One way to spot promising industries on strong growth paths is to see which are creating the most jobs. When business picks up for a company, it doesn't immediately expand its workforce, but tries to better use the staff it already has.
However, once work and customer demand hits a certain level, there is nothing to do but start hiring more employees. Recently the market research organisation IBIS World put out a new report on the top industries it believes will create the most jobs in the next five years.
Some of the industries tipped to rise strongly are being driven by changes in technology like cloud computing while others are following simple themes that investors may know about already, yet haven't acted upon. Now may be the time to set your portfolio up for these expanding trends. I have two great stock picks for two of the top industries tipped to grow in the mid-term.
— Online education
Mobile and cloud computing are opening up many business opportunities for learning and online education is becoming more widely accepted by business and educational bodies.
SEEK Limited (ASX: SEK) would be my first pick. Investors may know it as the number one job search website, but it also provides educational and training services. It offers investors great growth rates and a 1.5% dividend yield.
Navitas Limited (ASX: NVT) is a global educational service provider with colleges, training sites and working partnerships with established universities. Earnings are forecast to rise and student enrolments are growing. It has a 2.8% yield.
— Oil and gas
LNG and conventional energy producers are investing more in development of new oil and gas resources to supply the coming boom in LNG exporting.
Beach Energy Limited (ASX: BPT) is developing and producing oil and gas in the Cooper Basin region in SA. Oil production has grown greatly and new discoveries are yielding more output than originally projected. It offers a 2.3% yield.
Oil Search Limited (ASX: OSH) is expected to expand oil and gas production by as much as four times through the PNG LNG project over the next few years. There is even the possibility of further project expansion, sending revenues potentially much higher. It has a high price/earnings ratio of 33 and a 0.7% yield.
