Service-providing industries, including IT, management, and healthcare, have seen the biggest job growth in recent years, even during the COVID-19 pandemic, finds new research from ERShares.
In a new white paper, “Entrepreneurial Companies Create More Jobs,” the authors investigate which industries have shown the largest increases in job creation, as well as the industries that are losing jobs.
In particular, the tech sector —including information technology operations, data processing, and related processing—has spurred significant job growth even during the pandemic. It’s predicted to continue adding jobs.
IT, Healthcare to Lead in Job Growth
According to the paper, in the ten years ending 2029, the management, scientific, and technical consulting services industry is projected to grow by 334,200 jobs. Computer systems design and related services is projected to grow by 574,500 jobs over the same time period.
These industries all have a robust entrepreneurial presence. Prominent companies include Alphabet and NVIDIA, which continually press forward with investments in new technologies.
Within the information technology sector, fintech and e-commerce are two of the fastest growing sectors. Entrepreneurial companies such as Amazon are leading these industries with robust growth.
Another sector predicted to have exponential growth in the next decade is healthcare and social assistance. Data from the U.S. Bureau of Labor Statistics finds that healthcare and social assistance encompasses five of the 20 fastest growing industries, with employment predicted to grow 15% in the next decade. That represents roughly 2.4 million new jobs created.
Industries in Decline: Information, Retail, Hospitality
Meanwhile, automation will continue to reduce the necessary workforce size in certain industries, such as manufacturing, which was already in decline before Covid-19 hit. However, the robotics industry creating the machines automating much of the manufacturing work should continue its growth.
The “information industry” has seen a division, with digital information on the rise and print information on the decline. Newspapers, periodicals, books, cable TV, and other subscriptions, as well as wired telecommunication carriers, are receding the most. Between the printed news, books, and wired telecommunication carriers, over 200,000 jobs are estimated to be lost between 2019-2029.
Retail, hospitality, and leisure have all struggled during the pandemic, while technology companies have thrived. It’s too early to tell what the lasting impact of COVID-19 will be on these sub-sectors, especially as some of the industries are beginning to show signs of recovery. However, it is likely that these industries will be irrevocably changed because of the pandemic.
Capitalizing on a Changing Economy
The ERShares Entrepreneurs ETF (ENTR) offers investors a way to capture the shifting trends in the U.S. economy, as founders work to disrupt and drive their industries forward.
ENTR, which tracks U.S. large cap companies, is based on the company’s proprietary Entrepreneur Factor, which combines thematic research and artificial intelligence technology to identify high growth potential entrepreneurial companies.
ENTR offers an almost 95% exposure to sectors that are currently showing high job growth.
This includes information technology (36%), healthcare (23%), communication services (17%), and consumer discretionary (12%).
For more news, information, and strategy, visit the Entrepreneur ETF Channel.
