American manufacturing is adding blue-collar jobs at a pace that reverses years of decline, according to a new report from the White House Council of Economic Advisors. The report says 72,000 manufacturing positions have been created in 2026 alone, driven largely by increased production of durable goods such as metal and transportation equipment.
The CEA attributes the turnaround to a combination of reshoring incentives and tariff policies championed by President Donald Trump. The report points to the One Big Beautiful Bill Act, which allows manufacturers an immediate 100% tax deduction on expenses tied to building new factories and purchasing machinery and equipment. That provision, the advisors argue, has given companies a financial reason to expand domestically rather than move operations overseas.
The report highlights several companies that have already acted on the new incentives. Jergens, an Ohio-based manufacturer, has expanded into Illinois. Its CEO, Jack Schron, said employees are voluntarily working additional hours and keeping more of what they earn. Schron noted that 83% of his workers are picking up overtime since the law eliminated taxes on overtime pay. «It is a win-win-win: a win for the employee, for Jergens and for the United States economy,» he said.
In North Carolina, Ketchie Inc. has grown its workforce by 25% after using the 100% expensing provision to buy new machinery. According to the report, the company had delayed the purchase until the bill passed. The CEA also cites wage gains for manufacturing workers, whose pay has risen 7.9% since January 2025. Adjusted for inflation, the report says, blue-collar manufacturing workers are earning nearly $2,500 more per year on average since Trump took office.
The construction industry has added 100,000 jobs over the same period, according to the report. Semiconductor manufacturing, a sector where the United States typically competes with China, is also expanding. Micron is building memory chip plants in Idaho, Virginia and New York, a $250 billion investment. Apple is committing $600 billion to American semiconductor production. Major pharmaceutical companies like GSK and Gilead are investing billions in the United States, along with automakers such as Stellantis.
All told, the report says reshoring and tariff policies have generated $11 trillion in investments in the United States during Trump's second term. The CEA describes the current trend as a reversal of the Biden era, when 200,000 manufacturing jobs disappeared in the final two years of the previous administration.
The optimistic jobs picture arrives at a complicated political moment. With midterm elections only weeks away, inflation and the cost of everyday goods remain central concerns for voters. A Fox News poll found that 61% of respondents consider gas prices a major problem, up from 48% two years ago. Healthcare costs were cited as a major problem by 52%, up from 44%. Housing costs were named by 54%, down from 60%, and grocery prices by 62%, down from 66%. Nearly two-thirds of Americans say the economy is worse under the Trump administration than before.
The disconnect between the CEA's upbeat assessment and public sentiment underscores the challenge facing policymakers. While the report credits tax and trade policy with reviving domestic industry, many households continue to feel squeezed by high prices at the pump and in the grocery aisle. Whether the manufacturing gains translate into broader economic confidence before voters head to the polls remains an open question.