Mid-Level Blues

Writing in CareerJournal, David Wessel looks at the sagging demand for middle-range jobs. An excerpt:

But technology and globalization are not eroding demand for personal-service workers. Those tasks can't be done by computer or shipped offshore. The services have to be delivered here in the U.S. -- and in person -- either by natives or by immigrants.

Indeed, as the folks at the top make more money, more of them want nannies, gardeners, personal trainers and gourmet chefs. These workers are indirect beneficiaries of the upward flow of wealth.Their wages have been rising while those of midlevel factory and office workers, though still higher than those of many service employees, are stagnating.

Dissecting data on 741 American communities, MIT's Mr. Autor and colleague David Dorn examined places that were particularly heavy with easy-to-automate or easy-to-outsource jobs in 1980. By 2005, they discovered, wage inequality in those communities had widened more than elsewhere. The erosion of jobs and wages in the middle coincided with increasing employment and wages for personal-service workers at the bottom of the income ladder and highly educated workers at the top.