Factory Blues

According to a study by the Federal Reserve Bank of Minneapolis, from 1997 to 2007 the number of US factories employing more than 1000 workers dropped from 1503 to 1014 (in 1977 there were 2061 of them). But they did not all close -- 48% still employ more than 500 workers, 7% still employed between 250 to 500 workers, and the rest *closed*.

The double asterisks around 'closed' need explanation. Only in a government study would 'closed' not be considered shut down. To quote the study: 'Closure includes shrinking to a plant size below 250 employees.'

Nevertheless, automation and technological changes are shrinking the factory workforce. In 1997, said the study, factories employed 13.7% of all private non-government employees. In 2007, that percentage dropped to 9.7%.

Megafactories employing more than 5000 workers also declined, from 97 in 1997 to 49 in 2007. If you want industrial production on a vast scale, look to China. News reports credited the Foxconn complex in Shenzhen -- where iPhones are assembled -- with 300,000 workers. Of course, more than a few are committing suicide. The company recently issued a new regulation banning suicide from the workplace. That must be the new Chinese labor movement: protest by suicide.

Most of the work once done by US factory labor moved to China. In sections of the Southeast US, an amazing 97% of infants’ cut and sew apparel manufacturing headed to China, while 91% of women’s and girls’ cut and sew suit, coat, and skirt manufacturing went there too. Other specific apparel categories lost 70% to 78% of the US jobs and non apparel categories did almost as bad: computers lost 68%, power hand tools down 56%, electric housewares down 54%, and metal household furniture lost 48% of its jobs to China. No need to wonder why unemployment is up to 9.2% and underemployment doubles that figure.