U.S. factory employment cuts near crisis-era highs as cost pressures hit manufacturing
U.S. manufacturers are signaling some of the sharpest job reductions in years even as headline factory activity improves in June. The stronger reading appears to be driven largely by inventory rebuilding, while demand concerns and rising costs continue to weigh on hiring plans.
Highlights
- S&P Global's flash manufacturing PMI for June rose to 55.7, exceeding May's reading and the Dow Jones consensus estimate of 54.8.
- Factory job cuts approach post-2009 and pandemic highs as manufacturers reduce headcount amid cost and demand pressures despite broader labor market resilience.
- Survey indicates current output aligns with slow US economic growth, projecting around 1% annualized pace for Q2 after 1.6% in Q1 and 0.5% in Q4 2025.
June survey shows uneven factory momentum
As reported by CNBC citing S&P Global, its flash manufacturing purchasing managers index for June stands at 55.7, slightly above May and ahead of the Dow Jones consensus estimate of 54.8.The survey points to a split picture across the sector. While output and the headline index improve, companies continue to report workforce reductions, with manufacturers indicating job cuts in three of the past four months as they try to lower headcount amid cost and demand pressures.
Cost pressures cloud wider economic outlook
Factory job cuts are running close to their highest levels since the end of the 2009 global financial crisis and the Covid-19 pandemic, reflecting growing concern over global demand and higher operating costs.Broader labor market conditions remain more resilient than the factory survey suggests. Manufacturing employment has risen by 23,000 in 2026, according to the Bureau of Labor Statistics, and payroll gains have been strong in four of the five months this year.
Businesses are also facing pressure from a renewed rise in inflation, with energy prices climbing and Federal Reserve officials considering higher interest rates. S&P Global's survey indicates current output levels are consistent with an economy that is struggling to grow much faster than a 1% annualized pace in the second quarter, after growth of 1.6% in the first quarter and 0.5% in the fourth quarter of 2025.
In our earlier article on S&P Global’s June flash U.S. manufacturing PMI, we noted that factory activity accelerated as companies brought forward orders to protect against potential supply disruptions and higher input costs. At the same time, the survey showed a marked deterioration in manufacturing employment and still-elevated price pressures, reinforcing concerns about sticky inflation and the risk of higher interest rates later in the year.
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
