December 20, 2013

Polarization of the US labor market

The polarization of the US labor market continues as more displaced workers can only find service jobs, MIT research reveals.

If one is stuck in such a position, it behooves the person to start looking for alternatives. If you say you are not ready to look, when would you be ready? It is like saying I will do it tomorrow. As you and I know, tomorrow never comes.

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Following is the article from MIT News:

Polarized labor market leaving more employees in service jobs
Study: U.S. job market is putting more workers in positions with limited upside and leverage.
Peter Dizikes, MIT News Office

The widening chasm in the U.S. job market has brought many workers a long-term shift to low-skill service jobs, according to a study co-authored by an MIT economist.

The research, presented in a paper by MIT economist David Autor, along with economist David Dorn, helps add nuance to the nation’s job picture. While a widening gap between highly trained and less-trained members of the U.S. workforce has previously been noted, the current study shows in more detail how this transformation is happening in stores, restaurants, nursing homes, and other places staffed by service workers.

Specifically, workers in many types of middle-rank positions — such as skilled production-line workers and people in clerical or administrative jobs — have had to migrate into jobs as food-service workers, home health-care aides, child-care employees, and security guards, among other things.

“This polarization that we see is being driven by the movement of people out of middle-skill jobs and into services,” says Autor, a professor of economics at MIT. “The growth in service employment isn’t that large overall, but when you look at people with a noncollege education, it’s a very sharp increase, and it’s very concentrated in places that were initially specialized in the more middle-skill activities.”

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