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By James Haughey -- Electronic News, 8/8/2005

After a long hiatus, U.S. computer and electronics factories are hiring again. In fact, 3,200 jobs were added in July, even though the rest of the manufacturing industry cut 7,200 jobs. New jobs were added in every sector, with the most hiring at components and semiconductor factories. Technology factories added 16,000 jobs in the last four months; all other manufacturers laid off 55,000 employees over the same period.

The recent hiring appears more sustainable than the temporary 15,000-job gain early in 2004, which was reversed when excess inventories accumulated late last year. Computer and electronic product inventories are currently leaner and underlying market demand is strengthening.

Overall employment increased 207,000 in July, above the 180,000 average for the last 18 months. More significantly, hours worked increased at a 6 percent annual pace and average hourly earnings rose at a 5 percent annual pace, which is double the trend in recent months.

James Haughey is director of economics at Reed Business Information, the parent company of Electronic News.