The U.S. unemployment rate is holding steady at 10%. Here's the scary part: even as the economy begins to recover, the fear is that there could be a jobless recovery--economic indicators will stabilize, but people will still be out of work.
This is because the jobs lost since the beginning of the recession in December 2007 outweigh all the jobs created since 2000. A decade's worth of job creation/growth has been wiped out.
Job losses have hit some sectors particularly hard. Lost construction jobs alone account for one-fifth of total job losses. The unemployment rate for construction is 22.5%; farming, fishing and forestery unemployment is 21.8%; and production unemployment is 14.7%.
Some jobs, such as those in construction, may not be coming back. Construction jobs grew by leaps and bounds during the height of the housing bubble. Once the bubble popped, those jobs disappered. They aren't likely to come back because the growth didn't have any substance.
In other sectors, like administrative work and directory services, jobs were going to be lost even without the recession because their tasks are becoming automated. The recession sped up the job losses.
Even if the economy stops losing jobs, the unemployment rate won't necessarily go down.To fill these lost jobs, new jobs will have to be created. This is difficult to do and takes time.
If you find yourself unemployed or in a shrinking job sector, check out the Bureau of Labor Statistics' (BLS) projected job growth table. Look for a job sector with expected growth and consider getting education or training to make a job switch.
Jobs aren't going to create themselves. As a country and as individuals we have the opportunity to take this recession and make it a positive. Perhaps it will provide the spark we need to start producing more and consuming less. Our economy's last two booms were based on widespread speculation and ill-advised investment. The dotcom bubble from 2000 to 2002 was based on nothing more than pipe dreams. The housing bubble began about the same time the dotcom bubble burst, and by 2006 it was ready to pop. We are still feeling the effects.
Hopefully we can become a nation of innovators and producers, making needed products and providing solutions based on real needs--not just a quick profit. Let me know what industries you think have growth potential and where America can shift its priorities on the road ahead.
--Jens
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