DEM #678: Manufacturers adding jobs, wage inflation remains high

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DEM #678: Manufacturers adding jobs, wage inflation remains high

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Industrials/Multi-Industry

DEM #678: Manufacturers adding jobs,

wage inflation remains high

Industry Overview

Manufacturers adding jobs, wage inflation remains high 10 July 2026

The US added 57,000 jobs in June. US manufacturers added 3,000 jobs (+0.02% Equity

sequentially). Overtime hours in manufacturing were up 10.8% y/y and have been rising Americas

since February. The average US manufacturing wage rose 4.4% y/y in June to Industrials/Multi-Industry

$30.27/hour. Wage inflation has started to decelerate since ticking up in April and Andrew Obin

remains below the 5.9% y/y peak in February 2024 – but it continues to be stubbornly Research Analyst

high. Wage rates are now 34.5% higher than pre-COVID levels (Feb 2020). BofAS+1 646 855 1817

andrew.obin@bofa.com

Overtime hours up m/m and y/y David Ridley-Lane, CFA

We view overtime hours as a better real-time indicator versus payrolls. Manufacturing ResearchBofAS Analyst

overtime hours/week were 4.1 in June, up 2.5% vs last month. Overtime hours peaked in +1 646 855 2907

david.ridleylane@bofa.com

February ’22, drifted lower staying in the 3.6/3.7 range until January of this year when it

started rising again. The US Manufacturing PMI positive at 53.3 in June. The production Devin Leonard Research Analyst

component rose to 52.2 in June. The PMI is a diffusion index; numbers below 50 indicate BofAS

lower demand. +1devin.leonard@bofa.com646 855 3698

Key takeaways by industry: fluid power leads job growth

Key takeaways: 1) Short-cycle fluid power jobs continue to rise after turning positive in

February leading the six-sub categories in m/m growth. 2) Manufacturing wage inflation

is likely a tailwind for Industrial Automation.