Trends in Manufacturing in the United States

Abstract

Manufacturing remains an important component of the US economy, yet its role has shifted: productivity growth in the sector has slowed, and its employment share has declined, the latter of which is a trend driven by reduced entry of workers into the sector. At the same time, the manufacturing workforce has become more educated, while the sector's historical wage premium has diminished. These trends reflect a broader shift in the role that manufacturing plays in the US economy and in the labor market opportunities it provides.