The number of jobs in the economic sector decreased from a year ago and from quarter to quarter, according to new figures from the Bureau of Labor Statistics (BLS). Health problems and containment measures implemented since March 2020 have weakened labour demand, making the economy less competitive. The number of new jobs fell 0.4%, the lowest number since the series began in 2015. The highest percentage of jobs was for semi-skilled workers. Most of the remaining jobs fell into the direct category.
Direct jobs
The creation of direct jobs in an economic sector creates indirect jobs. This induced workforce is not as easy to measure, but it does exist. Bringing a single natural gas well online requires hundreds of people to work in various occupations. To visualize the scope of these jobs, consider Figure 1. Indirect jobs in an economic sector include construction workers, factory workers, and administrative assistants. By combining these jobs, more than a million people are employed in the industry.
Creating indirect jobs requires measuring the impact of a direct job on the economy. For instance, a manufacturer closing a factory to focus on the assembly line would create more indirect jobs. This would result in more spending than the original sector. Retail trade and durable manufacturing have similar spending multipliers. The effect of a closure in one sector on another is less visible but still significant. The direct job loss from a single factory may be less than half of that amount.
A lost job has ripple effects throughout the economy, so the loss of one industry may not have an immediate impact on the labor market. Likewise, an investment in one industry can support thousands of indirect jobs. For example, maintaining a large solar array or smart-grid is as labor-intensive as processing fossil fuels. Apollo Alliance says that each investment in renewable energy infrastructure creates 5.2 direct jobs and 7.9 indirect jobs. Other studies support these numbers.
Part-time jobs
There is a significant relationship between the number of part-time jobs and the economic sector. Part-time jobs are more likely to be held by women than by men. In addition, women have been consistently more likely to be employed during downturns. The decline in part-time jobs is largely due to the increase in part-time women workers. But this relationship between part-time jobs and the economic sector is complex, and is likely to be influenced by a number of factors.
One of the main factors driving part-time employment is the emergence of new laws. The Patient Protection and Affordable Care Act requires employers to provide health insurance to their employees, but this law only applies to firms with 50 or more full-time equivalent workers. Therefore, firms may adjust by creating more part-time jobs. For example, similar state-level legislation in Massachusetts and Hawaii led to increases in the number of part-time jobs for low-skilled workers.
The overall level of part-time employment in many countries is significantly higher than that of the total workforce. These workers account for a large share of the employed population and can be found in most segments. The definition of part-time employment is dependent on a person’s education, occupation, and sex. However, there are certain characteristics that may help to explain the high number of part-time workers. The data collected by Eurostat are indicative of this fact.
Nonagriculture self-employed
The growth of nonagriculture self-employed jobs in the economy is likely to increase the total labor force by two-thirds over the next decade, if population growth continues to rise at its current pace. However, there are barriers to growth in this sector. In particular, the difficulties in accumulating human capital limit its growth potential. Nonetheless, productivity in nonagriculture sectors is greater on a per capita basis, despite the small differences in the number of workers.
The BEA collects information from multiple sources and produces estimates of labor and earnings for agricultural producers and nonagricultural businesses. The bureau also collects data on hired farmworkers and self-employed workers in agricultural support services. This information is not directly comparable to other sources of data on self-employment, since non-agriculture jobs are often classified in support industries. However, it may be useful in identifying how to identify the economic sector in which a self-employed job may be located.
Despite these differences in participation rates, self-employment is a substantial component of the economy. In developing countries, it is the most important sector, with up to eighty percent of adults engaged in the sector. In rural areas, self-employed workers are significantly higher than wage-labor participants. Compared to wage-labor participants in Ethiopia and Tanzania, self-employed workers in the service sector contribute far fewer hours per year than those in the agricultural sector.