Where You'll Find a Job In 2003

Jan. 16, 2003 -- It is no mystery. Unemployment is persisting into the New Year. In fact, companies such as Kmart are picking up exactly where they left off in 2002 — with closings and layoffs.

The Kmart Corporation announced Tuesday that it would be closing 326 stores and cutting up to 35,000 jobs in its struggle to get out of bankruptcy.

This is the second round of closings for the chain discount store, with the first cuts eliminating 22,000 jobs and shutting the doors on 284 stores in March of 2002.

So with news of such massive layoffs, one would think this is neither the time nor the place to look for a job. However, inside this dark unemployment cloud there are actually some areas in the market that are expanding and hiring.

Think Small

When looking for a job in today's market, think small. People have a tendency to think of big companies first in their employment search. Instead, take the road less traveled where you are not only likely to have less competition, but where you'll also find more businesses in a position to hire.

Smaller companies tend to lead the curve on hiring following a recession and are faster to ramp up or down because they are more nimble. In fact, small businesses are often the economic powerhouses which provide the economy with a wealth of jobs.

Instead of relying on temporary hires or part-time employees, smaller companies generally fill their positions with full-time employees. According to Manpower, Inc., the hiring outlook for small companies has improved this year with 20 percent of employers expecting to hire more people in the first three months of 2003. About 12 percent intend to reduce their work force.

One way to get to those bite-sized businesses is to scan the membership directory of your local chamber of commerce via the Internet or at your local public library.

Prescription for Employment

If you are currently in school and undecided about a major or are unemployed and considering returning to school for additional education, a pharmacist or nursing degree may be the perfect prescription for your potential employment ailments.

With an aging population and more and more prescription drug offerings, the pharmaceutical industry is struggling to meet the growing demand. Currently, there are roughly 200,000 licensed pharmacists in the United States — not enough to fill all outstanding prescriptions. According to the National Association of Chain Drug Stores, as of July 2002, there were almost 5,500 vacancies in drugstore chains alone.

A shortfall of as many as 157,000 pharmacists is predicted by 2020 according to the Pharmacy Manpower Project, Inc.

The fact pharmacies are struggling to fill their positions, given the current economy and the average salary for the industry $68,215, is quite surprising. And unlike the trend in other graduate schools such as law and business where their graduates are struggling to find jobs nonetheless a signing bonus, students who graduate with a degree in pharmacy are frequently enticed with multiple job offers and signing bonuses.

According to the American Association of Colleges of Pharmacy, the national organization which represents all 83 U.S. pharmacy colleges and schools (www.aacp.org), a degree program requires at least two years of specific undergraduate coursework. Once that is complete, you must attend a four-year professional pharmacy program.

Likewise, the demand for nurses is high in all major cities in the United States, with hospitals, long-term care facilities, home visitation organizations and doctors' offices indicating they are actively seeking nurses.

Currently, there are more than 120,000 open positions for registered nurses (RNs) nationwide, with California, West Virginia and Florida having the highest shortages. To make matters worse, this nationwide shortage is expected to increase to 400,000 in the next 20 years.

To reduce their shortages, some states are attempting to recruit and retain nurses by offering attractive incentives through partnerships with various organizations. For example, to attract nurses, the state of Florida has partnered with Fannie Mae to promote 100 percent financing for home loans to nurses, as well as with Education Funding of the South, Inc. to offer Florida nursing students or graduates working in the state very attractive repayment interest rates for their student loans.

Generally speaking, it can take anywhere between one and four years to become a registered nurse, depending on your educational background. The costs of nursing programs vary, but many hospitals have scholarships and forgivable loan programs.

According to Allied Physicians, a nursing employment service, the national average nursing salary is $45,500. Nurses, with graduate degrees and in specialties like cardiac care can make upwards of $60,000. In addition, due to the dire shortage, some hospitals now offer onetime signing bonuses of $10,000 and referral fees to current nurses for finding others.

Jobs to Plug Into

As the population and economy grow, more electricians will be needed to install and maintain electrical devices and wiring in homes, factories, offices, and other structures. Beyond the new brick and mortar, new technologies will continue to drive the demand for electricians. As most new construction is now pre-wired, and existing construction is given a face life with fiber optic cable for computers and telecommunications equipment, as well as complex safety and security systems, this field is hotter than ever.

According to the National Electrical Contractors Association (www.necanet.org) the industry employs over 650,000 electrical workers and produces an annual volume of more than $95 billion. However, there is significant room and need for more electricians. In fact, the NECA estimates 80,000 more electricians will be needed in the near future.

The course of study for an electrician usually involves a four- or five-year apprenticeship program before graduating to an experienced level. In 2000, median hourly earnings of electricians were $19.29, with apprentices earning 30 percent to 50 percent less.

Although a formal apprenticeship is not always a prerequisite for employment, it is a means to becoming a member of the International Brotherhood of Electrical Workers or other related unions which offer increased job security and excellent retirement benefits. According to salary.com, an electrician (depending on seniority and skill level) makes an average of $48,623 a year.

It Pays to Teach

The nation's public schools expect to need more than 2.4 million new teachers by 2012, almost as many as the 2.8 million currently working in today's classrooms. In particular, math and science departments are in great need of qualified teachers — an excellent opportunity for many tech-savvy (but unemployed) dot-com workers.

School districts, faced with this teacher shortage, have created alternative certification methods which allow individuals to transfer from prior, unrelated careers with ease. Now, in most districts, new teachers are hired under the assumption they will take the necessary course work within two years of their hiring to fulfill the standard requirements.

Teaching is an excellent career where people can transition from other areas of expertise with greater ease — especially in America's largest cities where signing bonuses and relocation packages are now used to entice talent. In Chicago, for example, a professional new to the teaching field can enroll in a six-week summer program (at minimal cost) and take education classes concurrently while they teach to earn their certification.

A typical high school teacher working in Chicago earns a median base salary of $48,671 (according to salary.com).

Keep on Trucking

According to the U.S. Department of Labor, truck driving is one of the fastest growing occupations. In 2000, truck drivers accounted for about 3.3 million jobs in the United States. The need for additional truck drivers is expected to increase by 10 percent to 20 percent each year through 2010.

To qualify for a trucker's license, you must pass a written test on the rules and regulations and demonstrate you can safely operate a commercial truck. In addition, some states require prospective truckers to attend a basic training course prior to taking the examination.

The median hourly earnings of heavy truck and tractor-trailer drivers were $15.25 in 2000. Some truck drivers are members of various unions which provide the added plus of retirement benefits and increased job security. According to salary.com, a heavy truck driver makes an average annual salary of $34,539.

Privacy Wanted

Thanks to a handful of new laws enacted to protect consumers from credit fraud and identity theft, corporate America is in need of privacy officers. Instead of just the CEO's, COO's, and CIO's, the new era now includes a CPO-Chief Privacy Officer. In fact, positions dedicated to protecting consumer identity will account for an additional 30,000 new hires by 2006, according to the recruiting firm Privacy Leaders.

For example, by April, health-care providers will be required to appoint an employee, or hire a new one, to oversee the safeguarding of patient data. While many of these new positions are targeted at the executive level especially from within the legal profession, it is predicted the fastest growth will be in entry-level and mid-level jobs such as project managers and compliance officers which offer annual salaries between $40,000 and $80,000 a year.

In addition, finance, marketing and technology companies may have to hire entire departments dedicated to customer privacy. Already, companies such as American Express, IBM, Proctor & Gamble and AT&T have hired chief privacy officers.

Homeward Bound

In 2002, home sales hit an all-time record with 5.56 million existing home sales and 979,000 new home sales with refinancing accounting for 74 percent of the mortgage applications.

The Mortgage Bankers Association of America predicts that when all the numbers come in from 2002, refinancing will equate to $1.4 trillion worth of business. Additionally, mortgage refinancing accounted for 20 percent of real economic growth since 2001.

As a result of this incredible boom, more than 100,000 new jobs were created in the mortgage banking and mortgage brokerage industry in 2002. There were 7,000 new jobs created in December alone.

The demand has spread beyond mortgage brokers to loan processors, closers, underwriters and appraisers. The National Association of Realtors says home sales are expected to slow this year, but they will continue to be strong and are likely to record their second-best showings.

NAR estimates there will be 5.34 million existing-home sales and 941,000 new-home sales for this year. This being the case, the need for people in this sector will continue to grow.

Secure Employment

The federal civilian work force of about 2.7 million, which shrank through the 1990s, is expected to expand by tens of thousands of jobs. The Transportation Security Administration, for example, has already hired over 50,000 federally employed airport screeners to examine airline passengers checked bags.

The average salary of these new screeners ranges from $23,600 to $35,400 a year and includes federal health insurance, life insurance, retirement benefits, paid vacation and sick leave.

Women looking for work in this sector, they may find themselves in an excellent position. According to published reports, the Transportation Security Administration has struggled to reach their goal of hiring a workforce consisting of 50 percent of females and, in fact, lowered their target to 33 percent of their work force.

Also, firms that provide security systems for buildings are likely to prosper in the months ahead and are good places to look for employment. Firms which specialize in closed-circuit television cameras, software and security-related equipment, continue to experience growth following the events of Sept. 11.

Nationwide, office buildings have stepped up their security tenfold since Sept. 11 — a huge employment lift. New York's Empire State Building has increased security personnel by 25 percent and added scanning machines at all five entrances at a cost of several million dollars. On average, building security guards in major cities make $12 to $14 per hour.

Location, Location, Location

Since the dot-com demise, Silicon Valley has not been anything but a hot bed for new jobs. However, on the opposite end of the country, in the Northeast and Southeast businesses are experiencing the normal 20 percent upturn typical in an economic recovery.

Likewise, with the events of Sept. 11, financial companies pulled back on their hiring and many New Yorkers moved out of the city looking for a change in zip code. More than a year after the tragedy, the employment picture in New York City looks brighter.

According to a survey by The New York Times Job Market, 52 percent of interviewed New York metropolitan employers expect to increase their staffing levels in 2003, with only 9 percent indicating they would experience reductions. Surveyed employers report that the greatest number of new jobs will be in sales/marketing and management, as well as administrative and entry-level positions.

Need Not Apply

On the flip side, sectors planning to maintain or reduce their current staffing levels include companies which manufacture consumer goods (such as vehicles and household appliances); suppliers of retail products and retail stores; as well as state and local government offices. State governments, for example, are faced with major budget deficits and in many instances are carefully sorting combing through their payroll's to determine where deductions can be made.

One provision of President Bush's proposed economic stimulus package could be very helpful for those who remain on the employment sideline. Under the Bush plan, certain unemployed workers would get "re-employment accounts" of $3,000 each that could be used to cover the costs of finding work and as an incentive to get a new job quickly.

The money, which would be in addition to regular unemployment benefits, could be used for job training, child care, transportation, moving costs or other expenses. If you are able to find employment within the given thirteen weeks, and hold on to the job for at least six months, consider the account as an additional signing bonus because whatever is left over is yours to keep.

E-mail Mellody with your personal finance questions.

Mellody Hobson, president of Ariel Capital Management in Chicago, is Good Morning America's personal finance expert. Click here to visit her Web site, ArielMutual Funds.com. Ariel associates Matthew Yale and Aimee Daley contributedto this report.