Americans who
expect to see a wide array of new jobs on the horizon may be in for a surprise.
Not only are traditional full-time jobs scarcer these days -- a combination of technological
automation and corporate thrift -- but they also aren’t what they used to be. Companies
are less inclined to offer full-time jobs because they are more expensive and
impede organizations’ abilities to scale up or down depending on market
factors.1
In fact, two
economists recently analyzed data and discovered that “all of the net
employment growth in the U.S. over the past decade came from alternative work
arrangements, not full-time jobs.” Today, 20 to 30 percent of adults work on an
independent or contract basis.2
Historically,
job creation has been a good indicator of growth industries and, therefore, one
component used to assess investment opportunities. As an independent financial
services firm, we’re here to help you analyze your personal financial situation
and create strategies utilizing a variety of investment and insurance products
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discuss this with you further.
A recent
study found that, in 2017, the states with the most positive employment outlooks
are Oregon (25 percent), Hawaii (23 percent), Florida (21 percent), Iowa (20
percent), and, tying for fifth place, California and Oklahoma (18 percent each).
Industries that have increased hiring in recent months include wholesale and
retail trade, transportation and utilities, and professional services.3
North
Carolina is one state that has lost a significant number of jobs -- 2.2 million
since 2010 -- largely in the textile and furniture manufacturing sectors. Unfortunately,
as the large population of business-owning baby boomers start picturing retirement
in their near future, the potential exists for many more jobs to fall by the
wayside. One economic analyst has embarked on a campaign to promote employee
ownership of small businesses to help ensure their continuation and economic
growth after the owner(s) retire.4
The retail
industry also is seeing its share of job reductions due to the prevalence of
online purchasing, rendering many long-time merchants left out on the
brick-and-mortar sidewalk. For example, despite the fact that the toy industry
is booming -- annual U.S. toy sales grew 5 percent in 2016 and are estimated at
$26 billion -- retail giant Toys R Us recently laid off between 10 and 15
percent of its corporate employees.5
Another
employment sector that isn’t likely to materialize at the rate expected is coal
mining. Last year, the number of coal miners decreased by 24 percent compared
to 2015. On the other hand, there is an increase in job opportunities in
renewable energy sources, such as solar and wind power. In fact, in recent
years the Bureau of Labor Statistics has pronounced “wind turbine service
technician” to be America’s fastest-growing occupation.6
Content prepared by Kara Stefan Communications
1 Diane Mulcahy. Harvard Business
Review. Oct. 20, 2016. “Why I Tell My MBA Students to Stop Looking for a Job and
Join the Gig Economy.” https://hbr.org/2016/10/why-i-tell-my-mba-students-to-stop-looking-for-a-job-and-join-the-gig-economy.
Accessed Feb. 21, 2017.
2 Ibid.
3 Karsten Strauss. Forbes. Dec.
13, 2016. “Where The Jobs Will (And Won’t) be in 2017.” http://www.forbes.com/sites/karstenstrauss/2016/12/13/where-the-jobs-will-and-wont-be-in-2017/#1e9fa96d1a43.
Accessed Feb. 21, 2017.
4 Darren Dahl. Forbes. Feb. 21,
2017. “How North Carolina Can Save Jobs from the Coming Silver Tsunami.” http://www.forbes.com/sites/darrendahl/2017/02/21/how-north-carolina-can-save-jobs-from-the-coming-silver-tsunami/#616ef048463b.
Accessed Feb. 21, 2017.
5 Doreen McCallister. NPR. Feb.
21, 2017. “Toy Fair Shows Off What’s New as Toys R Us Cuts 250 Corporate Jobs.”
http://www.npr.org/sections/thetwo-way/2017/02/21/516368759/toy-fair-shows-off-whats-new-as-toys-r-us-cuts-250-corporate-jobs.
Accessed Feb. 21, 2017.
6 Erika Fry. Fortune. Feb. 21,
2017. “Sorry, Coal. Solar Is Where the Jobs Are.” http://fortune.com/2017/02/21/donald-trump-jobs-coal-mining-solar-energy/.
Accessed Feb. 21, 2017.
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