Plastics and rubber unemployment rate hits 8.2 percent in January 

By Karen Hanna 

In an era that’s largely been marked by a tight labor market, the plastics and rubber industry hit a new post-pandemic record in January, when it experienced its highest unemployment rate in years.  

The industry’s unemployment rate in January — the most recent month for which data is available — was 8.2 percent, compared with 4.4 percent overall, according to the U.S. Bureau of Labor Statistics (BLS). Adjusting for seasonal fluctuations, the overall rate was 4 percent. 

The unemployment rate in the industry represents an eye-popping increase over recent months. From September through December 2024, the rate bounced from 5.9 percent to 2.2 percent to 0.3 percent to 5.9 percent, respectively. The figure has not exceeded 7.7 percent since September 2020, when the industry recorded 9.1 percent unemployment, amid worldwide market disruptions set in motion by the COVID-19 pandemic. 

Within the industry, the unemployment rate can experience swings, said Perc Pineda, chief economist for Plastics Industry Association (PLASTICS), who characterized the figure as volatile from one month to the next. 

“For instance,” he said, “it fluctuated from 0.3 percent in November to 5.9 percent in December, and from 0.4 percent in May to 1.9 percent in April, suggesting that the increase is likely transitory. Additionally, in December, there were publicly announced planned job cuts for the spring, affecting both plastics and rubber — likely contributing to the sharp increase.” 

According to the BLS, the January rate is the only time this decade the industry has recorded unemployment over 5.9 percent to start a year. 

In a PLASTICS report, Pineda projected further drops in employment in plastic parts making, with a reduction of 9,000 workers in the first quarter of this year and 7,900 workers in the second quarter. 

He also projected a drop of 0.5 percent in machinery production this year, with 1.6 percent decreases in both the first and second quarters, with very slight gains in employment. 

Mold making, which also declined last year, could see better news — the report projects a 0.6 percent production increase in 2025.  

“Plastic products manufacturing is now expected to have contracted by 4.6 percent in Q4 (2024), a sharper decline than the previously forecasted 1.3 percent decrease,” Pineda wrote. “The full-year forecast has been downgraded to a 1.7 percent decrease, compared to the earlier estimate of a 0.7 percent decrease. With larger production declines in [the second half of] 2024, next year could mark a transition period for plastics production. Year-over-year declines are expected to continue into 2025 as production gradually recovers from its lows. Production in 2025 could be 2.0 percent lower than in 2024, with decreases of 3.8 percent in Q1 and 3.6 percent in Q2.”