Saturday, June 28, 2014

Pittsburgh Point Passing

My inner economic historian, along with my memories of a brief tenure on Wall Street, are just in shock that the stock of US Steel has been taken off of the S&P 500.  JP Morgan and Elbert Gary are turning over in their graves.  Something that is bigger news in Indiana than here it seems. Even the neomodern USAToday appreciates the history of it all.

Should not really be as much of a surprise I guess given the news today that more layoffs are coming at the corporation's headquarters Downtown, which all came in addition to the layoffs that were recently announced for US Steel operations in McKeesport. Note for those keeping count, the impact of neither of those two layoffs are yet reflected in any of the jobs data reported as yet. So when they actually go into effect, expect more freefall. 

That all motivated me to update this graph, which tells me I missed a related seminal point in Pittsburgh's economic history.  With the latest jobs data (for May 2014) made available last week, the proportion of regional jobs in manufacturing industries has now dropped to its lowest point ever.  This happened despite a very small uptick in manufacturing jobs, but it was a smaller jump than in the total job count. So by my count, manufacturing jobs are now at 7.4% of all local jobs, a proportion that has dropped down below a previous nadir that came in 2011.

and points for those who grok the title.


Anonymous Anonymous said...

I can just picture the conversation in the Godfather:

Hyman Roth: "Michael, we're bigger than U.S. Steel."

Michael Corleone: "Meh."

Sunday, June 29, 2014 7:23:00 PM  

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