Service Industry Driving Job Growth


The growth in the job market is coming in the service industry, which traditionally has lower-paying jobs than the rest of the economy, but some white collar jobs are also coming back strong.
That’s according to a report in USA Today, which says, “More than 70% of jobs lost in service industries have returned three years after the recession’s end, while only 15% of jobs lost in manufacturing, construction and other industries that produce goods have come back.”
USA Today based its findings on employment in January 2008, when employment hit its most recent peak, through June 2012. As the daily newspaper reports, 8.8 million jobs were lost in the downturn, which officially began in December 2007 and ended in June 2009.
Another strong industry for recovery was accounting services. According to the USA Today numbers from the U.S. Labor Department, the numbers show accounting firms have regained 87 percent of the jobs lost. The explanation is start-up businesses are increasing, which drove a demand for more accounting services.
One interesting tidbit buried in the article could signal a positive change when it comes to paying for legal services. Law firms are charging flat fees for projects now instead of by the hour. That has weakened the re-hiring of legal staff but it has meant a major shift in the cost of legal services.