The New York Times is getting sophisticated with their online news reporting and interactive media. It seems as though they are following some of the trends displayed within the report. The article “How the Recession Reshaped the Economy, in 255 Charts” highlights industry changes over the past decade providing some great and not-so-great news. The mapping of economic data helps provide a greater understanding and analysis of market trends.
A Mixed Recovery: Jobs in the middle of the spectrum shrunk while the periphery grew. Employment in healthcare and energy grew while jobs in construction and real estate declined.
Different Kinds of Jobs: The low end service industry and the high end technology sector experienced increases.
Home Prices: Home prices have rebounded but new construction has not.
U.S. Manufacturing: Manufacturing has seen a reemergence in the export laden sectors such as aerospace and medical equipment but less in labor intensive industries such as clothing.
Energy and Oil Rebound: Energy and oil industries have moved upwards.
Digital Revolution: Traditional publishers declined but those industries relying on data such as online sales, online content, and software skyrocketed.
Grooming: Nail salons, pet services, and cosmetic products moved upward.
The report doesn’t provide deep explanations as to why certain industries were successful in the new market and others were not so successful. The service industry is growing and providing more jobs to those who are entering the labor market, have been displaced, or have not gained enough knowledge to move into higher skilled jobs. Low skilled and labor intensive sectors are declining in the U.S. while being displaced to low labor cost countries. However, high technology and analytical markets that include biotechnology, cutting edge manufacturing, and digital services are gaining.
The report helps highlight how new skills and greater education will be needed for high paying jobs in the new economy. Many of these industries are scientific, information technology reliant, and require higher levels of critical thinking to operate effectively. It is difficult for countries to easily copy this knowledge and the U.S. is gaining traction in attracting, retaining and growing these industries.
Housing isn’t as important to the aging Baby Boomer demographic. Many are either selling their homes, remodeling them, or leaving them as part of their wills. The Millennial Generation is just starting to purchase homes and due to budget and financing constraints is optioning to purchase existing homes versus building new ones. They have learned to do more with less-fixer uppers in descent neighborhoods are great.
People also want to feel good even though they don't have a lot of money. They are taking their dogs to the parks, groomers, and trainers. They are getting their hair done and polishing their nails. Even though some money is being spent the process is generally more psychological. Spending a little money looking good and feeling good increases positive feelings. Household wealth appears to be slowly climbing again.
The market is continuing to transition from the Industrial Age to the Information Age. Highly technical skills are needed to ensure that new products and services are effective in competing on the global market. Those being rewarded within the economy have gained sufficient skill, education, and knowledge to move into growing sectors. Some are being displaced and taking jobs where they can find them. The service industry is growing and appears to be filling this need with greater job growth. The economic recovery is split into a camel hump gain.
Ashkenaws, J. & Parlapiano, A. (June 5th, 2014). How the Recession Reshaped the Economy, in 255 Charts. New York Times. Retrieved June 5th, 2014 from http://nyti.ms/1mX3dd7