A Shift in the Labor Marketby Tim Manni
A decline in jobs producing consumer goods has led to an increase in jobs providing services as well. 2007 labor statistics reveal professional and business, education and health, and leisure and hospitality services are way up compared to durable and nondurable goods manufacturing.
Steady increases in gasoline prices coupled with a strained economy have caused Americans to buy fewer cars. The Kiplinger letter predicts Americans will purchase a meager 15 million cars, SUVs, and trucks in 2008, a million less than last year and the worst number in 10 years. Predictions suggest half of all ’08 auto purchases will be foreign brands, further crippling the manufacturing industry.
Manufacturers are not the only ones dealing with the shift in the job market. MBAs and business undergrads are searching harder for jobs, making less money early on, and are settling for jobs in fields other than business. One study suggests individuals who graduate in an economic downturn earn six percent less in the first 10 years of their career.