Building America's Third Great Job Machine - Richard Florida - Business - The Atlantic - 0 views
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The first American job machine was organized around farms and agricultural employment. More than four in 10 Americans worked on farms in 1800. Another 20 percent or so worked in manufacturing.
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The second great American job machine took hold during the mid-19th century, propelled by the surge in manufacturing. By late in the century, some 60 percent of the workforce had been absorbed in industrial jobs while agricultural work dropped to roughly ten percent of employment. Industrial and blue-collar manufacturing jobs would power America's economic and employment growth for the better part of the next century, until roughly1950. But for most of those years, it was low-wage, long-day, dirty and dangerous work -- it wasn't until the Great Depression, the New Deal, and post WW II prosperity that blue-collar jobs became good, family supporting jobs.
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Against the backdrop of a massive decline in once high-paying blue collar manufacturing jobs which is eerily similar to the decline of agricultural jobs a century or so ago, this third transformation is creating not one overall, but two distinct categories of jobs and employment.
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first category includes millions of the best jobs America has ever seen: high-pay, high-skill jobs in knowledge-based professional and creative fields. Almost a third of American workers now have these kinds of jobs, which pay more than double most manufacturing jobs and which have been rather impervious to unemployment.
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When unemployment among production workers climbed to more than 15 percent and surged above 20 percent for construction workers, unemployment among professional, technical and creative workers never got much above five percent.
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the second category, which comprises such routine service work as personal care assistants and home health care aids, retail sales clerks, and food preparers -- is not so good. In fact, the pay for these jobs is roughly half that of manufacturing jobs. The result is as simple as it is tragic: a startling bifurcation of the job market and an increasingly unequal and divided society. Once we see this, it becomes clear that neither of the two most commonly cited prescriptions -- the counter-cyclical approach to job creation by boosting investment and demand, or the path of educating more people for higher-paying knowledge-based jobs -- can work.
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A successful jobs strategy must focus centrally on upgrading the content and improving the wages of this entire job category. That is what happened a century ago, when public policy shifted to protect workers' rights and line jobs in manufacturing, once considered dirty and dangerous and impossible to upgrade, became high-paid work.
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service work and service workers are not just a necessary cost of doing business, part of the overhead, but a potential profit center. Service workers can produce real value and there's no reason that they can't have real careers.
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Most service firms are smaller, mom-and-pop operations. To bring them into the 21stcentury, the administration should develop strategies to help these smaller firms learn the advantages of seeing workers as sources of innovation and productivity gains.
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This could be a modest, low cost public-private partnership, involving universities, community colleges, and industry groups, modeled perhaps along the lines of the old Agricultural and Manufacturing Extension programs. The administration should also consider using incentives to encourage companies to upgrade service jobs, which would have the added benefit of improving the overall productivity of the highly fragmented service sector -- the last great frontier of inefficiency in advanced economies -- lifting the productivity of the economy overall, while boosting wages and lifting consumer demand.
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This wouldn't come for free. All of us would have to pay a little more to the people who clean our homes, take care of our kids and aging parents, cut our hair, and sell us our clothes. This is exactly what we did a half century ago to spur recovery, when we agreed to pay more to the workers who made our cars and appliances and were building our homes. The costs are so modest and widely spread that they are unlikely to derail any recovery. And the payoffs in terms of productivity gains and increased demand are surely worth it.