Plastics and rubber unemployment rate hits record low

The most recent report released by Perc Pineda, chief economist for the Plastics Industry Association (PLASTICS), paints a picture of tepid growth. Meanwhile, the unemployment rate in January within the plastics and rubber sector fell to a record low for the month. 

Released on Feb. 19, the report, “Plastics employment outlook: Demand stability supports labor market gains,” notes that nondurable goods consumption rose 0.5 percent from October to November and 3.3 percent year-over-year, while durable goods consumption increased 1.1 percent from one month to the next, and from 2024 to 2025. 

“Against a backdrop of elevated interest rates — despite a lower Federal funds rate following three 25-basis-point cuts last year — and higher tariffs, plastics production has remained in relatively low gear, even as broader manufacturing activity continues to expand modestly,” the report states. 

The unemployment rate within the plastics and rubber sector declined from 4.7 percent in December 2025 to 1.1 percent in January 2026, compared with 8.2 percent last January and setting a record. 

Overall unemployment was 5 percent, with 433,000 total job openings within manufacturing as of December. 

Pineda predicted “a generally favorable employment outlook,” but warned challenges with hiring, along with high interest rates and tariffs, will persist. 

In another economic report released in early February, and in comments to Plastics Machinery & Manufacturing regarding the economic outlook for 2026, Pineda said processors should expect employment costs to rise due to minimum-wage hikes in some states, along with health care costs.