U.S. Manufacturing Only Has Jobs for the Skilled Few

Nov. 8 (Bloomberg) -- Even with the recent strength in theU.S. manufacturing sector, labor-intensive industries won’treturn to the U.S. as long as the huge labor compensation gapspersist with Asian and other developing countries. Sure, therewill be niches created when quick delivery, changes in fashionand other developments require production to be close by.

The majority of what could be rapid growth in U.S.manufacturing will probably come from capital-intensive,robotics-intensive production that doesn’t require manypeople. Those employed in this area will need considerableskills. Furthermore, these are the industries that show rapidproductivity growth as new technologies are introduced. But whenproductivity growth is robust, output will rise substantiallywithout much increase in employment.