Saturday, June 29, 2013

No, manufacturing jobs won’t revive the economy

No, manufacturing jobs won’t revive the economy

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And yet, for all the talk of good jobs in an increasingly high-tech industry, as manufacturing employment has begun to grow, pay in the industry hasn’t gone up. In real terms, the median hourly wage for production workers in manufacturing—which includes front-line supervisors and programmers of computer-controlled machinery as well as hand assemblers and meatpackers—fell from $15.87 in 2010 to $15.51 in 2012, according to the Bureau of Labor Statistics. Those numbers are probably a bit high, since they don’t include temps.

On average, factory workers with little education still make a bit more than they might in retail or fast food, but that’s by no means always true. And, unlike service-sector employers, manufacturing plants are almost worshipped by American politicians. It’s hard to find a plant that expands or opens a new location without getting some sort of tax subsidy. Resonetics got a government-supported financing package when it opened its plant in Nashua, and when Atrium moves to its new location, it will be eligible for a New Hampshire state tax incentive.

Howard Wial, one of the authors of the Brookings Institute paper that advocates high-road manufacturing, said some state and local incentives do require that companies pay a certain wage, but they’re not common, and even when they exist there’s often no enforcement mechanism. In general, he said, the incentives are not particularly connected to creating good jobs.

“They’re just about poaching jobs from one place to another without creating any new value,” he said.

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