US recession takes toll on media and advertising jobs

by Staff, Brand Republic 09-Feb-09, 09:00

NEW YORK - The US media and advertising sectors shed 65,100 jobs in 2008 as newspapers getting rid of one in ten workers and online media the only area where employment increased.

According to research by AdAge, US media and advertising industries have cut 3.9% of their workforce since December 2007, higher in percentage terms than the 2.6% average cut from the overall American workforce.

Internet media companies remain one of the only sectors escaping unscathed, adding 5,400 jobs during the same period, a growth of 7%, bringing total employment to 82,200, its highest level in seven years.

Traditional media was hardest hit during 2008, eliminating 4.6% of staff, accounting for 41,000 US jobs.

Nearly one in ten newspaper employees were made redundant in 2008, as 31,200 jobs were cut across the flailing US print industry. Magazine publishers dropped an additional 4,500.

Radio cut 8,100 jobs and broadcast television laid off 5,100, while cable TV bucked the trend, adding 2,500 jobs.

The advertising and marketing sector slashed 24,100 jobs during the same period, a drop of 3.1%.

Six thousand staff were cut from ad and marketing firms in 2008, and graphic design companies cut 7,400 staff, nearly 10%.

Marketing consultancy firms added 2,200, as did public relations agencies, adding 1,200 more.

The recession has cost 3.6m Americans their jobs so far, with nearly half of those coming since November 2008. In January, US unemployment hit 7.6%, its highest level since 1992.

Comments

Danish Bagadia - 09/02/2009

Considering the shift of marketing budgets from offline to online, it makes sense that internet media companies has had a growth in employment figures. it will be interesting to see when this recession will impact the online companies hard.

Mark Palmer - 09/02/2009

What will happen is that the shift will not be about old vs new media - but about how good your business model is. Problem for newspapers is the cost base cannot compete with the income. For online this should be easier - but still quite a few online ventures where you struggle to see the business model. Too many say advertising and haven't a clue how.

A Y - 10/02/2009

Wonder if ad folks all over the world will finally learn their lesson? Too many clueless suits and award-hungry scam-ad creatives are now taking senior roles in major agencies not generating value and results for advertisers. So, why would clients still risk their precious dollars on traditional advertising, or advertising per se? More people are going online, lesser are spending money on traditional entertainment and leisure... Didn't anyone see it coming? Or maybe we just had it coming. Go guys, go get that award with that fake ad that generated fake sales figures... with permission from clients, of course... And suits, go for that alternative high-paying job offer telling them just how you created miracles for that client. After all, when you do get caught, there's always that other agency to go to. Perhaps we'll never learn.