Region’s Manufacturing Jobs Sink in November

Posted December 2, 2024

The November Creighton University Mid-America Business Conditions Index shows the unemployment gauge has tumbled compared to nearly the same time last year.

The Business Conditions Index, ranging between 0 and 100 with 50.0 representing growth neutral, slumped to 49.6 from 51.1 in October. That’s the 11th time this year the index has drifted slightly above and below growth neutral.

“The overall index, much like the U.S. reading, has vacillated around growth neutral since December 2023,” Ernie Goss, Ph.D. at Creighton University said. “Even so, manufacturers in the nation and region continue to shed jobs.”

The region’s employment has also experienced a similar slump.

The November employment index rose to 44.4 from 44.2 in October. Despite this, approximately 11.1% of surveyed companies believe labor shortages are the top threat to business operations. The seasonally adjusted regional manufacturing employment fell by 2,000 jobs (-0.2%) in 2024, while the U.S. manufacturing employment sank by 90,000 (-0.7%) in the same time, according to the U.S. Bureau of Labor Statistics.  

In October, approximately 45,000 longshoremen and dock workers stopped working to conduct a strike. The International Longshoremen’s Association called for better pay and to create job security measures against automation. However, the labor union suspended its three-day strike until Jan. 15 to allow for more time to establish a new contract. With the threat of a strike in sight, firms in the region are concerned with how it will affect the supply chain in the near future.

“The potential for an East/Gulf Coast longshoremen’s strike on Jan. 15, 2025, was a significant factor pushing inventory levels higher,” Goss said.

State Reports

Kansas: The Kansas Business Conditions Index for November dropped to 49.8 from 51.9 in October. Components of the leading economic indicators from the monthly survey of supply managers for November were: new orders at 47.0; production or sales at 50.3; delivery lead time at 58.7; employment at 44.0; and inventories at 48.8. According to the latest U.S. International Trade Administration data, Kansas’ manufacturing sector expanded 2024 year-to-date exports by $316.9 million from the same period in 2023 for a 3.4% gain.

Missouri: The state’s November Business Conditions Index dropped to 47.4 from 50.7 in October. Components of the overall index from the survey of supply managers for November were: new orders at 46.7; production or sales at 49.3; delivery lead time at 57.1; inventories at 44.6; and employment at 39.2. According to the latest U.S. International Trade Administration data, Missouri’s manufacturing sector expanded 2024 year-to-date exports by $1.6 billion from the same period in 2023 for a 13.3% gain.