Manufacturing employment is contracting: The ISM Manufacturing Employment index hit 46.8 points in May, marking its 4th consecutive monthly contraction. Manufacturing employment has contracted in 18 of the last 20 months. Such long negative streak has rarely ever occurred outside of recessions. As a result, manufacturing employment has declined by 82,000 jobs over the last year. US manufacturing jobs now reflect only 8% of total nonfarm payrolls, an all-time low. The manufacturing sector is struggling.