February 23, 2004

A PRETTIER JOBS PICTURE: Virginia Postrel in the NYTimes: …In a quickly evolving economy, in which increased productivity constantly makes some jobs redundant, we notice the job losses. It is much harder to spot where new jobs are emerging. Our mental categories tend to be behind the times. When we think of jobs, we see factories, secretarial pools, police officers, lawyers. We forget all about jobs we see every day.

The official job counters at the Bureau of Labor Statistics don’t do much to overcome our blind spots. The bureau is good at counting people who work for large organizations in well-defined, long-established occupations. It is much less adept at counting employees in small businesses, simply because there are too many small enterprises to representatively sample them. The bureau’s occupational survey, which might suggest which jobs are growing, doesn’t count self-employed people or partners in unincorporated businesses at all. And many of today’s growing industries, the ones adding jobs even amid the recession, are comprised largely of small companies and self-employed individuals. That is particularly true for aesthetic crafts, from graphic designers and cosmetic dentists to gardeners. These specialists’ skills are in ever greater demand, yet they tend to work for themselves or in partnerships. …

It is tempting, of course, to treat these undercounts as trivial. After all, what do 200,000 massage therapists or 300,000 manicurists matter in a country of 290 million people? But this list of occupations is hardly comprehensive. In every booming job category I looked at, official surveys were missing thousands of jobs. As the economy evolves, however, this bias against small enterprises and self-employment becomes more and more significant. By missing so many new sources of productivity, the undercounts distort our already distorted view of economic value — the view that treats traditional manufacturing and management jobs as more legitimate, even more real, than craft professions or personal-service businesses. But the truth is, value can come as much from intangible pleasures as it can from tangible goods.

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Via Hit & Run.


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