McKinsey Quarterly

Chart Focus Newsletter
August 2010

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Where are the jobs?

Many governments have been actively trying to promote growth, competitiveness, and employment. But policy makers who hope that advanced “clean” technologies can create work on a large scale will probably be disappointed, because these sectors are just too small to make an economy-wide difference. The local-business and household-services sectors are a much better bet: from 1995 to 2005, services generated all net job growth in high-income economies. Low-tech “green” activities, such as improving the insulation of buildings and replacing obsolete heating and cooling equipment, could generate more jobs than renewable technologies can. To learn more, read “Where the US will find growth and jobs” (March 2010).
Also of Interest

May 2010
After the crisis: Refining Germany’s economic model
A McKinsey report argues that the country should exit the recession by building on its strengths.

February 2010
Five myths about how to create jobs
Job creation is now priority number one in Washington. But America’s jobs challenge is a marathon, not a sprint.

January 2010
The looming deleveraging challenge
Several major economies probably face imminent deleveraging. History suggests that it will be lengthy and painful. [includes related audio]

May 2006
Where US productivity is growing
Although more industries have seen gains, the service sector is still the most important driver.

Did you miss last month’s Chart Focus?

“A generation of overoptimistic equity analysts”
Equity analysts have been overoptimistic for the past quarter century: on average, their earnings-growth estimates were almost 100 percent too high. Except during the 1999Ð2001 bubble, the capital markets have been more realistic.