See the complete list of trends that we analyze.
1) U.S. Job Market Overview
Job seekers in 2010 will continue to face a difficult job market, although conditions may improve a bit by the end of the year. Many types of employers are restructuring and downsizing thanks to the deep financial crisis of 2007-2009. Job seekers who want good positions will be forced to be better prepared and to do better research than in the boom years of the recent past. They will also have to work harder to find a good job.
Job seekers in 2010 should be prepared for the fact that nearly all industry sectors have suffered ill effects from economic and financial market problems that originated when the housing bubble finally popped in mid-2007 and the financial meltdown accelerated in 2008. America’s unemployment grew steadily through 2009, and unemployment will remain very high in 2010.
The good news is that a select set of employers and growth companies will offer good job opportunities during 2010. In this period of challenges, a few companies will enjoy booming business. Sectors such as hi-tech batteries, education and health care are growing. Many companies with exciting new technologies or cost-saving services will see terrific growth.
Other firms will hire only limited numbers of employees, while some will downsize. Most firms that specialize in the manufacture or sale of luxury items, along with those that sell discretionary personal services, will find business to be very slow. Many companies will continue to wrestle with challenges such as intense competition and tight credit. The number of firms taking bankruptcy will remain high.
Growing numbers of consumers will prefer to buy from firms that sell goods and services online, offering savings of time, money and car travel. This boosts companies like Amazon.com that offer low prices combined with deep selections and great customer service.
The travel industry will continue to suffer as both business and leisure travel have been cut dramatically. Travel firms that do best will be those that have everyday low prices, such as Southwest Airlines, along with those that offer all-inclusive prices that seem like bargains, such as popular cruise lines.
The automobile sector will face continued tough times. Many consumers will be more likely to fix up their old cars than buy new ones. While this is hard on new car dealers, auto parts stores and car repair firms are enjoying booming business. Likewise, homeowners may make repairs or do light remodeling rather than move up to larger homes.
Americans who find themselves in the market for a job will need to understand the changes surging through the economy in order to determine which companies to pursue and which to avoid. The U.S. employment market is evolving quickly, and job seekers must be both knowledgeable and nimble in order to position themselves to find promising careers.
In order to create a robust job market, corporate investment, profits, productivity and revenues must align themselves correctly. These economic indicators were positive during the 2003 to mid-2007 period, and millions of new American jobs were created. As 2007 was winding down, the residential real estate crash, high levels of debt and difficult credit markets were combining to restrain the economy and put a damper on the creation of new jobs. Unfortunately, 2008-2009 saw these problems spread throughout most U.S. business sectors and throughout the global economy as well. Eventually, a major global meltdown at banks and investment firms occurred.
During 2010, chief executives will continue to find themselves under intense pressure to maintain profitability while keeping their staffs and investment needs lean. The uncertainty created by the financial crisis will make corporate executives extremely cautious. New grads will find it difficult to land their dream jobs. Nonetheless, there will still be job opportunities for those who are diligent in seeking good employers in stronger business sectors.
Some employees will find their work hours cut, face temporary furloughs, or have their pay or benefits cut. Many people who would prefer to be hired as permanent employees will find work as temps instead. Other employees will find that their jobs have been eliminated because work has been outsourced to another firm.
Hiring at federal government offices was very high in 2009 and will most likely continue in 2010. On the other hand, most city and state governments are facing major budget crises, and the job market in those sectors may be grim.
| Economic Factors Affecting the Job Market |
Business Productivity: Productivity has been rising at desirable rates in recent years. That is, more business can be produced—whether it is goods or services—by utilizing fewer workers than before. This will be extremely beneficial to the U.S. economy in the long run, but it can hurt the job market over the short term. Productivity is boosted by new technologies, improved management methods and other factors. It can also receive a quick boost from restrained corporate hiring. If rising productivity occurs along with rapidly rising sales and profits, then the job market will improve.
Corporate Sales: For 2010, many sectors, particularly retailing, will find revenue growth hard to come by. This will make many employers much less likely to hire new people.
Corporate Profits: When profits increase sharply, companies are inclined to increase both business investment and hiring. Fortunately, 2004 through 2007 saw steady growth in corporate profits as the economy rebounded. As a result, large numbers of new jobs were created, and the national unemployment rate was extremely low. Profitability took a deep downturn in 2008. Many employers were able to post reasonable profits during 2009, but this was generally a result of deep cuts in spending and hiring. The jobs market has suffered as a result. Hiring will rebound when corporate sales, and accompanying profits, show significant growth. This is not likely to occur in 2010. |
In order to compete effectively in today’s job market, one of the most important things you can do is arm yourself with knowledge. It is vital for the knowledgeable job seeker to use the best reference tools possible in order to seek out employers that offer a reasonable balance of financial stability, opportunities for advancement and good pay. Excellent job opportunities always exist if you know where to look. Many of America’s most successful firms currently need large numbers of new employees.
For example, the health care sector continues to grow. Leading companies in biotechnology, renewable energy, online services and education will greatly expand their businesses over the mid term. Thousands of companies, in technical and non-technical sectors, will need large numbers of new hires. In particular, companies that offer products or services that save time and/or money will prosper—for example, many types of discount retailers, along with companies that offer services that help businesses operate more efficiently, will be hiring. Meanwhile, large companies that are not increasing their overall numbers of employees will be hiring on a regular basis due to normal attrition—that is, the loss of employees due to retirement, relocation or other personal circumstances. For example, a company the size of Walgreen’s typically needs to hire tens of thousands of workers yearly due to normal attrition.