In December, according to the Bureau of Labor Statistics, there were 2,677 mass layoffs for the month - defined as 50 or more initial claims for unemployment against a single establishment over five weeks. That was the largest number of layoffs in five years. Manufacturing companies accounted for 39 percent of the layoffs, and half of the initial claims. In January there were 65,000 fewer manufacturing jobs than in December. According to the National Association of Purchasing Managers, its indicator of the manufacturing economy fell for the sixth straight month to its lowest point since 1991 - the most recent recession.
People start spending less, companies start producing less.
That just adds to the consumer confidence problem. But, she said, that's not true in every area. Duncan said demand for industrial workers has steadily decreased for the last couple years, and only got worse recently. I really have seen it coming on gradually the last three years. Indeed, as they have elsewhere, manufacturers here have felt the economic slowdown stronger than other sectors.