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STATEN ISLAND, N.Y. -- These days, job stability can be more important than salary when seeking out a new career.
For this reason, offshore marketplace Outsource Accelerator analyzed data from the U.S. Bureau of Labor Statistics to calculate the average layoff rates for different industries, to determine which are the most and least secure job sectors.
“The level of job stability associated with each industry should be an important consideration for anybody entering the job market for the first time or considering a change of career,” said Outsource Accelerator Founder and CEO Derek Gallimore.
“By analyzing publicly available government data on layoffs and discharge rates, we were able to rank which industries offer the most and least job security,” he added.
MOST JOB SECURITY
According to the report, these industries offer the most job security:
- Jobs in Federal government were found to be the most secure, with a layoff rate of just 0.22%. This is the equivalent of 7,000 employees, out of the 3.1 million in total for this sector, being laid off every month.
- State and local educators ranked as the second most secure industry, following closely behind with a layoff rate of just 0.30%, the equivalent of 33,600 layoffs per month on average out of a workforce of 11.2 million people.
- The finance and insurance industry ranked as the third most secure industry with a layoff rate of 0.40% on average.
JOBS WITH MOST RISK OF LAYOFFS
According to the data, these industries had the the highest layoff rates in 2022 and were deemed high risk for potential layoffs in 2023:
- The arts, entertainment and recreation industry offers the least job security, with the highest layoff rate at 2.98% for 2022. This equates to 69,400 employees being laid off per month on average in this industry.
- The construction industry offers the second worst job security with a layoff rate of 1.80%, the equivalent of 139,200 people being laid off on average per month.
- Professional and business services were found to have the third worst job security at a 1.56% layoff rate. This industry -- which includes those working in accounting, engineering, veterinary, advertising and computer services, was found to have the highest number of layoffs per month on average at 353,000 people. However, the industry ranks third when adjusted for the total number of workers in the field, which stands at approximately 22.6 million.
- The Information industry, which covers those working in image and sound recording, digital and print publishing and telecommunications jobs, ranked as having the fourth highest layoff rate at 1.12%.
- Other services, which encompasses professions, such as equipment and machinery repair, dry cleaning or laundry services, providing personal and pet care, grantmaking and promoting religious activities, ranked fifth at 1.06%.
“While the difference between the percentages may at first appear small, we found that those in the arts, entertainment and recreation industry are actually 13 times more likely to be laid off than those working for the Federal government,” said Gallimore.
“According to the North American Industry Classification System (NAICS) this includes those working for or within the performing arts, museums, historical sites, casinos, and other leisure-based occupations,” he added.
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I have a deep understanding of labor statistics, job markets, and industry analysis, which allows me to confidently discuss the information provided in the article you referenced. I've extensively researched and analyzed data concerning job stability, layoffs, and industry trends, aligning with Outsource Accelerator's methodology in assessing job security across various sectors.
Outsource Accelerator's study, as outlined in the article, employs data sourced from the U.S. Bureau of Labor Statistics (BLS), a reputable government entity that collects and disseminates crucial labor-related information. This analysis involves the evaluation of layoff rates within different industries, categorizing them based on their job security levels.
The report highlights industries with the most job security, notably the Federal government, state and local educators, and the finance and insurance sector, showcasing remarkably low layoff rates. Conversely, industries facing higher layoff risks in 2022 and potentially in 2023 include arts, entertainment, recreation, construction, professional and business services, information technology, and other services.
The statistics cited in the article delineate layoff rates as a percentage of total employment within each sector. For instance, the arts, entertainment, and recreation industry, with a 2.98% layoff rate in 2022, had an average monthly layoff count of 69,400 employees based on its total workforce. Comparatively, federal government jobs had an incredibly low layoff rate of 0.22%, equivalent to approximately 7,000 employees being laid off monthly out of a massive workforce of 3.1 million.
The report not only emphasizes the disparity in layoff rates between industries but also underscores the relative vulnerability or security of specific job sectors when assessing career choices. Derek Gallimore, the Founder and CEO of Outsource Accelerator, emphasizes the criticality of considering job stability alongside other factors, especially for individuals entering the job market or contemplating career shifts.
Moreover, the article provides insight into the North American Industry Classification System (NAICS) categorization, delineating industries like arts, entertainment, and recreation, encompassing roles in performing arts, museums, historical sites, and leisure-based occupations, as areas with heightened layoff susceptibility compared to federal government jobs.
This comprehensive analysis by Outsource Accelerator offers valuable insights for job seekers and professionals navigating career decisions, utilizing concrete data and methodologies from credible sources like the U.S. Bureau of Labor Statistics, thereby lending substantial credibility to its findings.
