The data was collected in mid-March. The actual situation right now is almost certainly much worse.
The Bureau of Labor Statistics on Friday released its monthly jobs report, revealing that manufacturing lost 18,000 jobs in March, while the overall economy shed 701,000 jobs.
Here’s the problem.
These numbers only hint at the losses that have actually taken place. The data was gathered in mid-March, just before the coronavirus crisis started to really take hold across the United States.
Since then, there have been some very unsubtle changes in the U.S. economy as a result of the rapid spread of the virus. Shopping malls, restaurants, and bars have shut their doors; sporting events, music festivals and other activities have been canceled.
The result? About 10 million people have filed for unemployment benefits in the last two weeks.
On the manufacturing front, the virus has resulted in countless factory closings, although some manufacturers have shifted production to help produce medical supplies for the health care sector to combat shortages. But as noble as those efforts are, they are not likely to be able to make up for the overall devastation happening in the economy right now.
As Alliance for American Manufacturing President Scott Paul said in a statement:
“There will be no easy way out of this crisis for millions of Americans, and this jobs report reflected just the very start of the collapse. The relief package passed by Congress may allow some businesses and families to tread water for awhile, but much more needs to be done.”
Lawmakers are currently considering the next phase of a coronavirus rescue package, and there’s talk that it will include funding to rebuild our nation’s crumbling infrastructure. As we noted earlier this week, an infrastructure investment package is a very good idea, especially if it includes Buy America preferences.
That’s because investing to rebuild our roads, bridges, public transit, pipelines, ports, airports, water systems, and more will create millions of American jobs and provide a huge boost to the economy at a critical time. Plus, doing so will literally lay the groundwork for continued economic growth.
But that’s not all that Congress should do, Paul noted.
“First, Congress must pass a robust infrastructure package to create jobs and rebuild America,” he said. “Second, the administration shouldn’t do importers a special favor by delaying tariff collection. Third, we should insist that any big corporation receiving federal aid bring more jobs back to America.”