This is the time of the year where scores ( if not millions but in high hundred 1000s range) of young, restless, ambitious, smart, enterprising graduates all across US universities are preparing their resumes, attending job fairs at their campuses, scanning the job market to launch their careers and embarking on a looooooooong 40-45 years/4 decades journey into professional world.
The US is predominantly a services-based economy:
US GDP in 2018 is $20+Trillion. We are on our way to hit GDP of $21+Trillion around Q2 of 2019. That $20+ Trillion GDP generated by US in 2018 is made up of approximately 70-75% services economy based jobs (non-physical goods producing works - like investment bankers, security lawyers, accountants in wall street, coders and venture capital firm analysts in silicon valley, geologists for oil companies in Texas, designers for architectural firms building investment properties in Florida, sales and marketing folks etc., etc., )
Non-services-based jobs
The remaining 25-30% of physical goods-production/non-services economy based jobs are kept in the US for national security, maintain intellectual property supremacy and world trade dominance reasons.
US GDP in 2018 is $20+Trillion. We are on our way to hit GDP of $21+Trillion around Q2 of 2019. That $20+ Trillion GDP generated by US in 2018 is made up of approximately 70-75% services economy based jobs (non-physical goods producing works - like investment bankers, security lawyers, accountants in wall street, coders and venture capital firm analysts in silicon valley, geologists for oil companies in Texas, designers for architectural firms building investment properties in Florida, sales and marketing folks etc., etc., )
Non-services-based jobs
The remaining 25-30% of physical goods-production/non-services economy based jobs are kept in the US for national security, maintain intellectual property supremacy and world trade dominance reasons.
The US has outsourced non-critical jobs over several decades:
So for the most part, the US has outsourced the businesses that are highly capital intensive, produce lower margins/profits, and those that involve high execution risk to other parts of the world. These businesses typically create jobs that produce physical goods such as making auto parts, computer & mobile chips, furniture, toys etc., etc. Additionally, labor-heavy agricultural jobs are shipped to countries where low skilled labor force is plentiful and high skilled labor force is still evolving.
So for the most part, the US has outsourced the businesses that are highly capital intensive, produce lower margins/profits, and those that involve high execution risk to other parts of the world. These businesses typically create jobs that produce physical goods such as making auto parts, computer & mobile chips, furniture, toys etc., etc. Additionally, labor-heavy agricultural jobs are shipped to countries where low skilled labor force is plentiful and high skilled labor force is still evolving.
The big takeaway:
US GDP growth rate and the job creations are closely linked. For the young, restless, newly minted US college graduates, getting good jobs in the US will largely depend upon the year-over-year GDP growth of the US economy in the services sector.
A remarkable US GDP growth pattern:
Based on the Q3 2018 reading of the US government's official number keeper, the US Department of Labor, the US economy grew at a robust 3.5% in the third quarter, and then hit a mild slowdown from 4.2% in the second. Now, the US economy has grown by 3% over the last 12 months.
Based on the Q3 2018 reading of the US government's official number keeper, the US Department of Labor, the US economy grew at a robust 3.5% in the third quarter, and then hit a mild slowdown from 4.2% in the second. Now, the US economy has grown by 3% over the last 12 months.
Why the College kids should feel lucky?
The U.S.'s GDP hasn’t grown at 3% rate in a calendar year since 2005, but that is now achievable this year which is great news for the college kids. The growth means 2 or 3 job offers for students to choose from.
Since 2005, even with less than 3% GDP growth rate, there has been a remarkable continuous streak for 94 months of job creations. Just imagine how many jobs will be created from a GDP growth rate that is greater than 3%, or even 3.5 %
Chances are extremely high that these ambitious college kids, who are graduating in 2019 summer from US universities, will receive great offers and be on their way to launch their 4 decades or so long career journey.
Good luck to them.
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