Earlier today, we released “The Benefits of Manufacturing Jobs,” an analysis of wages and benefits of manufacturing workers.  The report finds that total hourly compensation for manufacturing workers is 17 percent higher than for non-manufacturing workers (Figure 1).  This includes premiums in both wages and employer-provided benefits, such as health insurance and retirement plans. 

The premium in wages and salaries alone is 8 percent, but it is a whopping 59 percent when we look at employer-provided benefits.  76 percent of manufacturing workers have the option of medical care and retirement benefits, compared to only 55 percent of workers in private service-providing industries (Figure 2).  In addition to covering more a higher percentage of workers, manufacturing employers pay a higher share of health care premiums than their service providing counterparts.

 In addition to manufacturing jobs being highly compensated, the nature of manufacturing jobs has been changing.  In 2011, 53 percent of all manufacturing workers had at least some college education, up from 43 percent in 1994 (Figure 3).  Higher educational attainment for manufacturing workers carries higher premiums and the size of the premium, including or excluding benefits, increases consistently with educational attainment.

Further, manufacturing jobs are STEM (science, technology, engineering, and math) intensive.    The innovative manufacturing sector relies more heavily on STEM education than non-manufacturing.  For instance, nearly 1 out 3 (32 percent) college-educated manufacturing workers has a STEM job, compared to 10 percent in non-manufacturing (Figure 4). 

These skills are vital to keep our manufacturing sector innovative and competitive.  Indeed, manufacturing employment has expanded by 489,000 jobs or 4 percent since January 2010. These findings underscore how important the resurgence in U.S. manufacturing is to our middle class.  Further, the manufacturing sector has been competing on the global stage, with manufactured goods exports increasing 38 percent from 2009 to 2011. 

The U.S. manufacturing sector is a cornerstone of innovation in our economy:  manufacturing firms fund most domestic corporate research and development (R&D), and the resulting innovations and productivity improve our standard of living. Manufacturing also drives U.S. exports, and is crucial for a strong national defense.

~Mark Doms, Chief Economist, U.S. Department of Commerce

May 9, 2012

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