Service Jobs Growing Faster Than Manufacturing Jobs

Since the United States economy bottomed out in 2008, companies in the manufacturing industry have seen a significant drop in demand and, subsequently, a loss of manufacturing jobs. Though recent data seems to indicate that the manufacturing industry is slowly gaining strength, government projections show that the service industry is growing faster.

In a report released in early January, the United States Bureau of Labor Statistics (BLS) stated that the number of manufacturing jobs increased in December 2013. The industry added 9,000 jobs during December, continuing its recent growth trend. Within the industry, primary metals and petroleum products added jobs, but the electronic instruments manufacturing area lost jobs. The report also stated that the industry added just 77,000 jobs in 2013, which is just half of the 154,000 manufacturing jobs that were added in 2012. Despite the lack of impressive numbers, however, the industry is maintaining a slow but steady growth rate.

Service industries, on the other hand, are continuing to grow at a faster rate. The professional services industry added 19,000 jobs in December, and during 2013, the industry grew by an average of 53,000 service jobs per month. Based on those numbers, the service industry is outstripping the manufacturing industry in terms of demand and job growth.

For professionals in the manufacturing industry, the long-term jobs forecast doesn't look good, particularly in comparison with the services industry. Though President Obama is focusing on advances in manufacturing, the industry is unlikely to ever regain its former power. The latest manufacturing technology is set to improve speed, efficiency, and costs for factories, and these improvements are positive for businesses in the industry. Unfortunately, automated factories and updated prototyping equipment also come with a downside: a loss of manufacturing jobs. New machines such as 3-D printers and automated systems require fewer human operators, so companies will be forced to reduce the number of people they hire.

In fact, the BLS predicts that the manufacturing industry will lose approximately 549,000 manufacturing jobs by 2022. In comparison, the service industry is expected to grow considerably. According to a BLS report from December 2013, most of the economy's expected 10.8 percent growth will happen in service-providing industries. The healthcare industry is projected to grow at a rate of 2.6 percent per year, amounting to approximately five million additional service jobs by 2022. The construction industry is expected to see a similar rate of growth, adding about 1.6 million jobs by 2022.

For manufacturing professionals, the path forward seems clear—workers will need to be skilled in advanced technology to secure the manufacturing jobs of the future. By staying up to date on the latest automation and lean manufacturing technology, you can help improve your chances of finding secure long-term employment.

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