This month, the DCR TrendLine editorial staff decided to deviate from our standard practice of highlighting one industry. Instead, to close out the year, we take a look at employment trends and hiring predictions for a few key industries that we’ve discussed throughout 2015.
Information Technology Industry
Through our analysis, we expected hiring in the information technology (IT) industry to increase throughout 2015. The continued low unemployment rate in the industry of 2.9 percent means that hiring managers will have difficulty finding talent in the upcoming year. On a year-over-year basis, IT employment has grown by 2.88 percent since May 2013, adding 130,100 workers. As companies continue to increase their reliance on technology solutions, industry experts expect that IT hiring will increase substantially in 2016.
Employment and output in the industry are projected to grow rapidly through 2020, outpacing similar professional industries and the economy as a whole.
Current IT Job Trend
Financial Activities Industry The financial activities industry saw little increase in employment with 5,000 jobs gained in October 2015, according to figures from the U.S. Bureau of Labor Statistics (BLS). The average over-the-month change for 2015 of 11,000 jobs added falls in line with the average change from 2014. Over the past 12 months, the financial activities industry has added 159,000.
Financial Activities: DCR Index vs. Actual Trend
Real Estate Industry
Real estate markets across the country are expected to return to a state of balance. Stan Humphries, chief economist at Zillow.com, predicts that home value growth will slow to around 3 percent per year, and negotiating power will move back to buyers and away from sellers. A report by CoreLogic indicates that home sales increased by 9 percent in 2015, and home prices will grow by 4.5 percent nationwide.
In 2016, foreign investors will still find high-end American real estate appealing due to economic turbulence in their home countries. Buyers from outside the U.S. are expected to use their properties as a rental, a secondary residence used for travel, or a residence for children studying at American universities.
For several years, many millennials have postponed home ownership in favor of renting, but this will likely change in 2016 as a growing number start families and seek more stability. Baby Boomers are also more likely to move in 2016, downsizing their homes as they retire or move closer to children or grandchildren.
DCR TrendLine Real Estate Employment Index vs. Actual Trend in Real Estate