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Channel: EMSI | Economic Modeling Specialists Intl. » Mark Beauchamp
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The Rise and Fall (and Rise) of Sales Jobs

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Sales jobs aren’t hot and new; they’ve been around forever and can be found in almost every company and industry in the world, so it’s easy to sort of forget about them. Besides that, a career in sales contains certain challenges; you have to sell things, for starters, and your pay is usually very dependent on your sales, which can be daunting.In a recent Reuters article, however, Frank Cespedes digs into Gallup polls, corporate operation costs, and online spending figures to show how salesmen are still highly necessary. We like to write about these jobs because they are growing rapidly in the U.S., they have a low barrier of entry (yet with great opportunities for very high wages), and there are a lot more of them than folks realize.The scope of this article is around people who are front-line sales (which is why we are not including sales managers), as well as those for whom commissions are a sizable portion of their income. We don’t include retail sales because there is no way to differentiate between a retail sales person that might actually fit the criteria and someone who simply operates a cash register.
Employment Figures

U.S. jobs in sales have grown for the past five years—and grown well (12.7%).

new all sales chart
Description 2009 Jobs 2014 Jobs Change % Change Annual Openings
Source: EMSI 2014.3 Class of Worker — QCEW Employees, Non-QCEW Employees, Self-Employed, and Extended Proprietors
Parts Salespersons 213,237 234,242 21,005 10% 10,447
Advertising Sales Agents 231,099 219,280 (11,819) (5%) 9,610
Insurance Sales Agents 960,383 1,192,547 232,164 24% 80,584
Securities, Commodities, and Financial Services Sales Agents 1,035,399 1,196,099 160,700 16% 72,743
Sales Representatives, Services, All Other 966,613 1,004,766 38,153 4% 43,672
Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products 391,573 415,732 24,159 6% 16,028
Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 1,622,073 1,741,735 119,662 7% 66,928
Real Estate Brokers 611,667 716,906 105,239 17% 31,165
Real Estate Sales Agents 3,303,399 3,911,882 608,483 18% 173,470
Sales Engineers 69,827 72,439 2,612 4% 2,479
Telemarketers 255,022 276,336 21,314 8% 12,838
Door-to-Door Sales Workers, News and Street Vendors, and Related Workers 911,496 957,272 45,776 5% 31,481
Sales and Related Workers, All Other 263,648 272,533 8,885 3% 11,196
Total 10,835,436 12,211,769 1,376,333 13% 562,640

Within sales, there are two very clear types of employment: Either you are employed in sales by a company (39% of sales jobs in the U.S. falls into this category) or you are self-employed or another type or proprietor (69%). Employed by a company, you usually draw some amount of wages that are complemented by performance-based commission. Also, there is usually some form of unemployment insurance if you were to lose your job. These kinds of sales positions typically involve one or two of these things: regular hours, a fixed office/place of work, and high technical knowledge—jobs like sales in services, technical, or scientific equipment sales; telemarketing; or parts (usually auto) sales. These jobs are tracked by standard government employment datasets like the Quarterly Census of Employment and Wages (QCEW), which comes from the Bureau of Labor Statistics and tabulates industry employment covered by unemployment insurance.

As you can see in the table below, there has been overall growth in traditional sales employment, with really high growth in insurance sales jobs:
Description 2009 Jobs 2014 Jobs Change % Change Annual Openings
Source: EMSI 2014.3 Class of Worker — Employees
Parts Salespersons 208,107 230,638 22,531 11% 10,278
Advertising Sales Agents 179,256 167,073 (12,183) (7%) 6,792
Insurance Sales Agents 498,101 638,142 140,041 28% 45,194
Securities, Commodities, and Financial Services Sales Agents 337,343 332,066 (5,277) (2%) 10,859
Sales Representatives, Services, All Other 810,414 850,873 40,459 5% 36,961
Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products 361,099 377,376 16,277 5% 12,997
Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 1,384,222 1,463,191 78,969 6% 49,837
Real Estate Brokers 55,799 51,275 (4,524) (8%) 1,496
Real Estate Sales Agents 224,488 207,285 (17,203) (8%) 5,776
Sales Engineers 69,827 72,439 2,612 4% 2,479
Telemarketers 230,987 246,238 15,251 7% 10,766
Door-to-Door Sales Workers, News and Street Vendors, and Related Workers 7,200 6,447 (753) (10%) 96
Sales and Related Workers, All Other 110,800 122,064 11,264 10% 4,845
Total 4,477,643 4,765,108 287,465 6% 198,375
Self-Employment in Sales

With self-employed/proprietor sales, there are no wages; your pay is completely commission-based. Obviously, you are working for someone, but you are considered a contractor rather than an employee. Examples would be real estate agents & brokers, securities, commodities, and financial services sales agents, and door-to-door salesworkers. We capture data on these occupations with a combination of Census and BEA data—and given how much of these occupations fall into types of self-employment, using this data (and not just QCEW) is essential to having a complete picture of sales jobs.

Since 2009, the number of self-employed/proprietor sales jobs has grown by over a million:
Description 2009 Jobs 2014 Jobs Change % Change Annual Openings
Source: EMSI 2014.3 Class of Worker — Self-Employed and Extended Proprietors
Parts Salespersons 5,129 3,604 (1,525) (30%) 169
Advertising Sales Agents 51,843 52,207 364 1% 2,818
Insurance Sales Agents 462,282 554,405 92,123 20% 35,390
Securities, Commodities, and Financial Services Sales Agents 698,057 864,033 165,976 24% 61,884
Sales Representatives, Services, All Other 156,199 153,893 (2,306) (1%) 6,711
Sales Representatives, Wholesale and Manufacturing, Technical and Scientific Products 30,475 38,356 7,881 26% 3,032
Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientific Products 237,851 278,544 40,693 17% 17,091
Real Estate Brokers 555,868 665,631 109,763 20% 29,669
Real Estate Sales Agents 3,078,911 3,704,597 625,686 20% 167,694
Sales Engineers 0 0 0 0% 0
Telemarketers 24,035 30,097 6,062 25% 2,072
Door-to-Door Sales Workers, News and Street Vendors, and Related Workers 904,296 950,825 46,529 5% 31,385
Sales and Related Workers, All Other 152,847 150,468 (2,379) (2%) 6,351
Total 6,357,793 7,446,661 1,088,868 17% 364,266

Over the last five years, 70% of total new sales jobs in the U.S. came in the self-employed/proprietor ranks. In fact, the only growth in the example occupations listed above came from self-employment and miscellaneous proprietors (what EMSI calls “extended proprietors”), whereas company employment has declined. Not only has corporate employment declined, but even self-employment as the sole (or majority) source of income and time spent is also in decline. The growth in self-employment is completely bolstered by workers who do not claim their independent contract work as their only full-time job (i.e., they work as extended proprietors). How this will play out, or what it means for both the companies that utilize these contractors, still remains to be seen. But it’s undoubtedly the new normal in sales.

Posting vs. Hires

Since the start of 2013, there have been roughly four average monthly hires in sales occupations for every unique (or de-duplicated) job posting. The posting activity from employers has been strong, but the hiring activity has been much stronger. This is most obviously manifested in real estate, where scant postings for real estate sales agents, for instance, are juxtaposed by more than 180,000 average monthly hires.

On the flip side, notice wholesale and manufacturing sales reps of technical and scientific products and sales engineers. Postings outnumber hires in both occupations, which could indicate that employers can’t find the technically minded sales talent they need. (This is also the case with sales managers, one of the best jobs for 2015 we highlighted with CareerBuilder based on supply-demand imbalances.)hires vs postings salesSales_PostingsvsHires2Since the beginning of 2013, posting intensity in these sales occupations has alternated between three to four total job postings for every unique job posting. The postings for general salespeople has shown the highest growth, but again more technical sales positions have also shown strong growth in the last two years.
Sales Cities

There are two types of cities that we highlight in the table below: big metros for sales (greater than 25,000 sales jobs) and smaller cities with oddly high or low concentrations of sales jobs. The highest concentration of sales jobs in the US is found in the Fallon, Nevada, area—one of the sites of the movie “Top Gun” and home to lots of real estate sales agents. Florida holds a number of metros with high concentrations of sales jobs: Sarasota, Fort Myers, and Miami. Jacksonville, North Carolina, and Fairbanks, Alaska, round out the bottom of our list, with half of the sales we would expect to find in any normal town.

Note: The job numbers in the following table are for traditional employees plus self-employed workers and extended proprietors.
MSA 2009 Jobs 2014 Jobs Change % Change 2014 LQ Median Hourly Earnings
Total 3,715,449 4,226,785 511,336 14% $21.42
Fallon, NV 3,146 4,484 1,338 43% 2.43 $12.67
Gardnerville Ranchos, NV 3,009 4,156 1,147 38% 1.97 $17.41
North Port-Sarasota-Bradenton, FL 36,769 43,151 6,382 17% 1.62 $16.38
Cape Coral-Fort Myers, FL 26,388 31,678 5,290 20% 1.50 $15.89
Miami-Fort Lauderdale-West Palm Beach, FL 267,411 326,619 59,208 22% 1.43 $17.84
Phoenix-Mesa-Scottsdale, AZ 196,521 224,705 28,184 14% 1.39 $17.51
Bridgeport-Stamford-Norwalk, CT 49,471 56,369 6,898 14% 1.37 $28.58
Tampa-St. Petersburg-Clearwater, FL 112,470 124,466 11,996 11% 1.21 $18.32
Denver-Aurora-Lakewood, CO 129,952 143,995 14,043 11% 1.21 $21.03
Oxnard-Thousand Oaks-Ventura, CA 30,979 35,227 4,248 14% 1.20 $20.21
Austin-Round Rock, TX 78,661 96,999 18,338 23% 1.20 $20.88
Los Angeles-Long Beach-Anaheim, CA 551,218 627,108 75,890 14% 1.19 $20.99
Salt Lake City, UT 58,266 65,300 7,034 12% 1.19 $20.58
Dallas-Fort Worth-Arlington, TX 289,674 339,613 49,939 17% 1.17 $20.91
Boise City, ID 26,763 28,823 2,060 8% 1.17 $17.49
San Francisco-Oakland-Hayward, CA 203,766 226,722 22,956 11% 1.16 $23.63
San Diego-Carlsbad, CA 130,958 144,136 13,178 10% 1.13 $19.05
Atlanta-Sandy Springs-Roswell, GA 219,577 244,775 25,198 11% 1.12 $19.89
New York-Newark-Jersey City, NY-NJ-PA 764,382 875,402 111,020 15% 1.12 $25.81
Las Vegas-Henderson-Paradise, NV 77,988 85,058 7,070 9% 1.11 $16.51
Chicago-Naperville-Elgin, IL-IN-WI 359,214 389,165 29,951 8% 1.05 $22.13
Baton Rouge, LA 25,037 28,175 3,138 13% 0.83 $17.81
Albany-Schenectady-Troy, NY 26,382 29,616 3,234 12% 0.83 $19.05
Memphis, TN-MS-AR 40,404 43,341 2,937 7% 0.82 $18.98
Ithaca, NY 1,998 2,199 201 10% 0.52 $18.05
Jacksonville, NC 3,150 3,685 535 17% 0.50 $13.91
Fairbanks, AK 1,894 1,819 (75) (4%) 0.48 $16.09
Sales Wages

Wages in some sales jobs can be very high—and the highest are very clearly linked to specific technical knowledge: sales engineers, technical or scientific sales, securities commodities, and financial services command a premium wage.

SalesOccupationEarningsThe takeaway is that education and/or technical expertise helps increase a sales professional’s income. Workers going into this occupation could do well by learning technical subjects—and they should also expect to probably be their own boss.For more on EMSI’s employment data—available at the county, MSA, and ZIP code level—or to see data for your region, email Josh Wright. Follow EMSI on Twitter (@DesktopEcon) or check us out on LinkedIn and Facebook.DesktopEconomist_FooterSubscribeIllustration by Mark Beauchamp.

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