U.S. manufacturing growth ramped up in August, with factory owners boosting production to its highest level since the peak of the 1990s boom.

However, it appears to be a jobless economic rebound as manufacturers also reported an increase layoffs.

The Institute for Supply Management said on Tuesday its August manufacturing index rose to 54.7, the highest since December last year, from 51.8 the prior month.

New orders for goods poured in at a faster pace, while backlogs of orders and export orders rose. As a result, manufacturers boosted production to the highest level since June 1999.

The employment index fell to 45.9 from 46.1 the prior month, showing nearly three years of layoffs that have led to almost 3 million job losses in manufacturing.

TD Economics said the report highlighted the persistent weakness in U.S. labour markets. “It is clear that hiring conditions in the U.S. remain sluggish more broadly.”