Jobs are everything to the economy and to the demand for real estate. Within the economy, however, some jobs face an outlook for increased demand while others portend a decline. Two extremes include the almost disappearance of the travel agent industry with the other end of the spectrum being the explosive growth of Web site managers and programmers.
Those jobs that are facing the greatest increase in demand should become a focus for those heading into future careers. Future job demand is also a function of the replacing workers that retire or depart an industry.
Fortunately, the Bureau of Labor Statistics (BLS) forecasts the need for both replacements in each occupation and industry and net growth in job demand. Late last year the BLS released their forecast for U.S. employment from 2012 – 2022. In that forecast they project an increase of 15.6 million net new jobs with a growth rate for the decade of 10.8 percent.
Summary points included:
- While the net increase in total jobs will grow slightly just more than 1 percent per year from 2012 to 2022, the labor force is expected to increase just 0.5 percent per year. Hence the expectation is for a continued drop in unemployment rates.
- Aging Baby Boomers will see a U.S. workforce for the first time in which one-out-of every four members will be held by someone aged 55 or greater.
- The economic potential of the U.S. in the ten-year period from 2012 to 2022 will be restricted by a workforce that is growing at lower rate than overall demand for new workers.
- The majority of the 15.6 million net new jobs are forecast to be in service providing industries.
- The healthcare and social services sector will be the source of almost one-out-of every three new jobs, accounting for 5.0 million new jobs equating to an annualized growth rate of 2.6 percent.
- Construction sector employment is also expected to increase 2.6 percent per year on average with a 10-year increase of 1.6 million jobs.
- Five industry sectors will see an net decline over the 10 year period:
Federal government -407,500
Agriculture, forestry, fishing and hunting -223,500
- In specific occupations within the various industries, 14 of the top 30 based on percentage increase are in the healthcare industry and five in construction.
- Two-out of every three net new jobs in the top 30 growing occupations based on total employment growth do not require postsecondary education.
- More than one-half of the net job growth from 2012 to 2022 (8.8 million jobs) typically do not require any postsecondary education.
- 67.2 percent of the 50.6 million job openings (which includes both net new jobs and replacement jobs) from 2012 to 2022 will be replacement jobs rather than net new jobs.
So what are the forecast fastest growing occupations based on percentage increase from 2012 to 2022 according to the BLS?
Note that compensation is a function of supply and demand. Three of the top-10 fastest growing occupations do not even require a high school diploma or equivalent. As a result, the required skill set to qualify for some of these jobs (but not all) is very limited, and correspondingly, in some circumstances, so is the compensation.
To read the entire press release from the BLS on Employment Projections 2012-2022, Click http://www.bls.gov/news.release/ecopro.nr0.htm
The good news is that job growth is expected to be double the increase in the overall workforce. Better times appear ahead.
Never forget, however, that jobs are everything.