Over the past three decades, the amount of manufacturing jobs in the United States has mainly decreased from 19.5 million in 1979 to 11.3 million in 2010. Even though currently the industry has gained nearly one million more jobs, it still needs to recover around 4 million. According to Forbes, this is a necessary prerequisite for the U.S. to retain their strong manufacturing base.
Reservations about government appointed committee
Although president Barack Obama has created the Council on Jobs and Competitiveness in order to create more jobs and prosperity for American civilians, there exists doubt as to whether actions taken by government appointed committees actually results in the creation of more jobs. Forbes contributor Mike Collins notes that, in order to tackle unemployment issues, the solution is not to beg large companies to create manufacturing jobs. Instead, the “economic factors that are killing job creation” should be considered. So what are these factors that will help create manufacturing jobs?
Five factors to create more manufacturing jobs
In the Forbes article, five factors that will help create more manufacturing jobs are stressed. These are:
1. Halting currency manipulation: According to an Economic Policy Institute report, in order to reduce trade deficits and create between 2.3 to 5.8 million jobs, global currency manipulation should be stopped. Currency manipulation namely distorts trade flows and increases global trade imbalances.
2. Providing training programs and apprenticeships: Companies are actually planning to create more jobs, but simply adding just any staff member will not do the trick. Ultimately, companies want to hire trained and experienced workers. Thus, providing training programs and apprenticeships that are preferably paid for by the corporations themselves instead of employees, is an important factor that will (a) make manufacturing jobs more attractive) and (b) make sure future employees are well-trained and qualified for the job they are applying for.
3. Negotiating trade agreements: Instead of having trade agreements that benefit only few of the American population, there is a need to negotiate trade agreements that will help create more jobs as well as lower the trade deficit. In other words, trade agreements often are disadvantageous for the creation of jobs.
4. Investing in infrastructure projects: Even though at first it may cost a huge amount of money, the benefits on the long term should be well worth it. Rebuilding current infrastructure would both create extra construction jobs, and make way for better transportation of goods. This will eventually result in lower transportation costs as time equals money.
5. Using tax breaks to support job creation: Tax reduction is currently seen as a “no strings attached” tax break for companies, but if the U.S. really wants to stimulate job creation, spare money could perhaps better be used to create more jobs, purchase better equipment and build or expand company plants.