The decline of high-tech manufacturing in the United States
6 days ago
- #employment
- #manufacturing
- #technology
- High-tech manufacturing employment in the U.S. has declined significantly since 1990, with a loss of nearly 1 million jobs.
- Key high-tech manufacturing sub-sectors include computer and electronic products, pharmaceuticals & medicine, and aerospace products and parts.
- Employment in computers and electronics dropped by 850K, aerospace by 300K, while pharmaceuticals and medical devices saw a net increase of 189K.
- High-tech manufacturing's share of national employment fell from 2.8% to 1.3%, a 50% decline.
- The sector's economic contribution also decreased from 4.8% in 1987 to 2.6% in 2023.
- The CHIPS and Science Act of 2022 aims to boost semiconductor manufacturing but may only create 36,300 to 56,000 jobs, offsetting just 4-6% of past declines.
- Traditional high-tech hubs like Silicon Valley, Seattle, and Boston's Route 128 corridor have seen reduced employment intensity.
- Workforce issues, such as those at TSMC’s Phoenix plant, and policy uncertainties under President Trump add challenges to recovery.