Employment Sectors that Have Been Hit the Hardest

The Bureau of Labor Statistics (BLS) has recently released the unemployment figures for August 2009 showing the continued decline of employment for most Americans in almost all employment sectors.  Besides the auto industry there have been a couple other industries hit the hardest by the recession.  These industries are often centered in particular geographic places.  Some sectors, like the construction and building sector, have had unemployment rates double or even triple over the past year.

It is little surprise that the construction industry has been crushed by the recession.  Everyone is looking to do more with less, and commercial real estate as well as new residential building have both seen better days.  Unemployment in this sector has doubled since 2008, with little hope of slowing.  Some analysts expect this sector to see another doubling of its unemployment rate before the economy turns around and new construction jobs are created.  Without a demand for new housing and new commercial buildings, construction has slowed to a near halt, the only real exception being government construction, which has increased since the passing of the stimulus bill and will likely continue to do so well into the next few years.

Another sector that has been nearly decimated is the services sector.  Nevada has taken the majority of the damage here as casinos and restaurants have closed one after the other due to economic hard times.  Other service industry jobs have been lost since 2008 bringing the unemployment rate in this sector to a new high of 9.4%, up from 6.3% in 2008.  The fact that the unemployment rate hasn’t quite doubled isn’t at all comforting, considering the sheer number of people employed in the service industry far outstrips many of the other industries.  Entire town’s economies are often dependant on this industry for sustenance.

The transportation and materials moving sector has seen better days as well.  Currently showing an 11.8% unemployment rate, this sector has seen a doubling of this rate in a year.  The airline industry as well as truckers, port workers, and others involved in transportation have all experienced major resistance in the job market.  This market, more so than many others, is affected by the general health of the economy.  Businesses and individuals don’t need to move people and things if there is no inherent demand for them to begin with.  During a recession, often times the first industries to feel an impact are the transportation and materials moving industries.

Sales and related industry sectors have fallen at the same rate as consumers have been unwilling to spend their hard earned cash.  The sales sector unemployment rate hasn’t quite doubled, but it joins the ranks of most other sectors that have felt the effects of the tightening of the credit markets.

All of this data points to the fact that industries that do not require much education, or much job experience, are often at the leading edge of a rise in unemployment.  Not to say that these jobs are less important, or easier, but those people who are looking for a first job or those not lucky enough to have had the opportunity for an education have felt the recession hit them harder than their more educated peers.  The importance of education and diversity of work experience cannot be emphasized enough as a way for people to beat the trend when it comes to high unemployment rates during a recession.