The service industry may be the first to regain jobs when the economy begins to bounce back.
According to an article by MSNBC, John Connaughton, regional economist and University of North Carolina-Charlotte professor, thinks that when the economy begins to gain traction again, service industry jobs will be the first to appear.
“Services make up a bigger part of what it is we buy as consumers,” he said in the article. “We buy more and more services and fewer and fewer stuff, goods. Professional services, architects, engineers, accountants, they are all in there. Medical care, hospitality industry, hotels, motels, conferences are service industry jobs.”
However, it will take a considerable amount of time for the economy to start to grow again, and layoffs are expected to continue in the financial and real estate industries throughout this year.
“One of the problems with recoveries is that in the early part of recovery we still lose jobs,” Connaughton continued. “When we spin the clock a little bit and start looking at 2010, it’s likely that we’ll see some job gains in finance, insurance and real estate.”
Connaughton predicts that while construction, one of the industries most affected by the recession, will be down this year, the industry may see some job gains.
“Not on the residential sector but on the non-residential side when the stimulus package starts to kick in,” he said.
Also, while the government industry should continue to add jobs, some of the manufacturing jobs lost may never come back.
“We are shipping some jobs overseas but actually that’s not the biggest part of it,” Connaughton added. “Manufacturing has become much more capital intensive, and much less labor intensive. They need fewer and fewer employees to produce the same amount or even more output.”
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