The service sector is leading the way in the economic recovery. Three years after the recession officially ended, more than 70 percent of the service industry jobs lost have returned, according to an article on USAToday.com.
In contrast, only 15 percent of jobs lost in manufacturing, construction and other goods-producing industries have come back, data from the U.S. Labor Department show.
“You have winners and losers, and the contrasts are sharper because of the severity of the recession,” says Mark Zandi, chief economist at Moody’s Analytics.
Do these results surprise us? No. It’s a good sign for the economy, service industries especially. Manufacturing is being moved abroad, so that’s why the number there isn’t as high. It’s hard to compete with low-wage countries.
And there are other trends driving the recovery. We’re seeing an increase in the number of smaller firms, from attorneys to CPAs, tax services and financial planning. There are a lot more entrepreneurs out there.
Even before the recession, the service sector outpaced the goods-producing category for several years. Companies are being more efficient with fewer resources. They’re doing more with less.
The economic downturn officially started in December 2007 and ended in June 2009, during which time the nation lost 8.8 million jobs. About 3.8 million jobs, or 44 percent, have been regained. Most economics don’t expect all of the jobs lost to be back until at least 2015, USAToday.com reports.
Source: USA Today, July 2012