“Between 1980 and 2009, demand for high-skilled workers from engineers to architects grew steadily. So did their wages. For instance, the median wage for jobs related to computers and math was roughly $49,000 in 1980 and it rose to $67,000 in 2009. Demand for lower-skilled workers from waitresses to construction workers also grew (and to some extent, so did their wages), leaving the middle class floundering with few options and declining or stagnant pay. So how bad off is the middle class? The Fed offers a distressing glimpse: In 1980, three quarters of all U.S. workers were employed in middle-skill jobs. By 2009, that figure plunged to two-thirds. Whereas machine operators accounted for 10% of the nation’s jobs more than three decades ago and administrative jobs comprised 18%, their shares spiraled to about 4% and 14%, respectively, by 2009. It’s not just a trend in the U.S., but also in many of the world’s advanced economies. And while it has been happening for more than three decades, middle-skill jobs suffered more than most others during the Great Recession. Economists have offered several reasons explaining the trend, from the sophistication of machines that replace routine work to international trade and offshoring. Indeed, rising demand for skilled workers seems almost irreversible. But Massachusetts Institute of Technology economist David Autor suggests that perhaps it’s not entirely out of our control.”
By Nin-Hai Tseng