The manufacturing industry added 5,000 jobs in July, a small improvement from May, according to the U.S. Bureau of Labor Statistics data released Aug. 2.
That’s more than a 145% increase from July 2025, which saw 11,000 job cuts. Meanwhile, adjusted data shows 11,000 jobs were added in June. The BLS initially reported 3,000 jobs were added.
Manufacturing unemployment decreased by more than 33% to 550,000 workers in June, up from 544,000 a year ago.
In general, 23,000 jobs were cut across all U.S. industries, the BLS reported.
Monthly job additions and losses from January 2025 to July 2026
The growth reflects the employment index’s increase in the Institute for Supply Management’s June Purchasing Managers’ Index report, which read at 52.8%. An employment index registering above 50.3% over time is generally consistent with increases in BLS manufacturing employment data, per the ISM.
It’s also a 3.1 percentage point increase month over month, “putting the [employment] index in expansion territory for the first time in 33 months,” Susan Spence, chair of ISM’s Manufacturing Business Survey Committee, said in a statement.
The hiring sentiment has also slightly improved, Spence said during a call Monday, with 1.5 positive comments to one negative.
Despite the upward trend, some trade group leaders are cautiously optimistic, as U.S. manufacturers are dealing with energy price volatility and more tariffs.
“Given the challenges facing the sector right now, adding 5,000 manufacturing jobs in July is a win,” Scott Paul, president of the Alliance for American Manufacturing, said in a statement. “The lesson is clear: when we invest in American industry, it delivers. But progress could quickly stall if policymakers lose sight of the need to support domestic manufacturing, confront China's unfair trade practices, and build for the future.”
The industry is seeing a more “uneven environment,” Jim Pagliero, president of energy, engineering and manufacturing at staffing firm, The Planet Group, said in a statement.
“Employers are taking longer to make decisions, but when they identify the right candidate, especially in highly technical areas, they are still moving forward,” Pagliero said. “The second half of 2026 will likely continue to be a market where specialized skills outperform broader hiring trends.”
Manufacturing sectors that added or lost jobs in July 2026
Openings, layoffs, turnovers and separations
June job openings in the manufacturing industry increased about 23% to 481,000 compared with the same period last year, according to BLS’ job openings and labor turnover survey data released Aug. 4.
Separations increased by nearly 2% year over year to 310,000. According to the BLS, there were 192,000 quits and 94,000 layoffs and discharges. Other separations, which factor in retirement, death, disability and transfers within a company, decreased nearly 12% to 23,000.
Additionally, revised data from the May 2026 JOLT report now show 517,000 openings, 296,000 hires and 301,000 separations.
