Wall Street Journal (05/22/12) James Hagerty

A growing trend over the past two years is the “reshoring” of some manufacturing work in the U.S. that was “offshored” to low-cost producers like China in the past two decades. After a 35% decline in the number of U.S. manufacturing jobs between 1998 and 2010, the number has since increased by 489,000, or 4.3%, to 11.9 million. While much of that increase is due to the economic recovery rather than reshoring, the economics research firm IHS Global Insight forecasts that the number of manufacturing jobs will climb 3.2% this year compared with a 1.6% increase in all jobs.

A survey of 105 companies by David Simchi-Levi, an engineering professor and supply-chain expert at the Massachusetts Institute of Technology, found that 39% were considering moving some manufacturing back to the U.S. Surging Asian wages over recent years have made U.S. manufacturing more attractive for some companies, as have higher oil prices that have increased the cost of shipping goods across oceans.

However, the U.S. suffers from a shortage of trained workers in some areas vital for manufacturing, such as engineering and operation of computerized machinery. U.S. corporate taxes are higher than those in most other industrial nations. “It’s not that there’s going to be a flood [of manufacturing] back to the U.S.,” says Daniel Meckstroth, chief economist at the Manufacturers Alliance for Productivity and Innovation. Rather, the U.S. is seeing more of a balance, in which companies more carefully assess the pros and cons of producing domestically or overseas, with Asia no longer the default choice.

New York Times (05/21/12) Shaila Dewan

Alaska, Texas, Louisiana, and North Dakota have returned to their peak prerecession employment levels, according to a new analysis by the forecasting firm IHS Global Insight. The report predicts that 16 states will regain peak employment by the end of next year, and that all but eight will do so by the end of 2015. Nevada, Michigan, and Rhode Island are expected to be the laggards, not achieving peak employment until after 2017. “The states in the middle of the country have benefited from not being exposed to the housing boom and bust and also have gotten a kick from strong oil and gas demand,” says Jim Diffley, the chief regional economist at IHS.

Investor’s Business Daily (05/22/12) Jason Ma

Entrepreneurial activity in the U.S. is showing signs of deterioration, from startups to the self-employed, with entrepreneurs as a group appearing less likely to boost hiring. The number of startups with a payroll is the smallest in decades, and businesses staffed only by the owner are investing even less than in prior years.

Establishments less than a year old totaled 556,553 in 2010, according to the latest U.S. Commerce Department data, down 26% from the peak of 747,278 in 2006, and the lowest level since 1983, despite a 46% increase in the total number of establishments since then. Previous postrecession recoveries showed sharp increases. Startups are also smaller now than in prior years. By various measures, startups’ staffing has been trending lower for more than 10 years. Average employees at new establishments dropped from 10.8 workers in 2002 to 7.7 in 2010, according to Commerce Department data.

The booming mobile apps market has given rise to one-person companies consisting of a lone programmer, notes William Dunkelberg, chief economist at the National Federation of Independent Business. Technology has also reduced the need for staff for record-keeping, administration, and accounting, he adds.

SHRM Online (05/18/12) Kathy Gurchiek

The problem of long-term unemployment among older workers in the U.S. was the focus of a U.S. Senate Special Committee on Aging hearing on May 15. The hearing coincided with the U.S. Government Accountability Office’s release of a report that found the number of workers age 55 and older who have been unemployed more than six months has doubled since the recession began in late 2007.

Committee chairman Sen. Herb Kohl (D-WI) noted that while less than one in four unemployed older workers were out of work in 2007, more than half of unemployed workers who were out of work four years later were over the age of 55 “and confronting long-term unemployment.” Kohl pointed to the Platform to Employment program as one that “shows real potential” for helping to solve the problem of unemployment among older workers. The program partners with local businesses by placing older workers into internships. Additionally, Kohl announced his support for the proposed Protecting Older Workers Against Discrimination Act that was introduced earlier in March.

Associated General Contractors of America (05/18/12)

An analysis by the Associated General Contractors of America shows that construction unemployment varied in April, with 28 states and the District of Columbia seeing declines, three states maintaining employment levels, and 19 states adding jobs. For year on year numbers, North Dakota saw the largest percentage gains in construction employment, and Texas added the largest number of jobs, while Alaska lost the highest percentage, and Florida lost the largest number of positions. For monthly numbers between March and April, Iowa added the largest percentage and Texas the highest numbers, while Alaska lost the largest percentage, and Florida the highest numbers. Officials note that the mixed results reflect public sector declines in investment and growing uncertainty as firms focusing on public projects are hesitant to hire staff.