Study: Travel is one of the nation’s largest job creators

People’s love of travel helps make it one of the nation’s biggest job creators, according to a study released today by the U.S. Travel Association (USTA).

The study , which analyzed data from the U.S. Bureau of Labor Statistics, found that the number of travel jobs rose 17 percent from 2010 to 2016 vs. a 13 percent increase for the rest of the  private employment sector.

USTA CEO Roger Dow said the travel industry often is an “under-appreciated” economic booster.

Last year, the economic output generated by U.S. and international visitors totaled $990.3 billion in direct spending and $1.3 trillion in indirect spending, according to USTA data. The tourism industry generated $157.8 billion in federal, state and local revenue.

Growth in travel is fueling such spending. This year, the number of global outbound trips is forecast to grow between 4 percent to 5 percent, driving by travel to Asia and the United States, according to the ITB World Travel Trends Report 2016/17.

The travel industry directly supports 8.6 million jobs plus 6.7 million jobs in other industries, according to the USTA. Dow noted that travel is a “good” jobs with career advancement opportunities.

Here are some other highlights of the new USTA study:

  • People whose first job was in a travel-related industry reach an average career salary of $81,900 — significantly higher than those whose first job was in nearly any other U.S. industry.
  • Nearly 40 percent of workers who started their career in travel reached an annual career salary of over $100,000.
  • The travel industry is a better career starter for people with less education: Workers with a high school degree or less whose first jobs was in travel reached an average career salary of $69,500, 5 percent higher than the average salary of those who started out in other industries.
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Got job? Millennials remain optimistic, new study finds

Even though millennials see higher unemployment rates, many remain optimistic about their job prospects, according to a new Federal Reserve Board report.

fed-report-chart

Factors, such as automation and the trend of contingent workers, have affected employees, especially millennials who are the newest entrants to the workforce.

The Fed used unemployment rates from August, when the U.S. rate was 4.9 percent. (See chart at right.) The rates were lower in November, but the trends are similar: The jobless rate was 14.4 percent for people 18-19, 4.8 percent for those 25-34 and 4.6 percent for the nation, according to data the U.S Bureau of Labor Statistics.

The Fed commissioned GfK to survey over 2,000 people in 2015 to compare to a similar poll in 2013. The 120-page report provides a snapshot of the employment, education and financial independence of people age 18 to 30.

Overall, those adults were more optimistic about future job opportunities in 2015 (61 percent) than in 2013 (45 percent). Moreover, people who were employed, enrolled in college or who had some college education were the most optimistic.

And, as other surveys have shown, millennials aren’t so different from earlier generations in wanting employment stability. They prefer permanent, steady jobs (62 percent) to higher-paying  jobs (36 percent) and to contingent or contact work.

Other key findings from the 2015 survey include:

  • 61 percent are positive about future employment opportunities vs. 45 percent in 2013. People with permanent (68 percent) or full-time (65 percent) jobs were more optimistic about their future than those with temporary (43 percent) or part-time (54 percent) jobs.
  • More millennials see value in higher education than in 2013. Half said the financial benefits of education outweigh the costs, up from 41 percent in 2013. Despite that knowledge, people without postsecondary training list cost, a lack of time and course scheduling as obstacles.
  • Over 30 percent didn’t not receive information about jobs/careers in high school or college.fed-living-expenses
  • 45 percent work in a field closely related to their educational and training background.
  • Nearly half of part-time workers were considered underemployed, and would prefer to work more hours.
  • 73 percent can cover monthly expenses with their income vs. 64 percent in 2013, but many receive financial support from their families. And more of them can cover long-term expenses in an emergency (See chart at right.).

The bottom line: Most millenials aren’t sure how their standard of living will stack up against their parents’, according to the survey. Those whose parents have a high school education or less are more likely to expect a higher standard of living (19 percent) than those with at least one parent with a bachelor’s degree (17 percent).

States see steady employment

New government data shows what the Federal Reserve leaders recognized earlier this week: steady employment trends in most states through November.

In a long-expected move, the Fed’s policy setting committee on Wednesday raised interest rates by 0.25 percent to 0.75 percent. Among its reasons were a labor market that has continued to strengthen and economic activity that’s expanded at a moderate pace since the middle of the year.

California leads national employment gains with 377,200 new jobs for the 12 months through November, according to data released today from the U.S. Bureau of Labor Statistics. Overall, 31 states plus Washington, D.C., added jobs over the last year, Wyoming lost jobs and employment was about the same in 18 states.

You can see state-by-state data in an interactive graphic I made with Tableau Public. Just scroll over each circle to see the employment data.

For the month of November, employment was virtually unchanged n 39 states, nine states added jobs and two states lost jobs. Florida added most jobs (+29,600) and Virginia lost the most jobs (-13,600). California added 13,600 jobs last month.

The nation added 178,000 jobs in November, with most gains in professional and business services and health care, and 225,300 over the last 12 months.