This week we drill down to the industry scale in New Jersey. The information presented in this post pertains to similar industries grouped together under 4-digit North American Industrial Classification System (NAICS) codes. The intent is to highlight information that may not be noticeable when observing the higher level, or sector resolution, from last week. Location quotient information is not available at this level of resolution, so instead of location quotient, this week we show the average earnings in each sector on the y-axis, and the x-axis still shows the percent change since 2009.
You can flip between two tabs: one with the full extents and the other zoomed in. Change tabs by selecting them in the upper left corner.
In order to observe the outliers, we begin looking at the farthest extent of the bubble diagram (the “Extremes” tab in the upper-left). We can see that staffing agencies constitute the state’s fastest growing industry. Staffing agencies are becoming more and more important in the economy, employing not only unskilled laborers but also skilled contract employees. The next two fastest growing industries are department stores and elementary and secondary schools. The department store industry is just one of a number of service industry sectors showing growth. As we saw last week, education is a growing industry in the state, but New Jersey is still catching up to the national average concentration of teachers.
Zooming in to get a closer look at the sectors (the “detail” tab in the upper-left side), you can better see the cluster of service industries in the lower right-hand side of the diagram. These jobs typically pay less than $35,000 a year. There are, however, higher paying growth industries as well, such as the technology cluster indicated on the chart. Although these technology jobs do not fit neatly into a 2-digit sector classification, you can make out the cluster at the 4-digit level of resolution. Some of the declining industries include pharmaceuticals and research, two well-paying industries. Government support and general medical and surgical hospitals are well-paying middle class industries, but they are both experiencing a 1% decline over the past 10 years. Another interesting loss is clothing stores, which have contracted by 1.6%, as opposed to other service industry jobs that have grown, such as department stores.
Next week we will conclude this series on industries by showing the size of firms. This analysis will reveal which industries foster the most small businesses, and which industries are consolidated into large firms.