Manufacturing and Construction Job Growth Outpaces Services

According to data from the Bureau of Labor Statistics, US goods-producer payrolls rose 0.6% in the six months through August, outpacing the 0.4% growth in services. This is largely due to the recent investment in data centers and equipment, as well as federal tax incentives. Manufacturers added 43,000 jobs over three months, the strongest gain since late 2022. The White House has touted the broad August hiring, with payrolls rising the most in five months and the jobless rate holding at 4.1%. However, economists note that recent manufacturing gains follow three years of steady job losses. The growth in manufacturing employment is attributed to the massive AI push and building of data centers, as well as the tax provisions in the One Big Beautiful Bill Act passed last year. The White House has pointed to the 90,000 increase in employment for people building factories since President Trump took office, which is expected to create future jobs.