The bankruptcies of GM and Chrysler directly hurt the manufacturing sector. Employment fell by 156,000 in May. Job losses occurred in three main areas: motor vehicles and parts, machinery, and fabricated metal products. The industry should be poised for further loss as the auto industry restructures in the short term. The long-term auto manufacturing picture is yet to be seen, but the hope that new innovation around fuel efficient and plug-in cars will give the sector a much-needed boost. Job losses in construction did decelerate in May, employment in construction decreased by 59,000 compared to the average monthly job loss of 117,000 in the industry for the previous 6 months. 

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