100 Years Later: How the Job Market Has Changed
Are you ready for a history lesson? Yes? Great! No?...We’re sorry, hope you’ll read on anyway! Today, we’re taking a step back in time to the dawn of the roaring twenties. Yes, the 1920’s... think Gatsby, flappers, prohibition, and the Great Depression. Except in this blog, we’re leaving good ole’ Fitzgerald at the door and we’re focusing in on the Job Market. In just a few short weeks we will be entering a brand new decade, a hundred years post the Golden Twenties of the 20th century. We’ll take a look at what the job market looked like a hundred years ago and compare it with today’s market to see how far we have or haven’t come. As the ever notorious Gatsby would say, “come along, old sport”.
What the Job Market Looked Like in 1919 into the 1920’s
The 1920’s was an age of great success, patriotism, and brief economic bliss. Many were coasting on a high from the subjective success of World War I due to the economic downfall of Europe. This put the United States at an economic advantage and stabilized us as a global power. Infact, during this period, America turned from a traditional market to a free market economy with an economic growth of 42 percent.
The stock market increased in value by 20% a year with the official steady rise occurring in ‘24. Furthermore, the number of shared that were traded doubled to nearly 5 million per day--that’s insane! (The Balance) According to an academic source, “an economic shift took place as the economy transitioned from wartime production to peacetime production. New technologies like the automobile, household appliances, and other mass-produced products led to a vibrant consumer culture, stimulating economic growth.” Another industry that began to boom during this time was the advertising industry: the “demand for a multitude of new products that emerged in the 1920s was pumped up by a new industry, advertising, which developed new methods of enticing buyers to desire new products through new media like the radio. The advertising industry grew in perfect harmony with the emerging industries of mass culture—especially network radio and Hollywood cinema” (Shmoop). Finally, a huge accomplishment for this era was a freer America for women as they were allowed to vote, ratifying the 19th amendment, and also were allowed more freedom on the job market. Let’s take a look at some of the most popular jobs for men and women, some even include the annual salary for comparison.
Popular Jobs for Women during 1919 into the 1920’s
Department Store Sales Clerks
Working on the Land
Secretarial and Office Work
Telephone Switchboard Operators($1,872/yr)
Jobs in Medicine
Cook ($292/yr)
Maid ($592/yr plus board)
Flapper-Style Dress Maker ($1,496/yr)
Knocker-Upper (someone who woke up working folks by tapping on their windows at dawn)- $9,482/yr
Popular Jobs for Men during 1919 into the 1920’s
Salesman- ($6,500/ yr)
Ford Factory Worker- ($1,300/ yr)
Banker- ($631/ yr)
Silent Movie Actor- ($156,000/ yr)Wheat Farm Laborer- ($402/yr)
Banker- ($631/yr)
The Issues
Obviously the elephant in the room during this economic high is the looming great depression on the horizon. While the average income rose almost 2k per person, the number was not evenly distributed due to the recession of 1920. This began early on in January with the “highest marginal tax rate at 73% for those making more than $1 million with almost 70% of federal revenue coming from income tax. (TheBalance) On top of that, the Volstead Act banned alcohol in any capacity that same month on January 16th. “That led to an underground economy as people flouted the law” (TheBalance), which inadvertently allowed for corruption within the people literally from the underground, up.
All of these issues perfectly set up the 20’s downfall of the Great Depression. In fact, according to Shmoop, rural America was most likely the first to take this hit early in 1920, not 1929. The source believes that the depression, for agriculturists, lasted for an entire generation due to the great urban prosperity that greatly distracted from rural life.
What the Job Market Looks Like Today, 2019 into 2020
While some details of today's job market are drastically different, much of the trends during the 1920’s are popping up here and there one hundred years later. One key difference today that wasn’t mentioned at all in the 1920’s is the emphasis on the college degree in today’s job market. In fact, those with a college degree find that the unemployment rate is noticeably lower, which then puts the earnings from those jobs, at a higher rate. Moving forward, those graduating during a strong labor market, like that of today, find that they “will earn more throughout their careers than those who graduate during a recession. And when recession eventually does hit, people with college degrees are more protected; during economic downturns, people without a college degree are at greater risk of unemployment.” (HBR) In fact, in a recent quote by the NYTimes, the “American job market is steady and solid, and not flashing any reason for panic.” This is especially true when looking at the amount of available jobs. In that same NYT article, as of July 2019, the Labor Department reported that “employers added a robust 224,000 jobs”, with a specific mention of the manufacturing sector which added a whopping 17,000 jobs!
Speaking of employed persons, the unemployment rate in the US dropped from 5.3% to 3.6% in the last year alone. And, according to a chart from August, the number of employed persons in the US rose to a jaw-dropping 155.76 million people--that’s 2 million more people than 2018 and almost 20 million more than 2010.
Popular Jobs in 2019 into 2020
Thanks to tremendous progress years ago, the jobs listed for men and women need not separation! Although some debate still remains on the subject, for the most part, men and women have equal opportunity to work the same jobs and should receive equal pay. According to HBR, “recent grads are more likely to click on jobs in the arts and entertainment, as well as social service, than they were a few years ago. Conversely, they’re less likely to click on postings for quant-focused and financial roles.” Here are a few more popular jobs and their potential median-salaries:
Physician ($193,415/yr)
Pharmacist ($126,438/yr)
Dentist ($142,487/yr)
Physician Assistant ($113,855/yr)
Software Developer ($101,790/yr)
Accountant ($69,350/yr)
Civil Engineer ($84,770/yr)
Salesmen ($60,000/yr)
The Issue
While much like the 20th century, everything seems to be coming up roses as we enter the new decade. However, no job market is perfect, including ours. A few issues that we currently face include, most importantly, the tightness of the market. According to the Bureau of Labor Statistics, the number of lay-offs/firings seems to remain pretty stagnate throughout a 15-year period. However, the number of ‘quits’ is increasingly high. The number rose over a thousand over that same 15-year period. This means that “not only are employees leaving their existing jobs for better opportunities, but that as an employer, you must anticipate filling even more roles--some preemptively.” (Recruiting.com) To push the issue an inch further, due to the number of open positions, we, as a nation don’t have enough active or passive candidates to fill all of them! While this is not great for businesses, it is great for the candidate as it gives them a ton of leisure and plenty of options to choose from when/if they begin the job search, which could leave your positions permanently unfilled.
What other interesting similarities and differences do you see between the two? Let us know! And, for more information on our job market and a potential recession, check out our blog titled “A New Recession: Fact or Myth”.