March Jobs: Government Overreach Too Overbearing for Manufacturing

Weak Jobs Number Shows Burden of Government Regulations

April 7, 2015

ATLANTA, GA – Government overreach imposed on America’s manufacturing sector may have fueled the mediocre March jobs report, according to the chief executives of Job Creators Network. Last week the Institute for Supply Management reported American manufacturing had slowed for a fifth consecutive month, with no growth in factory payrolls.

“The cost of federal regulations on the average manufacturer is nearly $20,000 per employee,” said Alfredo Ortiz, President and CEO of the Job Creators Network. “It shouldn’t surprise us whenever hiring is flat in this sector because government overreach presents a major challenge to manufacturing expansion.”
 
Last year the National Association of Manufacturers released The Cost of Federal Regulation to the U.S. Economy, Manufacturing, and Small Business, a report itemizing the toll government rules impose on job creators. The report cited an average federal regulatory cost per manufacturing employee of $19,564, but a burden of $34,671 per employee for small manufacturers with payrolls of less than 50 workers.
 
If we’re going to stop crawling toward economic recovery and start running, then we need regular monthly job growth numbers closer to 300,000,” said Ortiz. “That will be much harder to accomplish with a federal rule book that practically pays manufacturers to create good paying jobs outside of America.”

The March jobs report showed 126,000 net new jobs created, and an unemployment rate of 5.5 percent.


“Just trimming this huge regulatory burden by ten percent would put thousands of dollars back in play behind every American manufacturing job,” concluded Ortiz. “Congress and the President should exercise the power they have to empower American manufacturing.”