NEW YORK — Manufacturing employment in New York State has plummeted by 45 percent since 2000, marking the steepest decline in the nation, according to a new analysis by software services firm ETQ. The report, which draws on data from the Bureau of Economic Analysis and the Bureau of Labor Statistics, reveals that the Empire State lost 330,794 manufacturing jobs between 2000 and 2024, reflecting broader national and global economic shifts.
The 44.6 percent drop in New York’s manufacturing payroll surpasses declines in other states, with Massachusetts, Rhode Island, and Vermont each reporting a 40 percent reduction in manufacturing jobs over the same period. Nationally, the United States has shed more than 4.5 million manufacturing jobs, with significant losses in sectors like computer and electronic manufacturing (-786,000 jobs), printing and related support activities (-452,000), apparel manufacturing (-421,000), and machinery manufacturing (-350,000).
The report attributes much of this decline, particularly between 2000 and 2010, to the “China Shock” following China’s entry into the World Trade Organization in 2001. This event expanded China’s access to global markets, boosting its exports and attracting foreign investment, which disrupted manufacturing sectors in the United States and Europe. “The transformation of global supply chains, driven by a significant surge in Chinese exports, decimated manufacturing employment levels,” the ETQ analysis, shared with NYB, noted.
Despite the sharp decline in jobs, New York’s manufacturing output has grown by 4.7 percent since 2000, part of a national surge in manufacturing GDP exceeding 45 percent. This growth, however, has not translated into job creation. “As a result, many states have expanded their manufacturing economies without a corresponding increase in jobs—reflecting a broader shift toward capital-intensive, technology-driven production,” the report stated. Investments in automation, software, and advanced manufacturing processes have boosted productivity but reduced the need for manual labor. Nationally, manufacturing’s share of GDP has fallen from 13 percent in 2005 to below 10 percent in the first quarter of 2024, according to the Bureau of Economic Analysis.
Recent economic policies aim to reverse these trends. President Donald Trump’s agenda focuses on reshaping international trade to bolster U.S. manufacturing. Treasury Secretary Scott Bessent, speaking on MSNBC’s Morning Joe on August 7, predicted that tariffs would strengthen American manufacturing over the next few years, citing “trillions and trillions” in planned investments. Companies like Apple AAPL +2.15% ▲, which recently increased its U.S. investment commitment by $100 billion to a total of $600 billion over four years, and Nvidia NVDA +3.80% ▲, pledging $500 billion, are part of a wave of corporate investments in domestic manufacturing. Other firms, including Eli Lilly LLY +1.95% ▲, Johnson & Johnson JNJ +1.40% ▲, GE GE +2.60% ▲, and Philips PHG +1.75% ▲, have also committed billions to build or modernize U.S. facilities.
Charlie Ashley, a portfolio manager at Catalyst Funds, emphasized the trade-offs of reshoring manufacturing. “Trump’s goal is to reshore manufacturing to create jobs and use that job creation and domestic production as a tool for economic growth,” Ashley told The Epoch Times. However, he cautioned that higher tariffs or labor costs could create “additional cost pressures” for corporations, and “reshoring won’t happen overnight.”
Recent data paint a mixed picture of U.S. manufacturing. The Institute for Supply Management’s Manufacturing Purchasing Managers’ Index (PMI) reported a fifth consecutive month of contraction in July, while the S&P Global U.S. Manufacturing PMI also slipped into contraction for the first time since December. Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that the downturn partly reflects reduced tariff-related inventory accumulation. Optimism for the year ahead has waned amid fears of declining demand and rising prices.
Regionally, manufacturing activity varies. The Philadelphia Fed Manufacturing Index posted a positive reading in July, driven by rising new orders, shipments, and employment. Conversely, the Richmond Fed Manufacturing Index contracted for the fifth straight month, hitting a 10-month low with declines in new orders and shipments.
New York’s manufacturing sector, while still a significant economic driver, faces challenges in regaining its former employment levels. As automation and global competition reshape the industry, the state’s experience underscores a broader national trend: robust output growth alongside persistent job losses. Whether new investments and trade policies can reverse this decline remains a critical question for the future.
