Article04

November 2001
EMPLOYMENT OPPORTUNITY NEWS SERVICE

EOS LINKS

Since industry employment trends reflect the staffing needs of business,
changes in employment by industry offer a valuable barometer of employer
hiring needs. For example, over the past 60 years, manufacturing’s share
of U.S. non-farm jobs fell from over 33 percent to less than 15 percent of
the total. This long-term decline has been due to productivity gains,
outsourcing of services, outsourcing of production overseas, and just-in-time
production (see November 1999 edition).

While the employment share of manufacturing has declined, employment in
the nation’s service sector increased, from 11 percent to 30 percent. In fact,
service jobs grew from just one-third of manufacturing’s share in 1939 to
twice manufacturing’s share in 1999. These service industries accounted for
most of the increase:

Temporary help agencies (from 213,500 in 1972 to 3.6 million in 1999)
Computer services (from 106,700 in 1972 to 1.8 million in 1999)
Medical services outside hospitals (from 1.4 million in 1972 to 6.0 million
in 1999)
Social services – day care and residential care – (from 553,000 in 1972 to
2.8 million in 1999)

Growth of these service industries, plus rapid hiring by retail eating and drinking
places (from 2.9 million in 1972 to 7.9 million in 1999), substantially offset the
manufacturing decline. At the same time, these industry employment trends
resulted in reduced employment for laborers, private household workers, and
operative occupations while boosting occupational employment for professional
and technical workers, service worker occupations, and clerical and kindred workers.

From June 2000 through June 2001, total industry employment was fairly static,
rising just 0.3 percent. The table below identifies some of the industries that
experienced employment growth over that period, and some that reduced their
workforce.

Industries with Recent Gains in Employment Increase by Percent Industries with Recent Declines in Employment Decrease by Percent

Oil & gas extraction 9.0 Leather & leather products -11.2

Computer & data processing 5.7 Apparel & textiles -10.2

Child day care 5.5 Help supply services -9.9

Residential care 5.1 Motor vehicles -9.0

Agricultural services 5.0 Electrical equipment -5.5

Engineering & architecture 4.1 Fabricated metal products -4.0

Communications 3.4 Printing & publishing -3.5

Management/PR 3.4

Although some employers buck their industry’s employment trends, most
follow the overall direction. Be sure to consider this information when your
career and job search decisions are being made.

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