbak's)
Molbak’s, former Woodinville garden store, hopes for a comeback

Molbak’s wants to create a “hub” for retailers and community groups at its former Woodinville store. But first it must raise $2.5 million.

DJ Lockwood, a Unit Director at the Arlington Boys & Girls Club, is an Emerging Leader. (Olivia Vanni / The Herald)
DJ Lockwood: Helping the community care for its kids

As director of the Arlington Boys & Girls Club, Lockwood has extended the club’s programs to more locations and more kids.

Alex Tadio, the admissions director at WSU Everett, is an Emerging Leader. (Olivia Vanni / The Herald)
Alex Tadio: A passion for education and equality

As admissions director at WSU Everett, he hopes to give more local students the chance to attend college.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.