News US Economy News Labor Shortages Slowing Growth, Manufacturers Say By Diccon Hyatt Updated on May 6, 2022 Fact checked by Glenn Hunter Photo: Nitat Termmee / Getty Images Manufacturers remain optimistic about demand for their products these days—but finding enough workers to fill that demand continues to be another story, as supply chain woes keep plaguing the U.S. economy. Manufacturing companies saw more workers quit in April compared to March, and fewer companies made progress towards meeting their staffing targets, a monthly survey of supply chain executives showed Monday. Orders grew but at a slower pace, with a notable slowdown in export order growth. Overall, the Institute for Supply Management’s index measuring activity in the manufacturing sector fell to its lowest level since July 2020, below what economists had anticipated and indicating a slower pace of growth. “In April, progress slowed in solving labor shortage problems at all tiers of the supply chain,” said Timothy R. Fiore, chair of the Institute for Supply Management, in the report. Those labor shortages and supply chain problems have helped drive inflation to its highest level in four decades, and there was little sign of relief from higher prices in Monday’s report. “So, not a good month for manufacturers,” said Jennifer Lee, senior economist at BMO Capital Markets. Have a question, comment, or story to share? You can reach Diccon at firstname.lastname@example.org. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning! Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Institute for Supply Management. "April 2022 Manufacturing ISM® Report On Business."