Atlanta, GA, July 18, 2011 — Comment from Jeff Kagan, Tech Analyst at www.jeffkagan.com .
Comment on Wireless Jobs Disappearing
It is shocking to hear that as the wireless industry continues to grow, workers are being cut. The last year was another record year for industry growth, but jobs in the US fell to 166,600 according to the US Labor Department. Another annual drop of about 2,000 jobs.
The industry has grown revenue 28% since 2006 when employment was at its peak at 207,000 workers.
Traditionally as an industry grows it’s revenues, that translates into job growth. Not here.
Productivity has increased by 24.3%. That’s more than most industries Productivity has tripled since 2002.
This is both good news and it is disturbing. Considering all the growth the wireless industry has seen over time, it is truly amazing they can do this without expanding people. That is good news for investors who like lower costs, but it is also bad news for industry workers who would rather see jobs growing rather than shrinking.
Jobs have been moving to new sectors and new companies in the industry, but not as rapidly as they are being shed in the direct industry.
Keeping costs low has its benefits. It keeps prices low and it keeps investors happy. The problem is is also cuts good jobs at a time when replacing them is getting more difficult because of the economy.
More jobs will be cut when and if AT&T merges with T-Mobile. So we are continuing in the wrong direction.
It would be great if we could add workers as a company grows, and keep costs low.
Is that too much to ask!
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Jeff KAGAN| TECH ANALYST | www.jeffKAGAN.com
Wireless, Telecom, HealthTech, CableTV & IPTV, Technology
Phone 770-579-5810 Email jeff@jeffKAGAN.com
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Contact InformationJeff Kagan
Title: Tech Analyst
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