Job Seekers' Glimpse Into the Crystal Ball
The past two years have been nothing short of a disaster for the U.S. job market. Of the more than 15 million workers now scraping by without paychecks, nearly 4 in 10 have been unemployed for six months or more. Cyclical unemployment rises with downturns -- less demand means fewer workers needed -- but this time, some economists are warning about "structural unemployment," the possibility that the skills and ambitions of the jobless don't match the jobs that will be created in the recovery, so that many unemployed will struggle to find work even as the economy strengthens.
Although many of the highest-paying and most promising jobs require long slogs through school, about half of the 30 fastest-growing occupations require something less than a bachelor's degree -- from a two-year associate's degree to a brief on-the-job training stint. The hitch is, these jobs may not pay as much as the jobs they replace in, say, the manufacturing industry.
Forecasts and limitations. Between 2008 and 2018, the economy is expected to add more than 15 million jobs -- pushing total employment from 137 million to about 152 million.
The biggest gains in jobs will be in the healthcare and social assistance sector and in the professional and business services sector. Social assistance occupations such as home health aide and home care aide will boom as baby boomers age and require help at home with making dinner or taking medications. If the bad news is that the median income for home care aides is less than
Three areas of professional and business services should drive bigger payrolls: consulting, computer systems design, and employment services. Together, those fields are expected to add more than 2.1 million jobs by 2018. The number of jobs in the computer systems design field -- which includes software engineers and systems analysts -- is expected to climb 45 percent. These occupations did not prove recession-repellent, but consumer and business appetites for technology continue to build. (Consider that as of early January, more than 3 billion iPhone applications had been downloaded from the Apple store.)
One thing that's likely to continue: the loss of middle-skilled jobs that traditionally provided pretty good wages and required some education. Jobs for autoworkers, steelworkers, and clerical or administrative workers have increasingly gone the way of outsourcing or automation. As those jobs disappear, employment grows in low-skilled, low-paying jobs and in high-skilled, high-paying jobs. Neither occupational therapists nor janitors can be replaced by machines or outsourced to
Education roadblocks. Jobs for young workers who don't get a bachelor's may pay less than those that were once available to those without degrees. Tuition costs and dwindling financial aid resources have increased the disparity between the college-educated and the rest of the workforce, making college "an exclusive club of the very rich," according to
Some employment projections may look rosy because payrolls were low in 2008. Over the course of the recession, the construction industry lost 1.6 million jobs. Activities once integral to the economy -- putting up new homes and building shopping malls -- suddenly dropped off a cliff. Construction employment is now expected to grow faster than the rest of the job market, about 19 percent versus the 10 percent average. "Since they're starting from a lower base . . . we're going to see faster growth rates and more numerous job openings," Bartsch says. As the population grows and infrastructure ages, contractors will be back to work.
Some recessionary job losses were reflective of long-term trends. For one, the economic slowdown pressed fast-forward on the manufacturing industry contraction, and that downward slide isn't expected to change. "We are continuing to project manufacturing to decline," Bartsch says. "It has been declining for years, and it declined faster in the recession, and we expect that trend to continue."
The recession also slowed the exodus of baby boomers from various occupations. But you can bank on older workers eventually retiring from the workforce. "We know the population is aging, and that trend won't change," Bartsch says. That also means beefed-up demand for healthcare services, no matter what.
The government's financial sector forecasts are more optimistic than many economists' are.
For his part, Katz thinks it's difficult for anyone to accurately predict the future of the finance sector. "I think that's one where nobody has any clue," Katz says. "We know people need a place to live, but whether there's going to be as much of a market in exotic financial transactions and whether the U.S. will continue to be a global leader . . . my guess is that finance won't come back for a few years, but 2018 is a long way off."
A smaller financial sector would come as welcome news to many economists, who saw
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(c) 2010 Emily Brandon, U.S. News & World Report