Reports from the Economic Front

a blog by Marty Hart-Landsberg

Service Sector Employment Problems

At one time economists argued that our shift to a service oriented economy would encourage employment stability.  The argument was that since firms could not build up a big inventory of services (like they could with parts and components), private sector service employment could be expected to be relatively recession proof. Well that seems to be changing.

The table below shows “the total private-sector employment loss in each of the last four recessions, the decline in jobs in the goods-producing and in the private service-providing sectors, and the share of each in the total loss.”  In contrast to past recessions, service sector employment has taken a big hit this recession; in fact this sector accounts for more than fifty percent of total private sector job losses.

Is it safe anywhere?

[Click on table for easier view]



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