Identifies units that fail tests or tolerance levels and supervise repairs as necessary. May require a bachelor's degree. Typically reports to a manag Sets up and operates a packaging machine in accordance with established procedures and guidelines. Verifies goods packaged against package invoices. Reads and interprets blueprints and diagrams to select, position and secure machinery. Adjusts machine settings to complete tasks accurately, according to speci Toggle navigation Demo.
Experience CompAnalyst: Demo. Narrow the results by filtering on category, industry and income. Display Compact Detailed. Choose a Industry. The McKinsey report also paints a picture of a workforce under siege, with offshoring, cost-cutting, and plant closures squeezing wages and benefits, particularly for many of the temporary or staffing intermediary workers in manufacturing:.
In recent decades, the sector has also developed a two-tiered workforce, with jobs in the bottom tier steadily deteriorating in quality. Since , real wages for production workers have risen by only 0.
In some distressed industries, real wages have actually declined. One government report estimates that there are about 1. Half of these temporary workers, and one-third of all manufacturing production workers, rely on food stamps or other federal assistance programs to make ends meet.
Ramaswamy et al. These reports raise the question of whether there is a pay premium for manufacturing work and whether this pay premium has eroded, especially recently and for particular types of workers.
We review these studies and conduct new analysis of manufacturing wage and benefit premiums and conclude that although the increase in outsourcing manufacturing work to staffing agencies has helped erode pay and job quality, there is still a substantial manufacturing pay premium.
One benefit of expanding manufacturing employment is that the workers are paid a premium. However, there is less of a pay advantage in manufacturing than there used to be. This suggests that policies to expand manufacturing employment should be accompanied by policies that maintain or strengthen compensation standards.
This paper begins with a review of several recent studies on manufacturing pay and the quality of manufacturing jobs. The second section presents new estimates of the scale and trend of the manufacturing wage premium and augments this with an analysis of fringe benefits in manufacturing relative to other sectors to produce estimates of the manufacturing compensation premium. The third section examines the trend in temporary and staffing agency employment and assesses its impact on overall manufacturing job quality and the wage and benefit premium.
Commerce Department provided detailed empirical analyses of wages and benefits in their report, The Benefits of Manufacturing Jobs , and concluded,. The compensation premium [for manufacturing jobs] has risen over the past decade across all levels of educational attainment.
Langdon and Lehrman , 1. This compensation premium is one of the reasons why manufacturing jobs are described as high quality jobs. But there are many reasons besides job quality why a healthy manufacturing sector is crucial for economic growth. The Commerce Department report provides two examples:. Manufacturing also drives U. Manufacturing makes up 9 percent of employment and 12 percent of U. Although it has been gradually shrinking as a share of GDP and losing its role as a major engine of employment, manufacturing still matters.
It is the primary sector in counties from coast to coast and a magnet for foreign direct investment. Above all, manufacturing reflects U. The oft-made claim that manufacturing jobs pay a premium has recently been challenged. Before examining that challenge it is worth reviewing The Benefits of Manufacturing Jobs and a later Commerce Department report that both present detailed empirical work on this issue.
The Commerce Department issued two studies on the manufacturing pay premium in recent years. The Benefits of Manufacturing Jobs Langdon and Lehrman looks at changes in the premium over time and finds that even after controlling for demographic, geographic, and job characteristics, manufacturing jobs maintain significant wage and benefit premiums. It also finds that the compensation premium has risen over the past decade across all levels of educational attainment.
The results for are presented in the first data column of Table 1. Notes: The manufacturing premium wage and compensation is for workers age 25 and older and shows how much more a manufacturing worker makes per hour than a comparable nonmanufacturing worker in the private sector.
Workers with a high school diploma or less saw the premium decline from about 6 percent in to 3 percent by Since then, their premium has fluctuated between 3 and 4 percent.
Langdon and Lehrman , 6. It is notable that the authors find a slight decline in the overall manufacturing wage premium from to , and a lower and more rapidly declining premium for those with a high school diploma or less a group constituting about 55 percent of all manufacturing workers in but just 45 percent by The Commerce Department study, however, highlights that manufacturing workers receive far better benefits—health care and retirement—than do private-sector workers in the private service-providing sector.
Taking benefits into account sharply raises the estimated manufacturing pay premium, as shown in the second column of Table 1. As shown in Table 1, they find that the total compensation premium was twice as high 15 percent in as their estimated wage premium 7 percent. The compensation premium was 12 percent in The total compensation premium for manufacturing workers with a high school diploma or less was 11 percent, far higher than the wage premium for this group of just 3 percent.
The longer work hours and greater number of work weeks per year means that both the estimated hourly manufacturing pay premium discussed in the first Commerce Department study Langdon and Lehrman and what we present below understate the manufacturing pay premium because the estimates do not account for the greater working time of manufacturing workers over the course of a year. This report is worth reviewing as its claims were picked up by other researchers casting doubt on the existence of the manufacturing pay premium.
We find that the CRS report offers very little empirical evidence to support its strong conclusion that the manufacturing pay premium has disappeared. The CRS report makes several claims about wage levels. Following are a few of the claims in Levinson Manufacturing wages are below those in many other industries and continue to decline in relative terms. Contrary to the popular perception, manufacturing workers, on average, earn significantly less per hour than workers in industries that do not employ large numbers of teenagers, that have average workweeks of similar length, and that have similar levels of worker education.
Regarding the first two quotes presented here, simply noting that some industries such as utilities and construction pay more than manufacturing does not disprove that manufacturing is a relatively large sector that does provide relatively higher wages and benefits than similar workers earn elsewhere in the private sector. The third quote also represents an unsubstantiated claim. The claim is that manufacturing wages and benefits exceed that of other industries primarily because it has fewer young workers and fewer workers working part time who are less likely to receive benefits and are paid less.
The report offers no specific quantitative assessment of the impact of these age and part-time characteristics on relative wages and benefits: the only data offered are that some low-wage industries are more likely to hire teenagers and part-time workers Levinson , 7. This is hardly persuasive.
It is true that manufacturing wages have not fared as well as wages in some other industries. For example, this group can include office and clerical workers, physicians, teachers, lawyers, and salespersons. Nicholson and Powers , In other words, the data that Levinson relies on to compare manufacturing wages with those of industries in other sectors are making apples and oranges comparisons.
The weakest claim in the CRS report is that benefits paid to manufacturing workers have deteriorated:. Traditionally, manufacturing employers have tended to offer more generous employee benefits than those in other industries.
This may no longer be the case. Data from the Bureau of Labor Statistics compensation survey, which takes the cost of insurance, pensions, and other employee benefits into account, show that manufacturing workers experienced a decline in benefits relative to workers in other industries between and Levinson , 9.
Again, there is no quantitative evidence offered to support any claim that there is no longer a manufacturing advantage in employee benefits. In fact, there is no evidence offered at all! That is, no analyses of any data are actually presented and the analysis is left for the readers to do for themselves.
The data presented in the Commerce Department report Langdon and Lehrman on the relative greater availability of retirement and health benefits in manufacturing and the greater dollar value of benefits in manufacturing is a powerful rebuttal of this CRS claim. The CRS report does take note of the Commerce Department Langdon and Lehrman study but only mentions the basic descriptive comparisons of manufacturing wages and compensation relative to other sectors. Such comparisons, however, are not as straightforward as they may appear.
At least some of the purported manufacturing wage premium exists because manufacturers employ far fewer young workers than industries with lower pay. Also, large numbers of workers in those two relatively low-paid industries are employed part time; the average work week is around 25 hours in leisure and hospitality and 30 hours in retailing, versus 42 hours in manufacturing.
Full-time workers in any industry are more likely to receive benefits than part-time workers. Levinson , 7. As noted above, a claim that manufacturing has fewer young workers and fewer part-time workers does not prove that manufacturing provides no pay premium.
What is missing from the CRS analysis is any quantification that shows that age and part-time work patterns explain the manufacturing premium. There is also an unstated and erroneous assumption in the CRS analysis that the pay penalty suffered by part-time workers—receiving less in wages and benefits per hour worked—reflects less productivity for those workers.
In fact, the part-time pay penalty is a form of discrimination Golden forthcoming and reflects the weaker bargaining position of part-time workers. This section begins by examining the level and trend of the manufacturing hourly wage premium from the s through the s up through This analysis, which uses data from the Current Population Survey CPS compiled by the BLS, is comparable to that presented in the Commerce Department study Langdon and Lehrman discussed above though it extends further back in time and updates the analysis through There are some differences with the Commerce Department specification and sample.
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