The long-term shift from goods-producing to service-producing employment is expected to continue. For example, service-producing industries-including transportation, communications, utilities; retail and wholesale trade; services; government; and finance, insurance, and real estate-are expected to account for millions of jobs. In addition, the services division which includes health, business, and educational services, contains 15 of the 20 fastest-growing industries.
Service-Producing Industries Are Increasingly Important
Is it not true that we are becoming a service economy? We already are one, and have been for some time. Projections indicate that nearly four out of five jobs will be in industries that provide services rather than in manufacturing. Expansion of service sector employment is linked to a number of factors, including changes in consumer tastes and preferences, legal and regulatory changes, advances in science and technology, and changes in the organization and management of businesses. Contrary to popular belief, many of these jobs pay well.
Many people think of a service economy as one in which the workforce is dominated by retail sales workers, restaurant workers, and cashiers. In reality the fastest-growing occupations will be those that require the most education. The two largest industries in this sector are health services and business services. Together, they account for about one-fourth of the total increase.
The Difference between the Service Industry and Service Workers
Many people get confused about the difference between the service industry and service workers and it is easy to understand why, because the terminology is so similar. Data is collected by type of establishment (or industry) as well as by type of occupation. For example, an accountant could work in auto manufacturing (a goods-producing industry) or a hospital (which does not produce goods and is, therefore, part of the service industry) -- Same occupation but different industries.
The government uses 12 clusters of related occupations, and accountant falls under one called "Executive, Administrative, and Managerial." One of those occupational clusters just happens to be called "Service Occupations," and it includes jobs such as kitchen workers, flight attendants, dental assistants, and preschool workers. So, if you worked in the cafeteria of a hospital, you would be a service worker in a service industry. Well, yes, this is a bit confusing.
Trends within the Services Industry
Services industry is both the largest and fastest-growing division within the service-producing sector. This division accounts for almost two-thirds of all new jobs. Jobs will be found in small firms and large corporations and in industries as diverse as hospitals, data processing, and management consulting. Health services and business services are projected to continue to grow very rapidly. In addition, social, legal, and engineering and management services industries further illustrate this sector's strong growth.
Health Services
Health services will continue to be one of the fastest-growing industries in the economy. Improvements in medical technology and a growing and aging population will increase the demand for health services. Employment in home health care services-the second fastest-growing industry in the economy-nursing homes, and offices and clinics of physicians and other health practitioners is projected to increase rapidly.
However, not all health industries will grow at the same rate. Despite being the largest health services industry, hospitals will grow more slowly than most other health services industries.
Business Services
Demand for jobs that provide services to businesses are expected to increase rapidly. These jobs include many that require advanced training, such as computer technicians and systems analysts, as well as those requiring minimal training, such as janitors. Jobs in accounting, marketing, engineering, finance, truck driving, and many others providing services to businesses are expected to increase.
Business services industries also will generate many jobs. Employment is expected to grow. Personnel supply services, composed primarily of temporary help agencies, is the largest sector in this group and will increase by 57 percent. However, due to a slowdown in labor force participation by young women and the proliferation of personnel supply firms in recent years, this industry will grow more slowly compare to the past growth.
Business services sector also includes one of the fastest-growing industries in the economy: computer, and data processing. This industry's rapid growth stems from advances in technology, worldwide trends toward office and factory automation, and increases in demand from business firms, government agencies, and individuals.
Education
Education is expected to grow and the growth reflects population growth and, in turn, rising enrollments projected for elementary, secondary, and postsecondary schools. Not all of the increase in employment in education, however, will be for teachers: Jobs for teacher aides, counselors, administrative staff are also projected to increase.
Social Services
Employment in social services is expected to increase reflecting the growing elderly population. For example, residential care institutions, which provide around-the-clock assistance to older people and others who have limited ability for self-care, is projected to be the fastest-growing industry in the U.S. economy. Other social services industries that are projected to grow rapidly include child daycare services and individual and miscellaneous so services, which include elderly daycare and family social service.
Wholesale and Retail Trade
Employment in wholesale and retail trade is expected to grow by 19 and 23 percent, respectively. The fastest projected job growth in retail trade is in apparel and accessory stores, and appliances, radio, television, and music stores.
Substantial increases in retail employment are anticipated in large industries, including eating and drinking establishments, grocery stores, automotive dealers and service stations, and general merchandise stores.
Finance, Insurance, and Real Estate
Employment is expected to increase by 21 percent in finance, insurance and real estate industries. The strong demand for financial services is expected to continue. Bank mergers, consolidations, and closings resulting in overexpansion and competition from nonbank corporations which offer bank-like services are expected to limit job growth among commercial banks and savings and loan associations. The fastest growing industries within this sector are expected to be holding and investment offices and mortgage bankers and brokers. Insurance agents, brokers, and services are expected to register the largest increases in jobs.
Transportation, Communications, and Public Utilities
Overall employment in transportation, communications, and public utilities sectors will increase. Employment in the transportation sector is expected increase by 24 percent. Truck transportation will account for 50 percent of all new jobs and air transportation will account for 29 percent. The projected gains in transportation jobs reflect the continued shift from rail to road freight transportation, rising personal incomes, and growth in foreign trade.
Employment in communications is projected to decline due to labor-saving technology and industry competition. Employment in utilities, however, is expected to grow driven by strong growth in water supply and military services.
Government
Government employment, excluding public education and public hospitals, is expected to increase by 10 percent. The growth will occur at state and federal government levels only. Employment in the federal government and U.S. Postal Service is expected to decline.
Goods-Producing Industries
While there are more jobs in the services industries, the goods-producing industries remain an important part of our labor market. Many service-industry jobs, for example, provide support to or benefit from employment and income produced by the goods-producing sector of our economy.
Construction
Construction is expected to increase by 26 percent. The need to improve the nation's infrastructure will result in increases in road, bridge, and tunnel construction. This will offset the decrease in demand for new housing reflects the slowdown in population growth and the overextension of office building construction in recent years.
Agriculture, Forestry, and Fishing
After declining for many decades, overall employment in agriculture, forestry, and fishing is projected to grow by 14 percent. Strong growth in agricultural services will more than offset an expected continued decline in crops, livestock, and livestock products.
Manufacturing
Manufacturing jobs are expected to decline by 3 percent. The projected loss of manufacturing jobs reflects productivity gains achieved from increased investment in manufacturing technologies. The composition of manufacturing employment is expected to shift because most of the jobs that will disappear are production jobs. On the other hand, the number of professional positions in manufacturing firms will increase.
Mining
Mining employment is expected to decline 11 percent. Underlying this projection is the assumption that domestic oil production will drop and oil imports will rise, reducing employment in the crude petroleum industry. In addition, employment in coal mining should continue to decline sharply due to the expanded use of labor-saving machinery.
After having said all this, it is important to tell you that you need to keep one thing in your mind at all times: To succeed in today's labor market you will need to spend more time on career planning and preparation.
Those who spend this extra time are more likely to do better in the labor market-and are more likely to find satisfying careers. Good career planning includes more than just picking a job. It includes knowing what you want to accomplish, knowing which skills you enjoy using most, seeking a work environment that is satisfying to you, and finding work that is meaningful to you.
