Tuesday, October 11, 2011

Where Are We Creating Jobs, Pt. II

Let's continue on the theme of looking at where the economy is creating jobs.  Under the service sector, the BLS has several sub-parts.  For our purposes, we'll look at the following areas, which represent the respective percentage amount of total service jobs.

Educational and health care jobs: 22%
Professional and business services: 19%
Retail trade: 16%
Leisure and hospitality: 14%
Financial: 8%

Let's start with educational and health care, by looking at the long-term trend:

Notice that the long term chart in log scale is very impressive and shows a strong, continued uptrend over a multi-decade time period.  While the pace has decreased somewhat over the last 10 or so years, we're still seeing a strong uptrend.

Over the last five years, we see a continued uptrend that wasn't even dented by the recession.  Over the last five years, this area of the economy has created 2.156 million jobs -- a very impressive feat. 

Let's move to professional and business services.

On the long-term chart, we see a strong multi-decade uptrend until the last recession.  While we saw job growth during the last expansion, it occurred at a slower pace.

On the five year chart, we see fairly strong job growth.  From peak to trough, the economy lost 1.669 million professional business service jobs.   But since the trough, the economy has added 897,000 jobs in this area of the economy.  Put another way, a little more than half of the jobs in this area of the economy have come back.

These two areas of job growth represent 41% of all service sector jobs.