Last year was challenging, to say the least. Over 22 million U.S. jobs were lost due to the coronavirus crises, and as of December 2020, there are still 10.7 million unemployed Americans. However, with several COVID-19 vaccines rolling out, 2021 is poised for a massive year for job growth and may even be the biggest year for job growth ever recorded.
Largest job growth since 1939
Job market experts and economists project a colossal year for job gains – bigger than any other on records dating back to 1939. According to economic forecasting from Oxford Economics, job growth will climb to 5.8 million in 2021. Economists at the University of Michigan’s economists are predicting gains to reach 5.3 million. Both projections for 2021 will put job gains well above the 4.3 million created in 1946, the start of the post-WWII economic boom.
Hiring is expected to start slowly this year; however, it will pick up steam as vaccines become more accessible and people can resume activities currently under lockdown. So, where will this growth be generated?
What industries will soar?
Throughout the pandemic, some industries are struggling while others are flourishing. Last year, leisure and hospitality, retail, restaurants and bars, and professional and business activities were hit the hardest. In December, employment in construction, transportation and warehousing, manufacturing, and wholesale trade grew despite a cumulative loss of 140,000 jobs. These industries will continue to experience job growth well beyond the virus.
Other industries that are ripe for a strong year of job growth are information technology services. In December, tech companies added more than 20,000 jobs. Furthermore, job postings for core IT positions grew to nearly 207,000 jobs. This trend will continue throughout the year as more Americans continue to work from home permanently.
Consumer habits have shifted during the pandemic, and many of these new routines are here to stay. Ecommerce has skyrocketed during the pandemic, and as a result, transportation and warehousing are surging. For example, Amazon has officially taken over Boeing as Washington state’s largest employer. With this boom in online shopping, employment in couriers and messengers has increased by 222,000 since February 2020. This trend will continue to climb in 2021.
Need help finding talent this year?
If you are one of the many companies preparing your hiring strategy for the new year, JSG is here to help. The market will be competitive, and you may need to seek the aid of a hiring professional. So, partner with JSG today to find the workers your company needs to keep pushing forward.