Middle-skill jobs are in the same camp as green jobs, STEM jobs, and other groups of occupations that garner lots of attention: They can be defined many ways, by many rubrics. Regardless of the definition, however, it’s clear that middle-skill, or middle-wage, jobs have been in decline for years.
New research from the Federal Reserve indicates the share of middle-skill jobs in the workforce has dropped from 25% in 1985 to just above 15% today, part of the hollowing-out effect that David Autor of MIT has documented. And as our chart above shows, middle-wage jobs — those that pay between $13.84 and $21.13 per hour, as defined by the National Employment Law Project — sustained much deeper cuts during the 2008-2009 recession than high- and low-wage jobs.
But not every middle-skill, middle-wage job is now extinct because of automation and offshoring. A subset of mid-wage manufacturing jobs (along with jobs in energy, health care, and other sectors) are among the healthiest post-recession occupations in the U.S. Furthermore, in a handful of states (Wyoming, Iowa, North Dakota, Michigan), mid-wage fields account for more than or close to 40% of all new jobs since 2010.
Mid-Skill or Mid-Wage?
For our analysis, we used middle-wage jobs instead of middle-skill jobs (i.e., those that require less than a bachelor’s degree but more than a high school degree). This is because some occupations that the BLS has assigned a mid level of education (e.g., registered nurses) often require a higher level of education by employers.
This methodology is similar to the one used by Autor is his 2010 study. For a brief synopsis of why Autor used wage to approximate skill, see here.
Share of New Jobs in Mid-Wage Category
In the U.S., a quarter of all new jobs since 2010 fall in the mid-wage range. That’s a slightly smaller share than high-wage jobs (29%), while almost half (46%) of new jobs have been low-wage.
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Pingback: Wages in US – Post Great-Recession wage declines were especially pronounced for maids and housekeeping cleaners, home health aides, personal care aides, food preparation workers and restaurant cooks | Job Market Monitor - August 31, 2014