Saturday, December 29, 2007

Service Jobs - Summary

On this post we want to summarize the big picture of changes to service providing jobs from 1990 through 2024. The table below highlights sector job counts detailed from the sector job posts above. Remember it does not count people employed, which averaged 168.3 million for 2024. People employed counts wage and salary employment and the self employed both in and out of agriculture. The table below counts jobs, otherwise known as establishment employment without any self employed, which had a monthly average total of 156.1 million jobs in 2024. Jobs do not equal people employed because one person can have two or more jobs. One person with two jobs is counted twice in the jobs data, but once in the people employed data.

Summary of Service Industry Employment with pie charts below

 



Columns (2) and (4) in the table have annual average establishment employment by North American Industry Classification for 1990 and 2024. Columns (3) and (5) have their respective percentage shares of establishment employment with column (6) showing the gain or loss of jobs from 1990 to 2024. Column (7) has the difference of the percentage of sector employment for 2024 from the percentage for 1990. As a computation it is column (5) minus column (3). For example, row (2) shows changes and percentage shifts in goods production. Goods production employment declined 7.90 percent.

Column(8) translates the share changes into jobs from a share loss. For example row (2) shows 2.126 million jobs lost for goods production employment. If good production had maintained its share of employment as it was in 1990 there would be 10.568 million more goods production jobs than there are in 2024. The number is the product of total establishment employment in row (1) and column (4) and the percentage gain or loss in column (7). Notice that the loss of goods producing employment exactly equals the gain of service providing employment. The other rows in column (8) are computed the same way and distribute the share gains and losses between different industries.

The gain for service providing employment is not evenly distributed across service industries.  The gainers are grouped at the top of service providers and together they have an 11.53 percent gain. The losers are grouped at the bottom of service providers and together than have a 3.63 percent loss. Their combination equals 7.90 percent.

The table also highlights the shift of employment within service providing industries, where there are 15.240 million new jobs that resulted from an industry's percentage increase of all jobs. This contrasts with 4.853 million jobs lost that resulted from an industry's share decreases. The combination exactly equals the 10.568 million gain for service providing industries and the equivalent loss for goods production.

Two pie charts give a visual look at the changes in shares. The first chart has the percentage split of the nearly 42.266 million jobs in share gaining service sectors. The second chart has the percentage of 6.740 million jobs in share losing service sectors.

Distribution of 42.266 million Job Share Gains by Service Sector 1990-2024

 










Distribution of 6.740 million Job Share Losses by Service Sector 1990-2024


 

Saturday, December 22, 2007

Service Jobs - Government

Government (revised fall 2024)

Total government employment for federal, state and local government equals 22.782 million as of 2024. Government, excluding education and public hospital employment has 11.113 million jobs, which is the difference of 22.782 million and 10.549 million jobs in public education and 1.120 million public hospital jobs.

Jobs in government excluding education and hospitals include office work for executive offices, regulatory and legislative bodies, and the judiciary, but also all the rest of the jobs in parks, recreation, public health excluding public hospitals, public works, corrections and a few more. Federal employment includes the postal service and defense department among others.

Government produces valuable services. Valuable production should be added to Gross Domestic Product to reflect our hard work and productive capacity, but government’s valuable services are rarely sold so there is no market value to record as production. What is it worth to have Congress spend months passing environmental legislation, then to have executive bureaucracies write regulations to administer the law, and then to have courts hear law suits to interpret the law?

There is no ready measure of values to include in GDP so the practice is to value government services at cost. Government cost of production though is labor cost only. When the government buys computers and reams of paper it is recorded as a final sale from business to government. Since the goods and services government buys are already included in GDP as part of business final sales, they are not added again. Government’s cost of labor to provide services represents its contribution to GDP. It guarantees that more government jobs mean more Gross Domestic Product.

The decision to use labor cost as government’s addition to GDP is a sensible compromise in the computation of GDP. Since the objective of computing GDP is to measure our productive capacity, government work should not be ignored. No attempt is made to differentiate between one type of government labor and another. When services are bought in common as they are with government they could be for anything.

On April 1, 2005 the Washington Post published an article about a Congressional investigation: “Cost of Cisneros Probe Nears $21 million Over 10 years.” Cisneros was President Clinton’s Secretary of Housing and Urban Development way back in 1995. Congress authorized an independent counsel investigation after allegations that Cisneros lied about payments to his mistress. After 4 years and $10.3 million dollars of investigation, Cisneros pleaded guilty. That was in 1999, but the Washington Post reported the investigation continued in order to investigate if anyone attempted to obstruct justice. The continued probe added another $10.7 million to the expense, hence the caption “$21 million over 10 years”.

We could say America would be better off if the money used on the Cisneros probe went into medical research or highway construction, but that is different from saying government should reduce its total expenditures, or even that it wasted money. Either expenditure pumps $21 million into the economy and any cut in government spending whether it is for medical research, highway construction or Cisneros probes will reduce GDP and harm employment. Government is a major employer and even though the government has money to pursue what appears like a political vendetta America needs government that is actively creating or inventing jobs.

Current production by our federal, state and local government add up to $5.321 trillion in 2024 or nearly 10.6 percent of Gross Domestic Product. It is a big enough share to think that government production by all levels of government provides a mighty engine of employment. All this spending is supported by taxes and borrowing. Taxes reduce private spending and job creation, but those in government are experts at spending all their revenue as fast as they can. They run deficits and make debt finance a way to pep up employment and put off higher taxes. The federal government can borrow but also controls the money supply so it can create money to cover its spending and put off collecting taxes. Local governments can use bond-funded projects to speed up and enlarge spending in the near term and let the growth in property values and higher property taxes pay for capital projects in the future.

The decision to do Cisneros probes or build roads and highways is the decision of government. Builders and developers build a few roads in their new developments, but the roads that get people from here to there are planned and funded by a government. The actual building takes place through contracts to private firms in the highway, street and bridge construction industry.  The people who work in this industry are counted as part of employment in private business and not counted as government employees. Government employment is already large, but undercounts employment that is the result of government taxing and spending such as employment in the highway, street and bridge construction industry since they are on private payrolls even though their jobs are really the result of government spending. The terms government contractor, outsourcing and privatization all connote private businesses, but they are private businesses doing government funded and government sponsored work. Government employment added to government sponsored employment is more than a mere 22.782 million: much more.

Government creates many jobs both in and out of government but the jobs it has for those on government payrolls has lots of work that develop and support specialized skills and careers in life science, physical science, social science, finance, law, corrections, and transportation. Some of the work is not done anywhere else and requires government funding. We are excluding the jobs in education or public hospitals.

Many of the government’s specialized and professional jobs require college degree training but especially baccalaureate degree training, and that is without mention of the millions of jobs in education, since we are only discussing government excluding education. Nearly 34.3 percent of jobs in the federal government require BA degree skills or higher; 44.8 percent in state government; 21.7 in local government.

Among financial occupations budget analysts have 52 percent of 47.3 thousand jobs are in government and for financial examiners 19.7 percent of 63.4 thousand jobs are in government. All of tax examiners, collectors and revenue agents work for government, 54 thousand strong, and they support thousands more jobs at accounting firms and tax services.

In life science occupations, conservation scientists, zoologists, foresters, epidemiologists, soil and plant scientists have 22 percent of jobs in government. In physical science occupations, astronomers, atmospheric and space scientists, environmental scientists and hydrologists 31 percent of the jobs depend on government to maintain their work and support jobs. In social science occupations, geographers, historians, political scientists have 36 percent of jobs in government.  In economics, 52 percent of economists work in government jobs, although the percentage applies to those actually working as economists and not those teaching at public schools and universities. They are counted as faculty in education totals.

In engineering occupations, engineers have 12 percent of jobs in government with 23 percent of nuclear engineers, 16 percent of aerospace engineers and 31 percent of environmental engineers have jobs in government. Government employs 26 percent of statisticians and 49 percent of cartographers that hold jobs outside of teaching.

Counselors and social workers have 524.3 thousand jobs on government payrolls for those working as practitioners, but many work in health care where government supported or subsidized health care supports another 1.261 million jobs. Those totals do not count those teaching and working at schools and universities where there are 475.4 thousand more jobs. Counselors and social workers owe their employment to government.

Then there are courts that employ 100 percent of judges, magistrates, administrative law judges, adjudicators, hearing officers and law clerks and more than 21 percent of lawyers, or 155 thousand jobs. The courts enforce laws but law enforcement has more than 648.7 thousand government jobs as police and sheriffs patrol officers, another 113 thousand work as detectives and investigators, but more jobs are as fish and game wardens, parking enforcement officers, railroad and transit police, crossing guards, lifeguards and a few more. Law enforcement generates prisoners. American needs jobs and millions of prisoners create lots of jobs: 351.4 thousand reported jobs as correctional officers and jailors, 52.3 thousand jobs as first line managers of correctional officers and jailors and 85.9 thousand jobs as probation officers and correctional treatment specialists.

Outside of government office bureaucracies there are 178.2 thousand jobs like agricultural inspector, construction and building inspector, highway maintenance worker, power plant operator, water and sewage treatment plant operator where jobs are on government payrolls. Over 185.1 thousand work in government transportation jobs such as air traffic controllers, ambulance drivers, transit and intercity bus drivers, subway and street car drivers, bridge and lock tenders, and traffic inspectors among other jobs.

Finally, there are postal service occupations where 502.5 thousand work in specialized postal occupations as postmasters, postal clerks, mail carriers, mail sorters, processors and machine operators, production, planning and expediting clerks, and shipping, receiving and inventory clerks. Remember too we are talking about civilian employment so the armed forces are not included here.

Government service, excluding education and hospital employment, has 11.113 million jobs, but that is only 7.1 percent of establishment employment. There are no more service jobs left and we have distributed all 134.453 million of them by their NAICS sector categories.  It is time to make a summary of service employment changes, which comes up next.

 

Wednesday, December 19, 2007

Service Jobs - Food-Accommodation

Accommodation and Food Services (revised fall 2024)

Accommodation and Food Services jobs total 14.075 million by 2024. The accommodation part has traveler accommodations, not residential accommodation. Include hotels, motels, bed and breakfast inns, casino hotels, RV parks, campgrounds and rooming and boarding houses. Rooming and Boarding houses include dormitories, fraternity and sorority houses.

Establishments primarily engaged in preparing food to order for immediate consumption go in this sector as full and limited service restaurants but the key words are preparing food and immediate consumption.  Food services have to have both and the definition also fits fast food outlets, cafeterias, pizza delivery, snack bars, takeout, catering, ice cream parlors, and beverage bars. Establishments primarily selling food prepared elsewhere and not packaged for immediate consumption are counted with grocery stores.

Accommodations have 13.4 percent, or 1.891 million of the jobs, where as foodservices has the other 86.6 percent, or 12.184 million of the jobs. However, other sectors have restaurant jobs. For example, a hotel could run a restaurant even though it is primarily engaged in running a hotel. There is one establishment with hotel workers and food service workers. The same hotel might lease their first floor to an independent restaurateur so there might be two establishments, a hotel and a restaurant. In the former the jobs are counted in the accommodation sub sector, and in the latter, food jobs are split between accommodation and food services.

Food service occupations like cooks, bartenders, hosts and hostesses, waiters and waitresses, counter attendants, bartenders, dishwashers make up 88 percent of restaurant staffing. Cashiers have 346.3 thousand jobs but only 2.8 percent of staffing. Drivers have another 224.2 thousand jobs, but only 1.8 percent of staffing. Around 20 percent of food service jobs are scattered in accommodations, in health care where hospitals run food services, at schools which have cafeterias, at ball parks and theatres which run restaurants and sell fast food.

The accommodation industry has 23 percent of staffing in food service occupations and significant building and grounds maintenance occupations that include 406.5 thousand maids and housekeeping cleaners, almost 22 percent of jobs in hotel-motel employment. Desk clerks have another 253.8 thousand jobs or 13.4 percent of jobs at hotels, motels and resorts. Managerial occupations have 116.7 thousand jobs including lodging managers with 38.8 thousand of the jobs and general and operations managers having 30.7 thousand more. Managerial positions make up a little over 6 percent accommodations staffing. Only a few jobs or occupations use college degree skills and not too many stay around to make restaurant work a career.  The net separation rate for an occupation measures the percentage of new entrants needed to replace people who permanently leave an occupation.

Add the 12.183 million jobs in restaurants mentioned above to the other food service workers in accommodations, schools, hospitals, retail stores or ball parks, museums and other recreation facilities and the total comes to a little over 13.248 million food service jobs in the whole economy.

Cooking used to be one of America’s biggest do it yourself occupations. Everyone can stay home and cook, but more and more we go out. In the production-marketing chain of food this helps our employment and probably more than most people realize. Start on the farm and let’s count America’s farmers. Next add all the jobs in pesticide, fertilizer and agricultural chemicals, and all of the jobs in agricultural implement manufacturing. Add in the jobs at farm supply wholesalers, and farm raw material wholesalers. Then move on to food manufacturing. Add all the manufacturing jobs milling, canning, freezing, bottling, refining, slaughtering, baking, brewing, distilling, fermenting and packaging. Add them to grocery store merchant wholesaler jobs and all the jobs at grocery stores, convenience stores, liquor stores and food stores. The total comes to 8.811 million jobs by 2024.

Worse, jobs from the farm to the supermarket continue to decline due to productivity growth and imports in the global economy. Restaurants are the only part of the food chain Americans can count on for new jobs. You may like to go to restaurants; you may need to go to restaurants, but America needs jobs, so now you know, you must go to restaurants. It’s your civic duty. Go often.

Maybe a few get rich in the restaurant business but if we look at the wage data reported for the BLS occupational employment survey, then food services median annual wages are dead last among America’s occupations. The median annual wage of $32,240 in May 2023 was last among the 22 categories of America’s Standard Occupational classification. Food service occupations last in 2022 with a median wage of $29,640 as they were last in 2021, 2020, 2019, 2018, 2017 and so forth.

With a 134.453 million service jobs to divvy up, accommodation and food services employment gives us 14.075 million jobs, but that is only 9.02 percent of establishment employment.  Accommodation and food services employment continues to grow at rates faster than the national average and continues to provide replacement jobs for the declining share of manufacturing employment. We have to expect a relative increase in accommodation and food services in national employment. We only have 1 sector left to go; government with 11.113 million jobs. 


Friday, December 14, 2007

Service Jobs - Repair-Main-Personal

The Last Three Services from the Other Sector (revised fall 2024)

There are four sub-sectors that were put into the sector classification called, Other. One was non-profit organizations discussed earlier. The other three service sub sectors have little in common with each other, or non-profit organizations. They are repair and maintenance services, personal and laundry services, and private households.

Repair and maintenance had 1.453 million jobs by 2024 with 70 percent of jobs in car and truck repair. That total includes 182 thousand employed at car washes along with other jobs at bump shops and auto glass replacement. Car crashes reduce our well-being but create jobs and production adding to the gross domestic product.

The rest of repair and maintenance has 347.7 thousand jobs at establishments fixing or maintaining commercial machinery and electronic equipment, or fixing household goods. More than half of these jobs are in the commercial segment. Establishments doing household repairs for lawnmowers, appliances, shoe repair, watch repair, upholstery and a few more have around 86.1 thousand jobs.

Personal services had 1.536 million jobs by 2024. Beauty parlors and barbershops have 402.1 thousand jobs and continue to grow. The rest of the jobs are at funeral parlors, cemeteries, crematories, laundry and dry cleaning, pet care, photo finishing, and parking lots. Laundry and dry cleaning services and photo finishing jobs continue to drop a few thousand jobs a year. Parking lot jobs had a high of 145.7 thousand jobs in 2018 but dropped in the Covid Pandemic and finished 2023 with 124.6 thousand jobs.

Pet care services employment has increased steadily from just 23.1 thousand jobs in 1990 to 183 thousand by 2024. The only occupation with a large number of jobs in the pet care services industry has the Bureau of Labor Statistics definition of non-farm animal caretaker. Their job description turns out to be a list of down to earth activities: train, feed, water, groom, bathe and exercise animals, and clean, disinfect and repair their cages. There are 135 thousand of these jobs and some work at zoos but quite a few classify as personal services, mostly as kennel workers and dog walkers.

Repair and maintenance and personal service firms have very similar staffing in that they all tend to have a manager, a receptionist, an office clerk, a bookkeeper and maybe a secretary or someone else in office administration. After that it is jobs doing services. Few jobs need college degree skills in any of these sub sectors.

Many jobs here in installation, maintenance and repair require training and experience and the best jobs in these sub sectors are doing these occupations. Automotive service technicians and mechanics have 242.2 thousand jobs just in auto repair shops out of 676.6 thousand total jobs. Other auto mechanics work at auto dealerships or for gasoline stations. About another 129.9 thousand do car body repair or replace broken glass out of independent shops.

Electrical and electronics installation, maintenance and repair occupations have 31.2 thousand out of 666.2 thousand jobs. Many of these occupations also have jobs in manufacturing, retail and the telecommunications industries.

Private households are classified as an industry in the North American Industry Classification System because households employ cooks, maids, butlers and caretakers to produce services at households. These services are transactions and production and so they are counted as part of the GDP and given their own sector. They are not counted as part of establishment employment because households are not establishments for purposes of establishment data. The Bureau of the Census reports 672.2 thousand jobs in non-agricultural households with 336.4 thousand jobs as maids and housekeeping cleaners, and 183.4 thousand child care workers and 112.4 thousand home health and personal care aides, which accounts for almost all of private household employment.

With a 134.453 million service jobs to divvy up, repair and maintenance services and personal services employment gives us a total of 2.988 million jobs, but that is only 1.92 percent of service employment. Repair and maintenance services has growth close to the national average while personal services lags behind at a slower growth rate of .96 percent per year from 1990 to 2024. Personal services will continue to lose share even though they have more jobs. We have two sub sectors left to go: accommodation and food services, and government service, excluding education. These two sectors have 25.189 million jobs.

Thursday, December 13, 2007

Labor Market Forecast

Forecasting Labor Market Trends from 2006 to 2014

On this blog we believe forecaster’s would have a bigger following if they would explain more about their methods, which are not that complicated. Forecasting requires a blend of technique and a set of assumptions. For example, forecasting labor markets for the years ahead depends on the continued physical availability of gasoline. Shut off the gasoline and forecasts go haywire. Lack of gasoline will affect all economic forecasts, but labor markets have their own assumptions and peculiarities, which if discussed and described will improve the credibility of forecasts.

The links here go first to the national forecast and forecast table and then to progressive levels of forecast detail. Second, there are things to know in labor forecasting. Third, there are forecasts of relative growth and change by sectors for high growth, slow growth and decline. Fourth, there is a discussion for each of the 22 sectors from the forecast table.


The Forecast

The national non-farm jobs projection calls for an average of 1.876 million new jobs per year or an increase from 136.174 million establishment jobs in 2006 to 151.182 million jobs in 2014, which is just more than 15 million new jobs. That is an annual growth rate of 1.32 percent in the years 2006-2014. The growth rate from 1990 to 2006 was 1.37 percent so the projected growth rate is just below the most recent average annual growth rates. The forecast table below divides the total increase into 22 industry sectors and gives a summary by sectors.

Forecast Table



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Things to know in Labor Forecasting

First, long term forecasts use different methods than short term forecasts. Monthly or quarterly job forecasts use the same methods and carry the same risks as forecasting business cycles or recessions and expansions. Multi year forecasts ignore cycles and develop defensible yearly trends based on movements in population, productivity, technology and trade in the global economy. The forecasts above are long term annual forecasts.

Second, long term job forecasts start with population changes. The civilian population over age 16 continues to grow. Since 1990 the compounded annual rate of growth equals 1.2 percent using Current Population Survey data. If we projected that jobs would increase by population growth it would be a decent long term estimate since we know a growing population requires jobs. We can do better than that because there is more data and we want some details.

Third, a steady percentage of adults enter the workforce. In 1990 the civilian labor force was 66.5 percent of the civilian population; in 2006 it was 66.2 percent, where the civilian labor force includes the employed plus the unemployed actively seeking work. There are minor fluctuations month to month but for the last 20 years 66 percent and a fraction of adults entered the labor force. In the future we can be confident 66 percent of a growing adult population will be working or looking for work. The percentage does not gyrate and if it grows it will grow slowly.

A predictable percentage of the population entering the workforce helps a lot in forecasting. From 1990, the civilian labor force grew at an annual rate of 1.16 percent, employment grew at an annual rate of 1.23 percent and we already know from above that the civilian population over age 16 grew at 1.2 percent. Because the population totals are so much bigger a change in the flow of people entering the workforce, or a change in the flow of unemployed can cause the rates to vary, but as we can see they do not vary very much. That makes it possible to move from population growth to job growth in predictable way.

Fourth, employment data is subdivided by class. Start with 144.4 million people employed. The first subdivision breaks employment into agricultural and non-agricultural employment. Agricultural employment is down to 2.2 million and its sinking: down, down, down. It is 1.5 percent of employment for 2006 leaving 142.2 million in non-agricultural employment, or 98.5 percent of people employed.

Non-agricultural employment has its own sub divisions for wage and salary employment and the self-employed which include unpaid family workers who work 15 hours a week or more in a family business. Out of 142.2 million nonagricultural employed 132.4 million are wage and salary employment and 9.8 million are self employed. The 132.4 million people employed in wage and salary employment are almost 92 percent of the 144.4 million total from above.

The wage and salary employment cited above are people working. They might have one job or they might have two, but they are counted once in wage and salary employment. At the Bureau of Labor Statistics they also count jobs as part of their Current Employment Survey. Jobs and people employed in wage and salary employment are almost the same, but not quite. If one person has two jobs, or for that matter three or four jobs, they are counted as one person in wage and salary employment, but the Current Employment Survey counts jobs so a person holding two jobs gets counted as two jobs in jobs data.

The wage and salary employment of people and the number of jobs both increased at the same annual percentage rate of growth from 1990 to 2006; it was 1.37 percent per year. Because some people hold two or more jobs the 2006 total of jobs is 136.2 million jobs, an amount nearly 4 million more than the number of people in wage and salary employment from above. These projections on this blog are for jobs data.

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Forecasting Relative Change by Sector: High Growth, Slow Growth and Decline

In labor forecasting jobs will go up if the population goes up and for national forecasts such as these we know population has been growing and will be growing. If the jobs in all 22 sectors increased at the same rate as the total of non-farm jobs then there would not be any shift in relative share of jobs and all sectors would gain enough new jobs to maintain their percentage of the total. More would be working but all in the same proportion from one year to another. However, growth rates among the sectors vary and make up three distinct categories of change, which are high growth, slow growth and negative growth.

Looking at the forecast table you can tell the difference of the three categories by the annual growth rates in the last two columns. Those sectors with growth rates above the non-farm growth rate gain relative share; those with growth rates below the non-farm average but still positive will gain jobs but lose relative share; those with negative growth rates will lose jobs and lose share. The 22 sectors are listed in the categories below with further discussion and background by sector below that. Remember the annual average growth rate from 990 to 2006 is 1.37 Percent.

The first category has growth rates greater than the national average for 1990 to 2006 and forecasted for 2006 to 2014. High growth rates in the first category include 10 of the 22 sectors that continue to grow and have a bigger share of America’s jobs. Ordered by growth rate(%) from highest to lowest they are (1) Administrative Support & Waste Management Services(3.78%), (2) Arts, Entertainment and Recreation( 3.37%), (3) Professional and Technical Services(3.05%), (4) Health Care(3.00%), (5) Construction(2.39%),(6) Food Services, and drinking places(2.28%), (7) Public and Private Education(2.17%), (8) Non-profit Organizations(1.94%), (9) Real Estate and Rental Leasing(1.81%), (10) Transportation and Warehousing(1.58%).

The second category has 9 of the 22 sectors with growth rates less than the national average for 1990 to 2006 and 2006 to 2014. Slow growth rates assure sectors with more jobs, but their slow growth assures they will have a decreasing share of jobs. Ordered by growth rate from highest to lowest they are (1) Finance and Insurance(1.36%), (2) Repair and Maintenance(1.34%), (3) Retail Trade(.94%), (4) Personal and Laundry Services(.86%), (5) Accommodation(.80%), (6) Information Services(.80%), (7) Wholesale Trade(.71%), (8) Government, Excluding Education (.54%), (9) Management of Companies and Enterprises(.51%).


The third category has 3 sectors with negative growth rates for 1990 to 2006 and 2006 to 2014. Negative growth rates mean fewer jobs and necessarily a declining share of non-farm total employment. Ordered by growth rate from highest to lowest or least negative to most negative they are (1) natural resources(-.70%), (2) manufacturing(-1.37%), and (3) Utilities(-1.86%).

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Background and Discussion by Sector

High Labor Growth Rates
Administrative Support & Waste Management Services
Arts, Entertainment and Recreation
Professional, Scientific and Technical Services
Health Care Services
Construction
Food Service and Drinking Places
Education Services, Private & Public Combined
Non-Profit Organization Services
Real Estate and Rental Leasing
Transportation and Warehousing

Slow Labor Growth Rates
Finance and Insurance Services
Repair and Maintenance Services
Retail Trade
Personal and Laundry Services
Accommodation Services
Information Services
Wholesale Trade
Government, excluding education
Management of Enterprises

Negative Labor Growth Rates
Natural Resources
Manufacturing
Utilities

High Labor Growth Categories

1) Administrative Support & Waste Management Services

Combined administrative support and waste management had 8.374 million jobs in 2006 with a 6.1 percent growth rate. Establishments in this sector sell almost everything they do to other establishments and not to final consumers. Only about 4 percent of the jobs are in waste management and even though jobs there are growing they will only amount to 6 or 7 thousand more jobs a year. The other 96 percent of jobs are in administrative support, which has quite a smorgasbord of services. Include jobs in office administration and facilities support, employment services, but also business services like telephone call centers and document preparation, and others like travel and reservation services, security and investigation services, building and janitorial services. Employment services have the biggest share, nearly 45 percent of the total.

Administrative Support & Waste Management Services has the distinction of having the fastest growth rate for jobs in the 22 sectors: 3.78 percent. The forecasted growth rate from 1990 to 2014 is a more modest 3.51 percent with an expected annual increase of 275 thousand jobs per year. Because administrative and support services has high growth it has a growing share of America’s jobs. Check the forecast table to calculate an increase of 5.951 million jobs. The increase is the difference of 10.576 million jobs in 2014 and 4.625 million jobs in 1990. If job growth in administrative support had been the same as overall job growth for non-farm employment jobs there would be 1.754 million new jobs instead of 5.951 million. Taking the difference gives us 4.197 million new jobs that increase the share of administrative support jobs in non-farm employment. Many of these jobs are replacement jobs for declining manufacturing and 1.836 million of them are in temporary help services. back

2) Arts, Entertainment and Recreation

Establishments in arts, entertainment and recreation had 1.926 million jobs in 2006, which is 1.4 percent of non-farm employment. The arts and entertainment parts of this sector has art and entertainment put on by theatre and dance companies, orchestras, music groups, sports teams, sports promoters, racetracks, and independent artists, writers, or performers. Include museums, zoos, nature parks, botanical gardens and historical sites where there is looking rather than live entertainment. The recreation part of this sector has recreation at amusement parks, arcades, gambling casinos, golf courses, ski resorts, marinas, fitness centers, sports centers, ice rinks, swimming pools, bowling alleys, billiard parlors, day camps, riding stables and a few more. The arts and entertainment part has a little over 522 thousand jobs; the recreation part 1.4 million. Fitness centers are by far the largest employer here with over 500 thousand jobs. Golf courses and country clubs are next with 344 thousand jobs in 2006. Casino gambling jobs do not include jobs at casino gambling hotels, those jobs are in accommodations. However, gambling as a drop in recreation has 137 thousand jobs and a higher growth rate than any other part of recreation, averaging above 9 percent a year starting in 1990.

Arts, entertainment and recreation services sector has fast growth from the forecast table, actually second fastest growth with an annual rate of 3.37 percent since 1990. Check the forecast table to calculate 1.225 million new jobs, which is the difference of 2.360 million jobs in 2014 and 1.133 million jobs in 1990. If job growth in arts, entertainment and recreation services equaled the growth rate for non-farm employment there would be only 430 thousand new jobs instead of 1.227 million. Taking the difference of 1.227 million from 430 thousand equals 797 thousand of the new jobs that increase the share of arts, entertainment and recreation jobs in non-farm employment. back


3) Professional, Scientific and Technical Services

Professional, Scientific and Technical Services had 7.371 million jobs in 2006 and 5.4 percent of non-farm jobs. It has “establishments that specialize in performing professional, scientific and technical activities for others.” That comes directly from the North American Industry Classification Manual. The manual goes on to explain that establishments in this sector use processes where human capital is the major input. “Establishments rely on employee skills and knowledge to deliver expertise to clients.” Computer system design and related services is the biggest of the service sectors here with almost 1.278 million jobs out of 7.371 million jobs reported in the forecast table. Legal services are next with about 1.173 million jobs followed by management and technical consulting services, accounting and related services, engineering services, scientific development and research services, advertising and related services, public relations services, architectural services, veterinary services, interior and graphic design services.

Most of the professional occupations that require specialized degree training have employment somewhere among these services. Include lawyers, engineers, architects, accountants, graphic designers, veterinarians. With research services in this sector there are also jobs for chemists, physicists, epidemiologists and a few more. Most of the services and the occupations that go with them continue to increase faster than the non-farm average. Because the manufacturing sector uses many engineers and manufacturing jobs are in decline, some of the growth in engineering jobs in this sector is net of losses in manufacturing.

Professional, Scientific and Technical services has the third highest job growth from the forecast table with a yearly average growth in jobs of 3.05 percent. Check the forecast table to calculate 4.226 million new jobs, which is the difference of 8.783 million jobs in 2014 and 4.557 million jobs in 1990. If job growth in professional, scientific and technical services equaled the growth rate for non-farm employment jobs there would be only 1.728 million new jobs instead of 4.226 million. Taking the difference gives 2.498 million of the new jobs that increase the share of these jobs in non-farm employment. back

4) Health Care Services

Establishments in the health care have 14.9 million jobs in 2006, nearly 11 percent of non-farm employment. It has jobs divided among four health care sub-sectors: ambulatory care, hospital care, nursing and residential care and social assistance. The biggest share of the jobs, more than 35 percent, classify as ambulatory care in offices of physicians, outpatient care centers, lab services and home health services. Hospitals are next with nearly 30 percent of jobs although ambulatory health care continues to grow faster than hospital employment. Nursing and residential care have around 20 percent of jobs. Fourth and last, there is social assistance which has 2.3 million jobs. However, 806 thousand of these jobs are in child day care centers, which the North American Industry Classification Committee decided to put in the health care sector. Other establishments in social assistance have jobs in family assistance services, community, emergency, relief and rehabilitation services. The sub-sector employs many social workers and counselors.

Health care in all four sub-sectors has the fourth highest job growth from the forecast table with a yearly average growth in jobs of 3.00 percent. Check the forecast table to calculate an increase of 8.280 million jobs, which is the difference of 17.575 million jobs in 2014 and 9.295 million jobs in 1990. If job growth in health care equaled overall job growth for non-farm employment jobs there would be 3.525 million new jobs instead of 8.280 million. Taking the difference gives 4.755 million of the new jobs that increase the share of health care jobs in non-farm employment. back

5) Construction

Establishments in construction had 7.69 million jobs in 2006 with 5.9 percent of non-farm employment. Construction has jobs in three sub sectors, building construction, construction in civil engineering, especially highways, streets, bridges, utility and water-sewer systems and a third sub sector, specialty trade contractors. Building construction has 1.8 million jobs with a little over 1 million of the jobs in residential construction. Around 63 percent or 4.9 million of the jobs are in specialty trades, which are electric, plumbing, roofing, masonry and the building trades. These jobs support other construction but mostly in residential construction.

Construction has the fifth highest job growth from the forecast table with a yearly average growth in jobs of 2.39 percent. It is the only sector in goods production that we can count on for new jobs. Check the forecast table to calculate 3.569 million new jobs, which is the difference of 8.834 million jobs in 2014 and 5.266 million jobs in 1990. If job growth in construction equaled overall job growth for non-farm employment jobs there would be 1.997 million new jobs instead of 3.569 million. Taking the difference tells us 1.572 million of the new jobs increase the share of construction jobs in non-farm employment. back

6) Food Service and Drinking Places

Establishments primarily engaged in preparing food to order for immediate consumption go in this sector as full and limited service restaurants. They had 9.379 million jobs in 2006 with 6.9 percent of non-farm employment. Full and limited service restaurants are just one part of food services, which includes a long list of cafeterias, pizza delivery, snack bars, takeout, catering, ice cream parlors, and beverage bars. These are not all the jobs in restaurants just restaurants. Jobs at restaurants attached to hotels, motels or other accommodations are counted there. Accommodations, as you will see below, have only 1.8 million jobs so most of the restaurant jobs are here.

Food Service and Drinking places have the 6th highest job growth from the forecast table with a yearly average growth in jobs of 2.28 percent. Check the forecast table to calculate 3.954 million new jobs, which is the difference of 10.493 million jobs in 2014 and 6.539 million jobs in 1990. If job growth in food services equaled overall job growth for non-farm employment jobs there would be 2.480 million new jobs instead of 3.954 million jobs. Taking the difference means 1.475 million of the new jobs increase the share of food service jobs in non-farm employment. back

7) Education Services, Private & Public Combined

Educational services had 13.149 million jobs in 2006 with 9.7 percent of non-farm employment. The job total has both public and private schools including colleges, universities and junior colleges. Local governments dominate education employment with the biggest block of education jobs, more than double private education. Also include trade schools and other specialty training in language, fine arts and sports. Other supporting educational services bring in jobs in testing, tutoring, and consulting.

Educational Services has the seventh highest job growth from the forecast table with a yearly average growth in jobs of 2.17 percent. Check the forecast table to calculate 5.779 million new jobs, which is the difference of 15.099 million jobs in 2014 and 9.320 million jobs in 1990. If job growth in education services equaled overall job growth for non-farm employment jobs there would be 2.245 million new jobs instead of 5.779 million. Taking the difference gives us 3.534 million new jobs that increase the share of education service jobs in non-farm employment. back

8) Non-Profit Organization Services

Non-Profits had 2.900 million jobs in 2006 with 2.13 percent of non-farm employment. Non-profits have religion among other groups in Grant Making and Giving services, giving away money to worthy applicants, or Social Advocacy Organizations promoting causes like wildlife preservation and birth control, or Civic and Social Organizations like scouting, fraternal lodges, or social clubs promoting the civic and social interests of members, and finally Business, Professional, Labor, Political and Similar Organizations like the Chamber of Commerce, International Brotherhood of Teamsters and State and Federal Bar Associations. Include PAC’s here.

Non-Profit Organizations have the eighth highest job growth from the forecast table with a yearly average growth in jobs of 1.94 percent. Check the forecast table to calculate 1.265 million new jobs equal to the difference of 3.397 million jobs in 2014 and 2.132 million jobs in 1990. If job growth in non-profit services equaled overall job growth for non-farm employment jobs there would be 809 thousand new jobs instead of 1.265 million. Taking the difference tells us 456 thousand of the new jobs increase the share of non-profit service jobs in non-farm employment. back

9) Real Estate and Rental Leasing

Real estate and rental leasing had 2.180 million jobs in 2006 with 1.6 percent of non-farm employment. Establishments in real estate did not get its own sector in the North American Industry Classification System. Instead it is a sub-sector within a bigger sector that includes rental and leasing establishments that rent or lease cars, trucks, RV’s, appliances, formal ware, costume ware, videos, health equipment, commercial machinery or equipment, or just about anything you can imagine.

The real estate sub-sector has 1.5 million jobs where establishments sell, buy or rent real estate through agents or brokers but also all other establishments that rent, lease or management real estate for others. A small part of asset leasing has establishments that lease patents, trade marks and franchise agreements, but it has only 29 thousand jobs.

Real Estate and Rental Leasing have the ninth highest job growth from the forecast table with a yearly average growth in jobs of 1.81 percent. Check the forecast table to calculate 811 thousand new jobs, which is the difference of 2.446 million jobs in 2014 and 1.635 million jobs in 1990. If job growth in real estate and rental leasing services equaled overall job growth for non-farm employment jobs there would be 620 thousand new jobs instead of 811 thousand. Taking the difference gives us 191 thousand new jobs that increase the share of real estate and rental leasing service jobs in non-farm employment. back

10) Transportation and Warehousing

Transportation and warehousing services had 4.465 million jobs in 2006 with 3.28 percent of non-farm employment. Establishments hauling freight and moving passengers in modal transportation have 2.6 million of the jobs as part of air, rail, water, pipeline, truck, bus, taxi, and limousines services. Truck transportation firms have 1.4 million of these jobs, more than half of modal transportation employment. Include transportation support services, couriers and messenger services and warehouse and storage firms, which have another 1.819 million jobs as part of the transportation sector. Support activities defy easy description, but employ 571 thousand in jobs providing services for port, terminal and harbor operations and airports with work in loading, unloading, navigation, logistics, packing, crating, and towing, but very little transporting.

Transportation and warehousing services have the tenth highest job growth from the forecast table with a yearly average growth in jobs of 1.58 percent. Check the forecast table to calculate 1.485 million new jobs, which is the difference of 4.961 million jobs in 2014 and 3.476 million jobs in 1990. If job growth in transportation and warehousing services equaled overall job growth for non-farm employment jobs there would be 1.318 million new jobs instead of 1.485 million. Taking the difference tells us 166 thousand of the new jobs will increase the share of transportation and warehousing services jobs in non-farm employment. back

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Slow Growth Categories

1) Finance and Insurance Services

Finance and insurance services had 6.183 million jobs in 2006 with 4.54 percent of non-farm employment. Finance and insurance has establishments that accept deposits and make loans. These were formerly known as banks, savings and loan and credit unions, but in the North American Industry Classification these and a few others like credit card issuers, consumer lenders, and real estate credit firms are known as Credit Intermediaries. Credit Intermediaries had 2.936 million jobs in 2006, or 47 percent of the total of 6.183 million finance and insurance jobs in 2006. Next are 817 thousand jobs in establishments that buy and sell someone else’s stocks and bonds for a fee or commission: stock brokers and investment bankers. Include 2.315 million jobs in a third sub sector: insurance carriers. Finally there are establishments that manage funds and trusts: pension funds, mutual funds, but with only 93 thousand jobs. Money is so complicated.

Finance and insurance has slow growth, but just .01 percent below the non-farm average from the forecast table with yearly average growth in jobs of 1.36 percent. Check the forecast table to calculate 1.751 million new jobs, which is the difference of 6.730 million jobs in 2014 and 4.979 million jobs in 1990. If job growth in finance and insurance services equaled the growth rate for non-farm employment there would be 1.888 million new jobs instead of 1.791 million. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of finance and insurance services jobs. Finance and insurance needed 137 thousand more new jobs to keep its share of non-farm employment. back

2) Repair and Maintenance Services

Establishments in repair and maintenance services had 1.248 million jobs in 2006, but the majority of jobs are repairing cars and trucks. America has nearly 900 thousand people fixing cars, or if you notice at the DMV they called them vehicles. That total includes 150 thousand employed at car washes along with jobs at repair shops, bump shops and auto glass replacement. Car crashes reduce our well-being but create jobs and production adding to the gross domestic product.

The rest of repair and maintenance has 361 thousand jobs at establishments fixing or maintaining commercial machinery and electronic equipment or fixing household goods. Almost 180 thousand fix commercial machinery and another 104 thousand fix electronic and electronics equipment, especially computers. Establishments doing household repairs for lawnmowers, appliances, shoe repair, watch repair, upholstery and a few more have around 78 thousand jobs.

Repair and maintenance services has slow growth but just a few hundredths below the non-farm average from the forecast table with yearly average growth in jobs of 1.34 percent. Check the forecast table to calculate 439 thousand new jobs, which is the difference of 1.448 million jobs in 2014 and 1.009 million jobs in 1990. If job growth in repair and maintenance services equaled overall job growth for non-farm employment there would be 383 thousand new jobs instead of 439 thousand. Taking the difference gives us a gain of 56 thousand new jobs. Even though repair and maintenance has been growing just below the non-farm average between 1990 and 2006, its growth rate is forecast to be above the non-farm growth rate so it will gain a small share of non-farm jobs for 2014. back

3) Retail Trade

Retail trade had 15.321million jobs in 2006 with 11.25 percent of non-farm employment. Retail establishments sell goods to final consumers classified in 12 retail sub sectors. General merchandise stores have the most jobs, 2.9 million. General merchandise includes department stores, warehouse stores and super centers. Food and Beverages stores follow closely with 2.8 million jobs. Together they have 37 percent of retail jobs. Motor vehicle and parts dealers has third place with 1.9 million jobs. Among the remaining nine sub-sectors only Building Material and Garden Supply stores and Clothing Stores have more than a million jobs. Furniture and home furnishings, electronic and appliance stores, health and personal care stores, gasoline stations, sport, hobby and music stores, pet supply stores, and non-store retailers round out the sub sectors.

Retail trade has slow job growth from the forecast table with a yearly average growth in jobs of .94 percent. Check the forecast table and calculate 3.706 million new jobs, which is the difference of 16.889 million jobs in 2014 and 13.183 million jobs in 1990. If job growth in retail trade equaled overall job growth for non-farm employment there would be 4.999 million new jobs instead of the 3.709 million. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of retail services jobs. Retail trade needed 1.293 million more new jobs to keep its share of non-farm employment. back

4) Personal and Laundry Services

Personal and Laundry services had 1.3 million jobs in 2006, which was just below one percent of non-farm establishment employment. The personal services part has most of the jobs, almost a million. Barber shops and beauty salons have 475 of these jobs but the other jobs in other personal services include massage parlors, tattoo parlors, tanning salons, weight loss centers, death care, pet care services, photo finishing, parking lots, dating services, wedding planning, bail bonding and a few more, but you get the picture. Most of these personal services are growing faster than the non-farm average, especially parking lots and pet care. However, laundry services, which have dry cleaning, coin operated laundries and linen services have decreasing employment so the net increase keeps the total increase at modest rates.

Personal and Laundry services has slow job growth from the forecast table with a yearly average growth in jobs of .86 percent. Check the forecast table to calculate 273 thousand new jobs, which is the difference of 1.396 million jobs in 2014 and 1.120 million jobs in 1990. If job growth in personal and laundry services equaled the rate of growth for non-farm jobs there would be 425 thousand new jobs instead of 273 thousand. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of personal and laundry service jobs. Personal and Laundry services needed 152 thousand more new jobs to keep its share of non-farm employment. back

5) Accommodation Services

Establishments in accommodation had 1.834 million jobs in 2006. The accommodation in the accommodation and Food services sector has traveler accommodations, not residential accommodation. Include hotels, motels, bed and breakfast inns, casino hotels, RV parks and campgrounds. The NAICS committee decided to put economic activity and jobs for rooming and boarding houses here. Rooming and Boarding houses include dormitories, fraternity and sorority houses, even though rooms at these establishments amount to transient housing in between travel and residential living. Residential Advisor has 56 thousand jobs nationwide with lots of those jobs at college dorms and fraternity and sorority houses.

Accommodation has slow job growth from the forecast table with a yearly average growth in jobs of .80 percent. Check the forecast table to calculate 389 thousand new jobs, which is the difference of 2.004 million jobs in 2014 and 1.615 million jobs in 1990. If job growth in accommodation services equaled the rate of growth for non-farm jobs there would be 613 thousand new jobs instead of 389 thousand. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of accommodation jobs. Accommodation services needed 224 thousand more new jobs to keep its share of non-farm employment. back

6) Information Services

Information services had 3.054 million jobs in 2006, which is 2.24 percent of non-farm establishment employment. Information Services attempts to include all the establishments that produce, distribute or transmit information or cultural products. Establishments publishing books, magazines, newspapers, films, sound recordings or producing television and radio programming are included here so there are jobs as announcers, reporters, analysts, writers and editors. Film and sound recording establishments include jobs as producers, directors, actors, musicians and artists. Establishments that distribute and transmit information include a variety of telecommunications: phone service, cellular, paging, cable, satellite, Internet Service, web search firms, and libraries. These establishments tend to own, operate, and maintain facilities.

Information services has slow job growth from the forecast table with a yearly average growth in jobs of .80 percent. Check the forecast table to calculate 550 thousand new jobs, which is the difference of 3.238 million jobs in 2014 and 2.688 million jobs in 1990. If job growth in information services equaled the rate of growth for non-farm employment jobs there would be 1.019 million new jobs instead of 550 thousand. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of information services jobs. Information services needed 470 thousand more new jobs to keep its share of non-farm employment. back

7) Wholesale Trade

Wholesale trade had 5.897 million jobs in 2006, which was 4.3 percent of non-farm employment. Wholesale establishments sell or arrange the sale of goods for resale, or sell or arrange the sale of raw materials or production supplies and equipment. Wholesale trade includes establishments that supply retail outlets, but wholesale jobs result from selling supplies, materials and equipment to industrial or construction firms and selling supplies, materials and equipment to offices, hospitals, and clinics.

Wholesale trade has slow job growth from the forecast table with a yearly average growth in jobs of .71 percent. Check the forecast table to calculate 975 thousand new jobs, which is the difference of 6.244 million jobs in 2014 and 5.268 million jobs in 1990. If job growth in wholesale trade equaled the rate of growth for non-farm jobs there would be 1.998 million new jobs instead of 975 thousand. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of wholesale jobs. Wholesale trade needed 1.022 million more new jobs to keep its share of non-farm employment. back

8) Government, excluding education

Government Service, excluding education had 11.757million jobs in 2006, which was 8.6 percent of non-farm employment. Government excluding education is mostly, although not entirely, jobs in public administration for the federal, state, and local government. Public administration includes office work for executive offices, legislative bodies, and judicial and corrections administration. Jobs for parks and recreation, museums, social services, public health and other things besides office work go into the total that equals 11.757 million jobs.

Government Service, excluding education has slow job growth from the forecast table with a yearly average growth in jobs of .54 percent. Check the forecast table to calculate 1.711 million new jobs, which is the difference of 12.493 million jobs in 2014 and 10.782 million jobs in 1990. If job growth in government service, excluding education equaled the rate of growth for non-farm jobs there would be 2.378 million new jobs instead of 1.711 million. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of government service, excluding education jobs. Government Service, excluding education needed 667 thousand more new jobs to keep its share of non-farm employment. back

9) Management of Enterprises

Management of Enterprises had 1.809 million jobs in 2006, which was 1.3 percent of non-farm employment. Defining a management sector results from the emphasis on reporting data and information at the establishment level. A firm can have many establishments scattered around at different locations where some establishments within the larger firm might be just head offices or administrative offices. Other establishments might be doing the firm’s productive work with some management, but establishments primarily engaged in managing get their own sector. Over 90 percent of employment in this sector is in establishments that only administer, oversee or manage other establishments, or do the administrative work for establishments that actually do something like manufacture products or provide services. The remaining few percent of jobs in this sector are at holding companies that own the stocks of one or more other companies in order to control them.

Management of Enterprises has slow job growth from the forecast table with a yearly average growth in jobs of .51 percent. Check the forecast table to calculate 176 thousand new jobs, which is the difference of 1.843 million jobs in 2014 and 1.667 million jobs in 1990. If job growth in management of enterprises equaled the rate of growth for non-farm jobs there would be 632 thousand new jobs instead of 176 thousand. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of management of enterprises jobs. Management of Enterprises needed 457 thousand more new jobs to keep its share of non-farm employment. back

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Negative Labor Growth Rates

1) Natural Resources

Establishments in natural resources had 684 thousand jobs in 2006, down from 765 thousand in 1990. Natural resources includes logging and mining, where mining operations have oil and gas extraction, coal mining, metallic and nonmetallic ore mining. Establishments with jobs that provide support activities go here. Natural resources have only .5 percent of non-farm establishment employment in 2006.

Natural resources have job declines and negative growth from the forecast table with a yearly average rate of decline in jobs of -.69 percent. Check the forecast table to calculate a decline of 209 thousand jobs, which is the difference of 556 thousand jobs in 2014 and 765 thousand jobs in 1990. If job growth in natural resources equaled the rate of growth for non-farm jobs there would be 290 thousand new jobs instead of a decline of 209 thousand old jobs. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of natural resources jobs. Natural resources needed 499 thousand new jobs to keep its share of non-farm employment. back

2) Manufacturing

Establishments in manufacturing had 14.201 million jobs in 2006, which is 10.4 percent of non-farm establishment employment. Manufacturing in the North American Industry Classification System has establishments that do mechanical, physical, or chemical transformation of materials, substances or components into new products. Transform can be with power driven machinery or hand equipment. Those employed by the manufacturing establishment to do selling are also included. Materials, substances, or components transformed can be raw materials of agriculture, forestry, fishing, mining, quarrying or the products of other manufacturers. Manufacturing is sub divided into 21 sub sectors based on the production equipment, processes of production and job skills with 10 of these sub sectors in durable goods and 11 in non-durable goods. Durable goods generally have a life expectancy of longer than one year.

Manufacturing has job declines and negative growth from the forecast table with a yearly average rate of decline in jobs of -1.37 percent. Check the forecast table to calculate the decline of 4.394 million jobs, which is the difference of 13.301 million jobs in 2014 and 17.695 million jobs in 1990. If job growth in manufacturing equaled the rate of growth for non-farm jobs there would be 6.710 million new jobs instead of a decline 4.394 million old jobs. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of manufacturing jobs. Manufacturing needed 11.105 million new jobs to keep its share of non-farm employment. back

3) Utilities

Utility services has 2006 employment of 548 thousand, which is .4 percent of non-farm employment and down from 740 thousand in 1990. In the North American Industry Classification utility services includes electricity, natural gas, water and sewerage services. Electricity includes generation, transmission and distribution, but natural gas is just distribution and resale. Water and sewer systems can also include treatment and irrigation. Electricity employment makes up over 70 percent of this total, about 20 percent in natural gas and just fewer than 10 percent for water and sewers. It does not include waste removal services. They are included in administrative and support services.

Utility services have job declines and negative growth from the forecast table with a yearly average rate of decline in jobs of -1.86 percent. Check the forecast table to calculate a decline of 224 thousand jobs, which is the difference of 516 thousand jobs in 2014 and 740 thousand jobs in 1990. If job growth in utility services equaled the rate of growth for non-farm jobs from 1990 to 2014 there would be 281 thousand new jobs instead of a loss of 224 thousand old jobs. Taking the difference equals the number of new jobs required to prevent a percentage decrease in the share of utility services jobs. Utility services needed 505 thousand new jobs to keep its share of non-farm employment. back

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Service jobs - Administrative and Support

Administrative and Support and Waste Management and Remediation Services (revised fall 2024)

This sector has two parts: the administrative and support part and the waste management and remediation part. Together they are 9.457 million jobs by 2024. Employment in the first nearly doubled from 1990 to 2007 reaching 8.067 million in 2007, but dropped during the 2008-2010 recession to a low of 6.857 million. Employment has recovered until the 2024 high. The waste management and remediation remains small but with steady job growth from 1990 when employment was 229.4 thousand jobs to the beginning of 2024 when employment reached 500.2 thousand jobs.  

Administrative and Support

In the NAICS documentation manual, administrative and support firms perform routine support activities for day-to-day operations of other businesses on a contract or fee basis. The definition does not tell us what companies in this sector actually do. The answer is lots of things. If I were going to work in this sector I would definitely pick a job in a travel agency. I can picture myself relaxing in a cheery office full of travel posters offering a witty patter of conversation describing sunny Caribbean tour sites. Pick your favorite! There are so many choices. Try a job in contracted office administration, facilities support services, employment placement, temporary help services, desktop publishing, word processing, telephone call centers, telephone answering services, telemarketing bureaus, copy centers, private mail centers, collection agencies, credit bureaus, repossession companies, court reporter companies, tour operators, convention bureau services, ticket services, investigation services, armored car services, security guards and patrol services, security systems companies, exterminating companies, pest control companies, janitorial service companies, landscaping companies, carpet and upholstery cleaning services, chimney sweep companies, packaging and labeling services, convention and trade show organizers, and a few more, but I am out of breath.

Administrative and Support establishments sell almost everything they do to other establishments on a contract or fee basis and not to final consumers, and they generally sell a combination of one or more support services. Travel agencies and some travel and tour companies are the only exception. Otherwise services in this sub sector support other firms by performing contracted activities with performance criteria carried out during a contract period. Establishment managers who are thinking of out-sourcing a function like office administration are thinking of another firm taking over complicated and distracting financial planning, billing, record keeping or logistics that are not a part of their real business. Having a firm concentrate on a core business is a favorite selling point in outsourcing firms, an industry where outsource firms actively promote outsourcing as a good idea. Selling outsourcing to prospective clients requires a combination of convenience and cost saving.

Outsourcing of work from one establishment to another had 4.416 million jobs in 1990.  By 2007 outsourcing jobs jumped to just over 8 million, but took a sharp drop of 1.2 million jobs in the recession years of 2008 to 2010. Jobs recovered after the recession and have continued to grow, reaching 8.956 million by 2024.

Outsourcing office administration services continues to increase and reached an all time high of 620.4 thousand jobs by 2024. Establishments that outsource facilities support service provide operating staff to perform a combination of building services such as janitorial services, laundry, maintenance, security, and landscaping. Employment in facilities support services, although fewer than office administration, continue to growth and reached a high of 169.3 thousand jobs by 2024. Other business support services include document preparation service, telephone call centers and answering services, telemarketing bureaus, business service centers, collection agencies and a few more. These jobs combined reached a high of 912 thousand in 2016 but have settled back to 744 thousand by 2024.

Travel agencies and reservations services had more jobs in 1990 than in 2024 when they were 190.8 thousand. Investigation and security services have increased from 207.5 thousand in 1990 and just topped the 1 million job mark at the end of 2023. Outsourcing services to buildings has also been a source of job growth. Janitorial services have the most jobs in services to buildings. It topped a million jobs in 2013 and has remained above a million jobs since then. Landscaping service jobs at establishments have grown from just below 300 thousand in 1990 to 886.6 thousand by 2024: exterminating services, carpet cleaning services and a variety of building maintenance services to building exteriors, chimneys, ducts, drains, gutters, driveways and parking lots. Combined jobs in building services have more than doubled since 1990 to 2024 when jobs total 2.251 million, at annual growth rates more than double that for national establishment employment.

Employment services have almost 39 percent of the jobs in business support services. Employment service jobs have three sub sectors: employment placement agencies, temporary help services, and professional employer organizations. Their job total at the beginning of 2024 was 3.640 million. While all the business support services rise and fall in response to recession and recovery they show a general trend upward over the years since 1990. 

The NAICS manual explains that employment placement services list employment vacancies and refer applicants. Temporary help establishments supply their employees to supplement the work force of a client, but the client must supervise their work. Professional employer organizations “typically acquire and lease back some or all of the employees of their clients and serve as the employer of the leased employees for payroll, benefits, and related purposes.” 

A system of outsourcing employment generates a cycle of bidding for contracts for landscaping, security services, janitorial services and also with temporary help services by bidding directly for available work. Custodians, for example, work for contracting firms that constantly bid new contracts. Contracts tend to be one to three years, but allow cancellation on 30 days notice. It is labor intensive work. Seventy five to eighty percent of total costs come from wage costs and the contractor with the low bid is likely to be the one that pays the lowest wage. The more rapid adjustment of labor to the ebb and tide of business may save business costs, but much of the savings appears to be more from lower wages and higher unemployment costs for both workers and the government than to productivity changes for outsourced work.

Waste Management and Remediation Services

The second part of this sector is simple. It is trash. We can be confidant people at waste management firms are not talkin’ trash, but otherwise they are collecting, hauling and dumping trash. Some of the trash is ordinary trash and some of the trash is hazardous trash. Firms also do trash disposal or trash disposal with treatment. Disposal is storing trash in a landfill, or burning trash in a combustor, or incinerator. Treatment is remediation, which is sorting for recycling, or cleanup of contaminated sites, soil or groundwater. Establishments in this sub sector do septic pumping or rent portable toilets. Employment in waste management and remediation services has continued to grow at an annual rate of 2.39 percent since 1990, a rate more than double the national establishment average. The employed first topped 300 thousand in 1999, topped 400 thousand in 2016 and passed 500 thousand in 2023.

The occupations here tend to be outdoors and involve some measure of physical labor as defined in the Standard Occupational Classification. They are materials moving workers including their supervisors that make up a little over 28.3 percent of jobs. Almost 19.3 percent of jobs are classified as motor vehicle operators including their supervisors. Occupations in office administration have a little over 10 percent of jobs; management and finance occupations have a little under 10 percent of the jobs. Outside of management few jobs need college degree training.

With a 134.453 million service jobs to divvy up, administrative support and waste management and remediation services employment gives us 9.457 million jobs, but that is only 6.1 percent of establishment employment.  Administrative support and waste management and remediation service employment has growth rates higher than the national rate. We have to expect a relative increase in administrative support and waste management in national employment. We only have 4 sectors left to go, but 28.177 million service jobs left to fill.

Wednesday, December 12, 2007

Service Jobs - Trade and Rental Leasing

Trade and Rental and Leasing Services (revised fall 2024)

Retail trade, wholesale trade and rental and leasing services are defined separately in NAICS (North American Industrial Classification System) with data reported in their own sub sector. Retail establishments sell goods to final consumers. Wholesale establishments sell or arrange the sale of goods for resale, or sell or arrange the sale of raw materials or production supplies and equipment. Rental establishments rent or lease cars, trucks, RV’s, appliances, formal ware, costume ware, videos, health equipment, commercial machinery or industrial equipment, or just about anything you can imagine.

Combined jobs for the three services equal 22.292 million by 2024 a combination of jobs as big as all government service. Retail has 15.590 million jobs spread among 9 sub sectors; Wholesale trade has 6.116 million jobs in three sub sectors. Jobs in rental and leasing are 585.9 thousand with automobile, truck and RV rentals accounting for 227.6 thousand of those jobs. Combined wholesale and retail trade have growing employment but at a 33 year growth rate of .50 percent, below the 1.08 percent rate for total employment, which causes a decreasing percentage of wholesale and retail jobs in total employment. Using computer technology in trade, especially for barcodes and inventory management increases labor productivity. Retail and wholesale sales volumes per work hour are up and sometimes at rates comparable to productivity in manufacturing. Higher productivity in trade limits job growth, but so far not enough to decrease employment like it has in manufacturing.

Job growth and productivity depends on the type of service. Jobs at gasoline stations and convenience stores have increased modestly since 1990 with 982 thousand jobs by 2024. Food and beverage store employment, which is just over 87 percent grocery store employment; specialty food retailers like fruit and vegetable stores, fish mongers, and beer, wine and liquor stores have the remaining jobs  Jobs have leveled off at 3.238 million, but up from 1990 when they were 2.878 million. Salesmanship has limited success in the grocery business

At furniture stores, electronics stores and clothing stores sales depend more on salesmanship. Explaining and selling take time and so more jobs are needed at furniture stores, electronic stores, and clothing stores. Buyers may need to learn about available products and how they work, or the different product brands, or be told something fits right and looks great before they make up their mind. However, jobs at furniture and home furnishings retailers and electronics and appliance retailers peaked around 2000 and then began a slow but steady decline. Jobs here totaled 1.215 million in 2000, but only 848.3 thousand by 2024.

Some of the fastest retail job growth is coming at warehouse clubs and super centers and in used goods: thrift shops, consignment stores, Goodwill, the Salvation Army and flea markets. Employment at warehouse clubs and super centers is growing much faster than jobs at more specialized retail stores. In addition to job declines in home furnishings and appliance stores, jobs at clothing stores, paint stores, hardware stores also show job declines. Job growth data suggests warehouse clubs and super centers are replacing smaller more specialized retail.

Growth in jobs selling used goods continued during the recession that raised used goods employment to 204.9 thousand jobs at an annual growth rate of 3.82 percent. Job growth at used car dealers averaged 3.22 percent a year since 1990 but only .54 percent at new car dealers, although new car dealers continue to have much larger employment.

Retail sales on main street or at the mall or shopping center support local employment because people do not drive long distances to shop. Even though many shop while traveling or on vacation, shopping at stores away from home has minimal effect on retail employment. By the beginning of 2024 retail jobs have 9.99 percent of national establishment employment. In 1990 monthly retail employment averaged 12 percent of establishment employment. The low was 10.02 percent in 1956; the high was 12.21 percent in 1986, but now its 9.99 percent. Change comes slowly.

Employment data by state or metropolitan area tells the same story. The percent of retail jobs by state cluster tightly around the national average percent and the percent variation above and below that total is relatively small compared to other sub sectors. The best bet to forecast retail employment for a state is to take 9.99 percent of total establishment employment. Because retail jobs remain at roughly the same percentage of total employment the only way to have more retailing jobs is to have a bigger population to serve. For anyone in local government or the Chamber of Commerce who wants to boast local employment by luring in a big national retailer, the plan will not work. Before much time goes by the new retailer displaces existing retail jobs and its back to the national average percent.

The Bureau of Labor Statistics reports 2.467 million wholesale and retail jobs need college degree skills out of 22.292 million jobs, or 11.1 percent of total employment. Not many jobs outside of management need college degree skills but there are a few. In wholesale trade sales representatives for scientific and technical products and sales engineers requires BA degree skills in the BLS skills designations. Sales Engineer, also known as manufacturer’s agent, often requires an engineering degree to explain and sell a particular technical product or line of products. Sales representatives for technical products had almost 176.6 thousand jobs at the beginning of 2024, sales engineers another 15 thousand.

In retail, 54 percent of pharmacists work in retail establishments, about 178.7 thousand jobs from drug stores to grocery stores. Optometrists have 5.5 thousand jobs in retail as part of selling glasses in combination with opticians, but almost 90 percent of these jobs go in the health care industry. Trade also has 145 thousand jobs in design: floral design, interior design, graphic design, and merchandise displayers.

Retail trade employs 89.5 percent of 3.685 million jobs as retail salesperson, which also has more jobs than any other American occupation; Another 1.088 million jobs are first line supervisors of sales workers who manage area sales workers with 965.8 thousand of their jobs in trade. Cashier holds second place with 3.299 million jobs and over 83.5 percent of those in trade. Cashiers jobs are not the same as retail salespersons. Cashiers run a cash register, take money and make change but they seldom do selling as the term describes the work of retail salesperson.

Electronic shopping over the Internet continues to grow at a rapid pace. Electronic shopping has the potential to break the link between retail jobs and the population it serves. To discourage electronic shopping mall designers and owners make sure malls have more than shopping; they have restaurants, fountains, benches, movie theatres, ice rinks and health clubs. Making shopping a pleasant social experience apparently works because there is little sign of any big change in America’s shopping habits.

Until 2021 the Bureau of Labor Statistics maintained establishment employment in a category defined as non-store retailers, which was almost entirely Internet shopping from establishments without stores, a.k.a. brick and mortar locations. However, the distinction between store and non-store retailers began to blur as more and more brick and mortar stores began to offer online sales and online retailers opened brick and mortar stores. After 2021 the Bureau of Labor Statistics dropped the non-store data series and returned to reporting data by categories determined by the products establishments carried and sold.  As America takes up electronic shopping in a bigger way more people will pay a visit to the unemployment office. Electronic shopping establishments need a higher percentage of customer service representatives, but fewer retail salespersons. Retail sales person reached an employment high of 4.613 million in 2015, but only 3.685 million in 2023. Talking and selling creates the jobs and there is not much talking on the Internet.

With a 134.453 million service jobs to divvy up, trade services and rental and leasing services gives us 22.292 million jobs, which is the biggest share of jobs at 19.4 percent of establishment employment.  Combining retail, wholesale, and rental and leasing jobs amounts to the jobs that support America’s shopping. Unfortunately, they have slow growth of .5 percent a year for the past 33 years. These services are unique among services because they have such a high share of jobs, but their slow growth guarantees they will decline as a share of U.S. employment. America shops, but not enough to keep America employed.  Americans must buy more services. We have 37.634 million service jobs left to fill. Give us service.

 


Monday, December 10, 2007

Service Jobs - Arts

Arts, Entertainment and Recreation Services (revised fall 2024)

The arts, entertainment and recreation sector has firms and establishments producing and selling fun. There are three categories of fun.  In the first category, fun seekers are spectators who go to watch art and entertainment put on by theatre and dance companies, orchestras, music groups, sports teams, sports promoters, racetracks, and independent artists, writers, or performers. In the second category fun seekers are lookers who go to look at art and entertainment in museums, zoos, nature parks, botanical gardens and historical sites. The emphasis in both of these categories is on live art and entertainment.

In the third category fun seekers go to participate in recreation at amusement parks, arcades, gambling casinos, golf courses, ski resorts, marinas, fitness centers, sports centers, ice rinks, swimming pools, bowling alleys, billiard parlors, day camps, riding stables and a few more.

Possibly the people lifting weights and sweating out in fitness centers are not having fun, but otherwise the 2.518 million people employed here are producing fun, lots of fun. The arts and entertainment parts have 748.2 thousand jobs as of 2024.  Recreation jobs total 1.770 million, almost 70 percent of the jobs.

Among the participate jobs, fitness and recreation centers have the most jobs, 626.7 thousand, less than the 2019 pre-pandemic high of 661.4 thousand jobs. Jobs were only 274.7 thousand in 1990, but job growth here has been consistently high with an annual average growth of  2.58 percent for 33 years. These jobs make up an increasing share of total establishment employment. Golf courses are next with 406.8 thousand jobs, up from 159.3 thousand since 1990. All other amusements and  recreation are growing except employment at bowling alleys with 68.9 thousand jobs and employment in gambling casinos jumped from 33.7 thousand in 1990 to a high of 143.7 thousand jobs in 2007 but down from that high to 116.9 thousand jobs by 2024. Another 239.5 thousand work at casino hotels, which brings gambling employment to 387.3 thousand jobs by 2024.

The occupations in this sub sector have skills learned through practice and experience more than classroom education: athletes, actors, dancers, singers and musicians, for example. Nothing prevents any of the people holding these jobs from attending college but the emphasis is on specialized skills developed from long-term on the job training. A little over 16 percent of the jobs in arts, entertainment and recreation occupations, come in occupations that need college degrees in the Bureau of Labor Statistics skills taxonomy. The college degree total as of 2023 has 411.1 thousand of the 2.518 million job total in arts, entertainment and recreation. These occupations come mostly in management, finance and computing, but 130.1 thousand of arts, entertainment and recreation occupations qualify as college degree occupations.

All three of art, entertainment and recreation sub sectors have a variety of specialty occupations. In recreation, gambling has eight gaming occupations including gaming manager and first line supervisor of gambling service workers, gaming dealers, sports book writers and runners, gambling surveillance workers and gambling investigators, gambling change persons and booth cashiers, gambling cage workers, and gaming service workers, all other with 57.7 thousand jobs in the recreation sub sector and almost 171.6 thousand more mostly at casino hotels. Bureau of Labor Statistics discussion of gambling occupations warns their readers to be careful before thinking gambling jobs are “glamorous” jobs. Sure the “fun filled” atmosphere generates excitement, but work is long hours standing and there is noise from gambling machines and tobacco smoke from agitated gamblers. 

Exercise trainers and group fitness instructors alone have more jobs than gambling occupations with 199.5 thousand these jobs in the recreation sub sector out of 279.5 thousand jobs in the whole economy. Diet and exercise are now regular business transactions and a source of employment, even though both are very much do-it-yourself services. People can walk in a park or walk on a treadmill; one is free, one is not. People can eat less or pay for pills, powders, supplements, diet books, diet plans, counseling and weight watchers.

Art, design and entertainment occupations have entertainers, performers, coaches and athletes working in 184.8 thousand jobs, although many of these jobs are also in the film, recording and broadcasting industries. Jobs include producers and directors, actors, musicians and singers, dancers and choreographers. Art and Entertainment has almost all the jobs as professional athletes, but only 73.5 thousand jobs out of a total of 253.8 thousand jobs as coaches, scouts, umpires, referees and officials. A majority of coaches are paid positions at many schools and colleges where athletes are not considered employed.

Zoos and racetracks are part of art and entertainment where there are about 23.8 thousand jobs as animal trainer and animal care taker. Work in entertainment related occupations like ushers, lobby attendants, ticket takers, and locker room, coatroom, and dressing room attendants creates 43.3 thousand jobs. Nearly 25 thousand tour and travel guides work at museums and historic sites out of 46.7 thousand working in the entire economy.

With a 134.453 million jobs to divvy up art, entertainment and recreation employment gives us 2.518 million jobs and that is 1.61 percent of establishment employment, u .58 percent since 1990.  Arts, entertainment and recreation made steady job gains in the 1990’s, but did poorly in the 2002 and 2008-2010 recessions, but finished the 2000-2024 period with a gain of 730 thousand jobs. Job gains in good years tend to be offset by zero or negative gains in the bad years with the result that average job growth in this sub sector is too small to help much with America’s job requirements. In the United States where a job is a requirement America needs a steady flow of new jobs to meet its requirement, but there are only 59.926 million jobs left to fill. We still need service!