Factory job cuts in June hit their highest levels since the 2009 financial crisis, excluding the pandemic, according to data released by S&P Global, signaling deepening concerns among manufacturers over demand sustainability and rising costs.
S&P Global’s flash U.S. Manufacturing Purchasing Managers’ Index rose to 55.7 in June, its highest reading in 49 months, yet the employment subindex reflected sharp reductions in factory headcount. “Factory job cuts are running at the highest since 2009 if the pandemic is excluded, reflecting concerns over the sustainability of the recent upturn in demand alongside worries over the escalating cost of raw materials,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in the report.
The job losses mark a troubling trend for manufacturers, who have now cut headcount in three of the past four months. Manufacturers face mounting pressure from surging raw material costs and uncertainty about whether recent demand gains will hold. The manufacturing sector contracted employment in 23 of the last 25 months, the longest losing streak since the 2008 financial crisis, according to survey data.
The disconnect between the strong overall PMI reading and weak employment signals underscores the nature of the current slowdown. The manufacturing index’s strength came largely from inventory rebuilding amid supply chain fears, rather than from underlying demand for goods. “While there is better news from the manufacturing sector, we remain concerned as factory growth continues to be temporarily buoyed by inventory building amid supply fears,” Williamson noted.
Despite the sharp June decline in factory employment, the broader jobs picture has remained relatively resilient this year. Manufacturing employment rose by 23,000 in 2026 through May, according to the Bureau of Labor Statistics. However, the year-to-date gains mask the recent deterioration in hiring conditions at factories.
The scale of manufacturing job losses during major economic downturns provides context for the current concern. During the 2008-2009 financial crisis, U.S. manufacturers shed roughly 2 million jobs. The pandemic wiped out 1.4 million manufacturing positions. While June’s job cuts fall short of those catastrophic levels, the trend signals mounting stress in a sector that has struggled to recover from decades of employment losses tied to automation, global competition, and shifting supply chains.
Sources
- CNBC — Factory job cuts in June, manufacturing PMI reading of 55.7, employment subindex weakness, Chris Williamson commentary on raw material costs
- S&P Global — Flash U.S. Manufacturing PMI data, employment index subcomponent, 49-month high reading
- Reuters — Job cuts attributed to concerns over sustainability of demand, rising raw material prices
- MLQ.ai — 2008-2009 financial crisis manufacturing job losses (roughly 2 million), pandemic job losses (1.4 million)
- Bureau of Labor Statistics — Manufacturing employment rose 23,000 in 2026
- Facebook/CNBC — Manufacturing employment contracted in 23 of last 25 months
