When workers are scarce, jobs are more secure.
Some history: During the economic boom that led up to the 2008 recession, the manufacturing industry accounted for nearly 10 percent of involuntary discharges in the US. Two million jobs were lost, despite the fact that employers from all other sectors were busy growing their workforces.
The news: In the period from May 2017 to May 2018, manufacturing only accounted for 6.6 percent of layoffs. In all, there’s been a growth of one million jobs in this area since 2010. The retail and construction industries also have a lower percentage of the layoffs compared to the previous economic expansion. On the other hand, business services, hospitality, and healthcare sectors have seen an uptick in their share of layoffs.
Why? “Most manufacturing jobs today are technology jobs. It takes a long time to train someone for that role, so you’re reluctant to let them go for what could be a short-term slowdown,” David Nicholson, chief executive of a manufacturer in Detroit, told the Wall Street Journal. Additionally, the economy has grown slowly since the end of the recession and employers are being cautious with their hires. That reduces the likelihood that companies over-expand and have to lay people off in droves.
SOURCE:MIT DOWNLOAD
Some history: During the economic boom that led up to the 2008 recession, the manufacturing industry accounted for nearly 10 percent of involuntary discharges in the US. Two million jobs were lost, despite the fact that employers from all other sectors were busy growing their workforces.
The news: In the period from May 2017 to May 2018, manufacturing only accounted for 6.6 percent of layoffs. In all, there’s been a growth of one million jobs in this area since 2010. The retail and construction industries also have a lower percentage of the layoffs compared to the previous economic expansion. On the other hand, business services, hospitality, and healthcare sectors have seen an uptick in their share of layoffs.
Why? “Most manufacturing jobs today are technology jobs. It takes a long time to train someone for that role, so you’re reluctant to let them go for what could be a short-term slowdown,” David Nicholson, chief executive of a manufacturer in Detroit, told the Wall Street Journal. Additionally, the economy has grown slowly since the end of the recession and employers are being cautious with their hires. That reduces the likelihood that companies over-expand and have to lay people off in droves.
SOURCE:MIT DOWNLOAD
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