Fortunately, the silver lining remains when it comes to employment and hiring with the unofficial end of summer upon us. Last week we received more positive news from the ISM August PMI manufacturing index. The index continues to rise faster for the third straight month. Most promising in these numbers is that demand has improved dramatically from July to August. That includes new orders, new export orders, and customer inventories all being on the upswing.
As for the production side, one of the most significant constraints to growth is inputs. Even though supplier deliveries are reportedly higher, supply chains are still restricting increased growth in the coming months. The other exciting aspect is that the pandemic issues remain focused on loosening the supply chain rather than worrying about drumming up demand in consumer sectors.
Even though there have been labor reductions across the manufacturing sector, according to the ISM report, there was more interest in anticipated new hires. Similar to the past few months, growth areas have stayed consistent in the following sectors: food & beverage, chemicals, fabrications, and transportation.
According to the Financial Times, US employers added 1.4m jobs in August. This does reflect a decreased pace of hiring compared to July. The good news is that the labor market can point to four straight months of growth.
Another useful tidbit for us was the headline that the unemployment number climbed down from 10.2% to 8.4%. Payrolls have also increased to almost 10.6m since May. That's nearly half of the 22M jobs lost in March and April as we were amidst the peak of the COVID shutdowns.
As we continue to support clients and candidates through these tumultuous times, it's heartening to see more Procurement and Supply Chain openings every week. And we're placing them on our job boards as quickly as we get them. There's no doubt that these functions are vital to a company's successful recovery efforts. And we're expecting these talented professionals to lead the way for the foreseeable future.