The latest S&P Global report proved worrisome for the manufacturing sector, with U.S. factory job cuts approaching the highest levels since the early COVID-19 pandemic and the 2008-2009 financial crisis.

This June report, called the S&P Global US Flash PMI, found that employment fell for the second month in a row as companies “focus on cost reduction amid high input prices and concerns over the outlook.” Compared to the “modest” cut in service jobs, manufacturing jobs were cut at the “fastest rate” since the pandemic lockdowns in 2020.

“Most worrying was the further fall in employment, notably in the manufacturing sector,” Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, wrote in the report. “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. However, while still running at one of the highest rates seen over the past four years, input cost inflation has shown sign of cooling in June thanks in part to the lower energy prices seen at the tail end of the survey data collection period.”

However, CNBC reports that the jobs picture has remained “largely solid” in 2026 with “strong gains in four of the five months.” The outlet also cites U.S. Bureau of Labor Statistics (BLS) that suggests manufacturing employment has rising by 23,000 this year.

S&P Global’s reading for its purchase managers index was 55.7 and 51 on the services side, both slightly up from May.

“The service sector continues to grow at an especially subdued pace, reflecting push-back from customers over high prices amid low levels of consumer confidence in particular,” Williamson wrote. “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. Supply delays grew more widespread in June.”

Back in February, President Donald Trump praised a hiring jump, as in the BLS’s jobs report, that showed the U.S. added 130,000 jobs in January. He celebrated the “FAR GREATER THAN EXPECTED” numbed as he pronounced, “The Golden Age of America is upon us!!!

New: The Mediaite One-Sheet "Newsletter of Newsletters"
Your daily summary and analysis of what the many, many media newsletters are saying and reporting. Subscribe now!