The recession has forced the loss of more than 7 million jobs, doubling the unemployment rate and crippling 10% of the workforce. While some of those positions will return as the recession lifts, here are five sectors where experts predict a lot of the jobs will not be coming back:
- Manufacturing: While manufacturing has represented a major part of the U.S. workforce in the past, automation and several other factors have caused the consistent decline of that sector since 1997 (the last year the industry posted job gains). The demise of manufacturing means a major slice of the U.S. workforce will need to look elsewhere for employment, regardless of how (and when) the economy bounces back.
- Construction: A lot of construction projects were halted or scrapped as a result of the recession. While construction will always rely on manpower to some extent, the industry has shed well over a million jobs over the past year. Chances are a lot of the roles that have been combined with others or automated as a result of cutting corners will not be made available again any time soon.
- Finance: A lot of the jobs in the financial sector were related to mortgage securities and credit, two areas that have come under major scrutiny as a result of the recession. In fact, finance has shed nearly 7% of its jobs as a result of the recession. With finance being regulated so tightly these days, most experts predict a lot of those jobs will not return, although they don’t rule out the possibility finance will diversify into other markets.
- Administrative: So many office processes have become automated these days that once the recession hit, administrative positions and clerks were often the first to go. While the cuts were originally sold as a cost-cutting measure, the advent of e-mail, automated attendants, cell phones and voicemail (among other advances), makes it highly unlikely companies will return to the way things were.
- General labor: Record stores are falling by the wayside, as are a lot of video stores, mail list providers, and mom-and-pop shops. While some small businesses have simply been gobbled up or trampled by large corporations, there’s a whole other side of the consumer market that’s falling victim to online sales, home delivery, and automated processes.
Are there any sectors we missed here? Is there any way for these sectors to bounce back or reinvent themselves? Feel free to share your thoughts in the comments section below.
Source: “Even in a Recovery, Some Jobs Won’t Return,” by Justin Lahart, The Wall Street Journal, 1/12/10
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Tags: economy, jobs, marketplace, Recession, unemployment
February 5th, 2010 at 9:12 am
OF THE 5 AREA’S WHAT ELSE IS THERE. LEGAL & MEDICAL ARE SERVICES. WE MUST PRODUCE PRODUCT CONSTRUCTION & INDUSTRIAL OR OUR WAY OF LIFE IS GONE. WE’RE SURVIVING ON OLD MONEY RIGHT NOW & IT’S RUNNING OUT.
February 12th, 2010 at 12:25 pm
A lot of technical jobs have gone overseas. A lot of jobs, period, have been moved to other countries. If we keep shedding jobs and relocating them to other countries at the same rate we have been in the past, no industry will be untouched. The food industry, entertainment industry, clothing industry, among many others, are feeling the impact of all the layoffs in the industries listed above. People without jobs don’t seek medical care, don’t go out to eat, don’t watch movies or buy books or CD’s or TV’s or clothes or furniture. They don’t pay their mortgages after a certain point, so the tax base is reduced and city governments feel the impact. As a result, services are then reduced to cut costs, so the city workers and firefighters and police forces have a layoff. We are in a downward spiral, all because so many (too many) of our jobs have moved overseas and now we don’t have enough work to support our population. Investors continue to take the easy way out (moving jobs) instead of finding ways to do the work here more efficiently and at a lower cost…largely because they want a fast return on their investment and big profits. Before long, Americans are going to have to move to another country to find employment. I know people who have done this already. But no one seems to be taking it seriously or doing anything about this massive problem. Maybe I’m just pessimistic, but it worries and frightens me.
February 15th, 2010 at 3:18 pm
I AGREE WITH WHAT THE OTHERS HAVE SAID – & SAID SO WELL. ALL OF US in this country need to change our attitude & work on what’s good for ALL of us and for our country – & those in power and those with the big money need to realize that, if they don’t do their part, they may not like living and their children & grandchildren living in what our country could become. . .