Tech Analyst Jeff Kagan | Comment on Wireless Jobs Disappearing

Print  | 

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!

* * * * * * * * * * * * *

These comments may be quoted in news stories.

Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com

To be added or removed from this mailing list for comment, please send me an email.

* * * * * * * * * * * * *

Jeff KAGAN| TECH ANALYST | www.jeffKAGAN.com

Wireless, Telecom, HealthTech, CableTV & IPTV, Technology

Phone 770-579-5810 Email jeff@jeffKAGAN.com

- Analysis and opinion on the changing industry

- Columnist, Author, Consultant, Speaker

- Column http://www.ectnews.com/perl/section/jeff_kagan/

Other press releases from Jeff Kagan

• Comment on Cable TV Offering Wi Fi | Jeff Kagan Tech Industry Analyst - May 21st, 2012
• The Future of AT&T | Contribute to New Book by Jeff Kagan - May 18th, 2012
• Best Wireless Carrier Study Analysis | Jeff Kagan Tech Industry Analyst - May 16th, 2012
• Will Facebook Still be Strong in Five Years? | Jeff Kagan Tech Industry Analyst - May 16th, 2012
• Is Yahoo! Scott Thompson Just the Beginning? | Jeff Kagan Tech Industry Analyst - May 15th, 2012