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Thursday, April 5, 2012

What Do Beauty Salons Tell Us About The Economy?

(AP)

Businesses like restaurants and beauty salons may be the future of American jobs, according to Dan Gross, economics editor for Yahoo! News.

He says restaurants, landscaping companies and salons are immune to mechanization, automation and offshoring.

“They have not figured out machines to give people manicures, so when you get a lot more business you have to hire people,” he said.

“They have not figured out machines to give people manicures, so when you get a lot more business you have to hire people.”

– Dan Gross, of Yahoo! News

Gross says these industries will fuel coming job growth.

“When people are wondering, when are all the jobs going to come back, where are they going to come from, it’s in these services where the business owners aren’t that great at figuring out productivity solutions and where they can’t offshore the job to China or Mexico.”

But don’t quit your day job to work at a salon just yet. The type of jobs staying in the U.S. are not just at restaurants and salons.

“It’s also the plumber, the mortgage broker, the lawyer… the movers, the people at Home Depot. All of things are by definition, really intensely local jobs,” he said.

Gross says that spending on services is the first to fall when the economy is doing poorly, it’s also the first to rise when people are feeling more optimistic.

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