Service companies activity expanded the most in the month of December, this increase was the most in nearly a year. This activity included increases in new orders and new hirings. Non manufacturing jobs also had an increase in activity. This rate was 56.1 in December the highest since February last year. Any activity over 50 indicates expansion in the area. So for the average of about 54 shows the expansion in non manufacturing jobs. Services had a large surge last month making up 90 percent of the new jobs in the past month. However this was the lowest amount since June.
From reading this I assume that jobs are going to continue to increase in the service job area as jobs such as Manufacturing are going to continue to diminish. Many of these service jobs are in businesses such as retail, restaurants, healthcare, and construction. Service jobs are the new manufacturing jobs such as farming was the main job source before that.
http://www.nytimes.com/2013/01/05/business/economy/services-still-the-backbone-of-job-growth-data-shows.html
I agree with you on this. Currently, other up and coming economies have taken over manufacturing jobs. They are able to produce more for the same amount due to factors such as cheaper labor. The US economy will soon be supported by service jobs. Many have yet to accept this, however. All that's needed is for people to be flexible and willing to accept this transition. If this doesn't happen, frictional unemployment could stay high due to people looking for manufacturing jobs that aren't available, simply because it's with what they are comfortable.
ReplyDeleteYou mentioned healthcare as an increase in jobs. It will be interesting to see how ObamaCare continues to affect the industry, however, most insurance experts art predicting ObamaCare to hit insurance companies hard.
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