The last several decades have seen a stagnation in wages that have not kept up with inflation. One of the main reasons is that there are two very different labor markets in the U.S., a smaller one that is skilled labor and larger one that is unskilled labor.
Although unemployment for unskilled workers is generally twice as high as skilled workers, since the mid 1970’s, the unskilled jobs have been moving offshore. First apparel and textiles left, then steel and shoes, then televisions and autos, etc. Once trade agreements like NAFTA and China’s entrance in the WTO, offshoring unskilled work has hit nearly every industry. Adding to these job losses are advances in technology; such as the migration to smart phones apps and cloud computing solutions that has reduced the demand for swaths of unskilled labor. For example, publications from newspapers to books are now electronic only and Amazon has grown into one of the largest retailers.
Since the Great Recession of 2008, both skilled and unskilled have lost jobs but, in general, the skilled workers are able to eventually find new jobs while the unskilled have been forced out of the labor force.
What to do?
- Make certain your skill set is compatible with growth industries, not one in decline.
- Make certain your skill set will be in demand from demographics – like healthcare for the elderly
- Keep your skill set current, digital industries change rapidly and 5 year-old skills can be long obsolete
- Manage your career by getting project management skills along with continually networking and building resume achievements and experiences.