8 RISING INDUSTRIES
According to“ West Virginia Economic Outlook 2017-2021,” service-providing sectors will experience the most job growth, specifically professional and business services, education and health services, leisure and hospitality, trade-transportation and utilities, government, construction, natural resources and mining and manufacturing. Here we take a look at these eight rising industries and the role they will play in West Virginia’ s future.
Professional and Business Services
In the next five years, the professional and business services sector is expected to add jobs at a pace of more than 1.7 percent per year. Much of this growth is expected to come from increased contract labor utilization by natural gas producers and field support services firms, but the gas industry’ s improved prospects should also bolster demand for engineering, legal and other consulting industries.
Education and Health Services
Thanks to steadily growing demand for health care, education and health services will see employment grow at an average rate of 0.7 percent.
Leisure and Hospitality
Leisure and hospitality is expected to enjoy job gains of nearly 0.7 percent per year through 2021, with the food services and drinking places sector likely growing faster than the accommodation sector.
Trade-Transportation and Utilities
Retail will likely see moderate improvements of 0.3 percent per year through 2021, while wholesale trade and transportation and warehousing sectors are expected to see job growth proceed at roughly 0.4 percent. In addition, transportation companies that provide services to natural gas rigs and well sites will benefit from the anticipated growth in drilling activity.
Government
Government employment is projected to eke out a minimal increase as the structural budget issues facing the state government will likely limit any potential hiring activity and many local governments are dealing with shrinking tax bases and a lower level of receipts from coal severance tax allocations.
Construction
The construction sector is expected to get a major boost in the coming years. The forecast calls for the sector to grow on average 2.2 percent annually through the end of 2021. Much of the growth will occur between 2017-2019 as the energy industry will see several key projects proceed. Reconstruction in the areas affected by the June 2016 floods will also bolster activity over the next year or so. At the same time, major commercial projects as well as several major projects by WVU will continue to add tens of millions of dollars more in spending during the next few years. The forecast also calls for single-family housing starts to rise at approximately 6.5 percent per year through 2021.
Graph 2.13 WV Employment Growth Forecast by Sector
SOURCE: U. S. Bureau of Labor Statistics and WVU BBER Econometric Model
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