What Industries Are Growing the Fastest?

The U.S. workforce continues to evolve and innovate as the pace of change never flows. In 2024, there are five key industries expected to lead the way in terms of growth, jobs and overall success. Read on to discover what they are and how they are projected to get ahead.

• Tech: Not surprisingly, the technology sector leads the way when it comes to innovations and advancements. In 2024, expect to see more AI, more data analytics, more virtual reality and more, more, more when it comes to the latest and greatest in tech.

• E-commerce: Along the same lines, the online world of shopping continues to proliferate. As digital transactions become even easier to make, more consumers will turn their purchasing power online.

• Health care: The world of health care—and again, technology—is benefiting from revolutions in telemedicine and personalized medicine, wearable devices and a need for care across the globe. This sector, too, will flourish in 2024.

• Renewable energy: Solar and wind energy are now commonplace and support greener, more environmental practices that help individuals, businesses and communities meet their sustainability goals.

• Biotech: Back to technology, again! Biotechnology combines innovations in tech with scientific advances, which can support every other industry. From new research to genetic engineering to pharmaceuticals, biotech is definitely an industry to watch.

These five industries will spark growth, jobs and headlines in the year to come—keep an eye on technology, e-commerce, health care, renewable energy and biotech for many exciting developments.

Graying of U.S. Workforce

The U.S. workforce today is older and grayer than ever: Many Baby Boomers have continued to work into their 60s and 70s, but their eventual retirement is profoundly changing the national worker-to-retiree ratio. Even though the senior workforce remains strong, people are retiring at a faster rate than they are being replaced with new workers, challenging critical programs including Medicare and Social Security. In fact, Social Security will be unable to make full payments to retirees beginning in 2033 unless lawmakers make significant updates to the program.

While some might complain that younger Americans are less interested in hard work, they simply represent a smaller portion of the overall U.S. population as each generation has fewer kids than their parents’ generation did. There aren’t enough millennials and Gen Zers to balance out the retiring Baby Boomers, which impacts both workforce and economic growth nationwide.

More retirees also means more demand for health care and other senior services—1 in 5 U.S. adults today provide care for family members or friends who are unable to care for themselves, which can create financial, health and workplace issues in subsequent generations. One solution to the shortage of workers and caregivers lies with increased immigration, which remains a political hot potato.

Regardless, as more seniors retire, the workforce will continue to evolve and must find ways to adapt to fewer workers to fill open positions.

Top Trends for Gen Z College Students

Generation Z, also known as the “zoomers,” are seeking something more and something different from a college education than their predecessors. They’re a little less traditional and a little more career-focused for starters and are willing to change direction mid-course.

Colleges and universities, many of which are facing lower enrollments and graduation rates than pre-pandemic, should pay attention to the following trends among Gen Z college students.

• Gen Z college students want to learn their way. They are digitally savvy and already experienced some online schooling—this group loves game-based learning and the latest interactive technology (and don’t forget about social media). They also love hands-on learning—learning by doing instead of just listening—and education that is more self-directed and self-paced. Nearly three-quarters say they want to follow their own path in their own time and are willing to forego a traditional four-year college experience.

• Career and skills development matter. Gen Z is concerned about costs and wants to make sure that their education will get them the job of their dreams. They don’t want to be burdened by massive student loan debt and are interested in lucrative STEM careers such as engineering, data and computer science, nursing and more. They are also willing to take a gap year if it will help them graduate without debt.

• So does mental health—more than ever. This generation knows that depression and anxiety and other mental-health challenges are real issues and they want accountable services for wellness and mental health as part of their college experience.

• DE&I are an A-plus. Diversity, equity and inclusion aren’t just buzzwords for Gen Z college students. They recognize the importance of diversity in education, the workforce and the world at large. They care about social issues and social justice. Colleges and universities should, too.

Like every generation, Gen Z has its own priorities, needs and interests. Savvy colleges will pay attention when developing programs and priorities to serve this dynamic generation.

The State of Gig Work 2023

Gig workers today account for a full 14 million Americans, according to a recent McKinsey & Co. report, and nearly one-third of younger adults have earned income through a gig platform at some point in their burgeoning careers. Interestingly, nearly half of U.S. gig workers have full-time jobs.

The advantages of gig work are clear: flexibility, creativity, additional income, being your own boss and the ability to work from just about anywhere. However, the disadvantages are also noteworthy, including lack of health care, other benefits and protections as well as inconsistent pay—in fact, one-quarter of gig workers earn less than their state’s minimum wage and many report being treated rudely or poorly.

That might be why this type of work is more common among lower-income brackets—only 9 percent of upper-income earners are earning an income through online platforms, according to Pew Research.

The most popular industries for gig work are recreation, construction and business services while manufacturing is on the opposite end, with only 2 percent of workers, based on a recent ADP Research Institute survey. Work can be both online (administrative, creative, finance and accounting, legal and more) as well as in-person (house cleaning, delivery drivers, yardwork, etc.).

Gig work is a side hustle for most—68 percent do it as a part-time job, according to Pew Research—while about one-third use this flexible type of employment as a main source of income. Just over 10 percent of gig workers in the United States say that they make at least half of their income from this work.

While gig work will continue to evolve and have both advantages and disadvantages, it is clearly going to be an influential part of the U.S. economy for decades and decades to come.

What Gen Z Really Wants When It Comes to Work

Gen Z—the generation of Americans born between 1996 and 2010—knows what it wants when it comes to work, careers and professional satisfaction. Not surprisingly, flexibility, money and job security top the list for this group, which represents about 20 percent of the U.S. population. As more members of this younger generation enter the workforce, successful employers will take note of their priorities.

Interestingly, they comprise a smaller share of the workforce than Gen X and millennials at just over 70 percent, and they are also better educated than the preceding generation. Overall, this generation of workers, which is more keyed into the importance of mental health and wellness, seeks meaningful work that comes with flexibility and true work-life balance.

Further, a solid salary and benefits package are also important—longer hours and micromanagement top the list of turnoffs. The flexibility of remote work is another notable plus.

Gen Z is especially interested in tech jobs, consulting, engineering and freelance work. And employers are interested in hiring more young employees—more and more companies are also recognizing that they may need to bridge the knowledge and cultural gaps among generations in the workplace.

As veterans of learning, interning and finding their first jobs during a global pandemic, Gen Z knows what it wants and is willing to wait to find the right position. Employers may need to roll out the red carpet and offer an impressive package to attract the best of the best.

The Reality of a Return to Office Work

“Back to the office” continues to look a little different for everyone. Some employees are enjoying hybrid at-home and in-office work while others are now working in person full time. Others have opted for jobs that allow them to work permanently at home.

Each choice has a variety of benefits and challenges. A recent survey by software company Glean showcases some of the issues that workers are facing with a return to work.

Wellness issues. When employees lose the ability to set their schedule, get in a workout over lunch and enjoy a casual dress code, they sometimes struggle with mental, physical and emotional wellness. A return to the office is reportedly more stressful for many workers. Naturally, some also struggled with the isolation of working at home—making the case for the flexibility of hybrid work. Likewise, companies must prioritize employee wellness.

Communication challenges. When some employees are in the office and others are at home, communication issues can rise to the top. Not only do at-home workers miss out on the social aspects and water-cooler conversations of office work, they also have a harder time reaching team members and managers and may miss out on key information and news.

Lost connection and collaboration. Simply put, it is harder to connect, communicate and collaborate when workers are in different places, time zones and mindsets. Employees in the office typically have better available resources and a more regular schedule. Teams must make collaboration a priority if workers are continuing to adopt hybrid schedules.

Other reported challenges include lack of networking for at-home workers, varying levels of accountability and families that struggle with establishing boundaries. Teams may need to continue to adjust schedules and plans accordingly to maximize productivity, efficiency and employee satisfaction.

How to Craft the Perfect Text Message to Millennials

If you’re trying to communicate with a Millennial, don’t even think about calling or using a period in your text. Of course, those aren’t the only off-limits tactics.

This generation has its own communication rules and norms—particularly when it comes to texting—that businesses and organizations should consider when reaching out to younger consumers.

Consider the following strategies for reaching Millennials and Gen Z with text messages:

• Exclamation points yes, periods no. For whatever reason, Millennials find periods in text messages objectionable. So what’s a marketer to do? Consider the power of a well-placed exclamation point or use shorter phrases that don’t require end punctuation at all, such as closing with a coupon code. Question marks can also create a sense of curiosity and interest. While punctuation might seem like a small thing, it can be a big deal in your outreach to this generation.

• Numbers matter. No one wants to read an endless text—simply put, you will lose your audience if you can’t keep your point and your message short and sweet. When texting Millennials and Gen Z, the sweet spot is typically one to five sentences. Finally, it is important to share messages that are both clear and sincere.

• So do names. Be personal in your texts—use the recipient’s name and include details and information that they genuinely care about. Avoid generic messages in favor of specific and authentic ones.

• Use emojis for impact. Millennials still love emojis and they can help you tighten up messages, convey an emotion, and create a specific mood. Make sure you use emojis meaningfully and for impact rather than haphazardly and excessively in texts and other communications.

Finally, when texting Millennials, messages should be positive, interesting and include a clear call to action. Spam is never OK.

U.S. IT Staffing Industry Continues Fast-Paced Growth

Hot on the heels of an incredibly strong 2022—where revenue grew by 16 percent—the U.S. IT staffing industry is poised for 5 percent anticipated growth in 2023. And that’s not all: The industry is expected to grow by 7 percent in 2024, showcasing three overall strong years for IT staffing.

In 2022, IT staffing industry revenue grew 17 percent. Current challenges include a higher interest rate environment, slower wage increases, recession potential and increased caution for clients, among others. The second half of 2023 may see stronger overall economic growth and greater government spending.

On the whole, the U.S. staffing industry grew 28 percent in 2021, reporting more than $186 billion in revenue; it is expected to grow about 2 percent to exceed $216 billion this year—representing one-third of total global staffing industry revenue. It exceeds the combined revenue of the staffing industry in Australia, France, Germany, India, Spain, Sweden, Saudi Arabia and Turkey.

Canada, for example, is anticipated to reach about $8.6 billion in staffing industry revenue this year with France at $30 billion, India at $8.3 billion, the UK at $57.6 billion, Sweden at nearly $4 billion, Belgium at $7.7 billion and Japan exceeding $98 billion in revenue.

In 2021 and 2022, healthcare staffing led the way for the United States, growing 18 percent in 2022 alone so that it now represents the largest portion of staffing in the United States.

Manufacturing Jobs Returning in Droves to United States

In the past few decades, more and more manufacturing jobs have been outsourced or lost to other countries, due to costs and regulatory environments, among other reasons. This unfortunate trend, however, is starting to turn around as more of these jobs are making their way back home.

Here is a closer look at why and how manufacturing jobs are returning or “reshoring” to the United States:

• Industry and technology growth. Both the auto and electronics industries continue to grow at a fast clip, both requiring advanced manufacturing capabilities and supply. Some of these products are unwieldly and expensive to transport; likewise, products that require more advanced technology need the most skilled workers to create them, further solidifying the reshoring of manufacturing jobs.

• Money, money, money, money. Many manufacturing jobs originally left because labor and production were significantly less expensive in other countries. However, overseas wages continue to grow at a brisk pace, decreasing the desirability of offshore jobs. Asia—China, in particular—has recorded the fastest growth in wages. The gap between home and away is smaller than ever, making it more affordable and logical to do business in the U.S.

• Lots of logistics. Simply put, it is easier to do business closer to home. Overseas supply chain issues have also made headlines and raised prices. Finally, doing business abroad isn’t less expensive if you have to build new facilities and parts, pay for transportation and shipping, and hire workers who are getting more expensive every day. All of these logistical challenges mean it’s easier to do business in North America than on other continents.

While manufacturing jobs change with the times, more of them are now available in the United States and even more are expected to transition back home.

Gig Economy Stats Emphasize Highs and Lows of Freelance Work

Did you know?

…That more than 90 percent of workers in the United States say they would consider gig or freelancing work?

…That almost half of millennials use online independent contracting platforms to look for and find work?

…That gig workers earn nearly 60 percent less than traditional full-time employees—and most lack access to benefits, according to Prudential?

While the gig economy continues to grow, it also continues to have its challenges—including the many freelance employees who lost jobs due to the Covid-19 pandemic. There are, however, many benefits for all parties: Companies can save money since they don’t have to pay for full-time salaries, office space and benefits, while freelancers can enjoy greater flexibility, work-life balance and variety, even working for multiple companies at once.

Today, about one-third of all U.S. employees take part in the gig economy, according to Upwork, representing nearly 60 million workers who work an average of 43 hours per week. The best-paying positions are in AI and blockchain, and the government/public sector is the largest employer at 14 percent, followed by professional and business services, education and health, and manufacturing, based on Statista research.

Freelance and independent contracting work are increasingly popular in Mexico, India and other locations, and younger people, in particular, gravitate to gig work. Presently, most self-employed workers in the United States (nearly 75 percent) are white, according to USA Facts.

Notably, about 60 percent of gig workers tout the flexibility of their positions while only 27 percent of regular workers do so, according to Forbes. Women currently represent just under half of all freelance workers, although this number is expected to grow as more women opt out of traditional workplaces for reasons involving family, workplace discrimination and self-fulfillment.

Today, up to 25 percent of U.S. employees work from home or telecommute at least occasionally, based on a Global Workplace Analytics report, although this number too, is likely to trend upwards.

U.S. Job Openings Reach 5-Month High

Job openings in the United States reached 11 million in the last month of 2022, growing by close to 575,000 positions, a jump that surprised many experts, to reach a five-month high.

For every unemployed person in the United States, there were nearly 2 job openings, according to the latest Labor Department report. In particular, there were more than 400,000 open jobs in the food services and accommodation industry, which continues to lag its pre-pandemic staffing levels.

The labor market remains tight; however, the U.S. central bank still went ahead with a 25-basis-point increase of its policy rate, vowing more but smaller ongoing increases for borrowers. Wage growth was slow in the fourth quarter but could remain solid due to this latest report on job openings.

Other industries with notable openings include retail trade and construction. While some believe the latest report was a signal of a seasonal blip, others expect a challenging labor market for months to come.

Fear of Getting Laid Off is Latest Remote Work Issue

While many U.S. workers have enjoyed remote work over the past three years, a top concern heading into 2023 is potential layoffs and the worry about finding a suitable new job, according to a recent CNBC/Momentive Workforce Survey that interviewed more than 10,000 workers across the United States. In particular, the tech industry is seeing a number of layoffs, but the trend is valid across industries and positions.

Interestingly, those who do not work remotely are less worried about both getting laid off and/or finding a new position, noting how strong the labor market generally remains. While about one-quarter of remote U.S. workers believe they could find a new job in just a month if they were laid off, more than 40 percent of in-person workers feel the same way. Ultimately, those who spent their days in the office feel stronger about both their current and future prospects.

Many remote workers have moved to a desired location which may not have as many openings or applicable positions available in the event of layoffs, and they might not be willing to give up the flexibility of working from home. Notably, in-person workers believe they have better career advancement prospects as well.

In general, employee morale is higher than it has been in years, with a full 72 percent stating that they have either “excellent” or “good” morale when it comes to work; this number is even higher for younger employees. Not surprisingly, the biggest layoff-related concern is income and maintaining a standard of living.

As of last November, nearly 16 percent of occupations requiring a college degree allowed for remote work while it was about 5 percent of those that did not require a degree, based on three-month rolling average data.