Will You Find a New Job?
According to recent Labor Department projections, job growth over the next ten years will slow down dramatically amid a sharp decline in the active labor force and an aging population. This, along with a sharp increase in productivity influenced by innovation in the technology sector will continue to have a dramatic effect on the job market over the upcoming years.
From the years 2020-29, the economy is expected to add only 6 million new jobs, an annual growth rate of only 0.4%. Comparatively, the annual growth between the years 2009-19 was of 1.3%. To be fair, it is important to take into account how the recovery from the Great Recession gave this data a boost.
Keep in mind, at no point in time has the coronavirus pandemic and its influence been mentioned. The pandemic, that initally costed more than 25 million jobs in the U.S has not been accounted for in this data. The Labor Department has already stated that the virus could cause “new structural changes to the economy” and will be accounted for in future projections.
It is already estimated that most of the job gains over the upcoming decade will be concentrated in health care. Another area set for growth during this period is that of food preparations and serving occupations.
For investors, accurately prediciting what the future will look like is an important skill a small few will ever master. Keeping tabs on big economic trends and data is only one the ways to achieve such a large task. Never forget that some things in this world, you just can’t predict.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.