A number of industries relying on in-person interaction and customers have faced steep declines in employment, a new U.S. Census Bureau report has found.
Electronic stores, women’s clothing stores, hotels (although not casino hotels), motels and full-service restaurants saw large employment decreases between 2017 and 2022, suggesting that the demand for in-person consumer services is declining, something that was intensified by the pandemic.
Why It Matters
Cost-cutting is often a major reason for large layoffs in companies and business, meaning that the industries most affected by job losses are likely to be the ones struggling to generate revenue, typically due to changing consumer trends.
While the data was notably affected by the COVID-19 pandemic, which impacted in-person consumer services as there were many social and travel restrictions in place, it also indicates a broader, ongoing trend that more Americans are opting to use consumer services from the comfort of their homes rather than going to places in-person.
What To Know
According to the U.S. Census Bureau report shared on December 30, full-service restaurants saw the steepest decline of workers, of 309,700, although this was a small percentage of its workforce compared to the other heavily impacted industries.
Electronics stores saw the largest employment decline between 2017 and 2022, a 40.8 percent decrease in its workforce, equating to 110,700 workers. This was coupled with a $9 billion or 12 percent drop in revenue.
Meanwhile, women’s clothing stores saw a decline of 133,500 workers, a 38.7 percent decrease in its workforce, while children’s and infant’s clothing stores also saw a huge drop in employment, of 58.6 percent.
Hotels (except casino hotels) and motels saw a decline of 188,200 workers between 2017 and 2022, marking a 11.7 percent drop in workforce, which was largely due to pandemic-related travel restrictions, the report noted.
At the same time, other industries saw major revenue increases – particularly those supporting consumer convenience and online services.
Business to business electronic markets, local messengers and local delivery, as well as electronic shopping and mail-order houses were among the industries seeing the largest spikes in revenue between 2017 and 2022.
Business to business electronic markets, which for a fee connect buyers and sellers of online goods, had the largest increase as a percentage – of 380.5 percent, or a $11.8 billion increase.
However, it was electronic shopping and mail-order houses that had the largest increase in terms of actual revenue – of $546.7 billion, or 106 percent.
Employment in this industry, which includes establishments selling merchandise via web retailers and other means, also grew by more than 1.2 million workers, equating to a 215.3 percent gain.
Local messengers and local delivery also had a notable increase of 314 percent in revenue, or $17.9 billion. This was driven largely by a growing demand for fast, contactless service from workers who deliver groceries, meals, and alcohol within a single metro area.
What Happens Next
It is likely that in a constantly evolving digital world, the demand for online, more convenient services will continue to shape industries and consequently impact their employment levels.
Source – https://www.newsweek.com/us-industries-that-have-suffered-worst-job-losses-11296028