We are making more stuff with fewer people.
U.S. manufacturing has for decades been the world leader in the productivity gains that drive living standards higher. But more recently, practically every manufacturing economy around the globe has posted strong productivity gains and experienced job losses as a result. For example, China has actually lost more manufacturing jobs than America since 2000, with 4.5 million jobs gone vs. 3.1 million in the U.S. Among the top 10 industrial economies, which represent 75% of world manufacturing output, only Italy managed not to lose factory jobs since 2000.
Since 2000, with the aid of computers, telecommunications advances and ever more efficient plant operations, U.S. manufacturing productivity (the amount of goods or services a worker produces in an hour) has soared a dizzying 24%. That's 72% faster than the average productivity advance during America's four most recent recession-recovery cycles dating back to the 1970s.
Source: David Huether, BusinessWeek, April 3, 2006