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11.28.2007 3:16 pm

Here’s what we know about job quality, and it isn’t all bad

St. Louis Post-Dispatch

A commenter on a previous post  asks whether the jobs being created these days are quality ones, adding that “for an increasing number of average folks, it takes two or three of these ‘new jobs’ to equal what we used to get in just one.”

The quality-jobs question is difficult to answer, because the Labor Department’s payroll survey, the primary source of job-growth numbers, gives us only average wages for fairly broad categories of workers. It doesn’t tell us whether the new hires are coming in above the average or below it.

The issue has been studied a lot, though. Here’s an excerpt from a column I wrote in July 2004, when the quality of jobs was being raised as a political issue:

Another monthly Labor Department report, the household survey, provides far more detail. Here, the government’s statisticians break down the work force both by industry and by occupation.

Two recent analyses, by Business Week magazine and by the University of Pennsylvania’s Annenberg Public Policy Center, sliced that data into 154 different job  categories, such as managers who work in the construction industry or salespeople who work in the financial industry.

They looked at the numbers in slightly different ways, but came to essentially the same conclusion. Business Week found that 65 percent of new jobs in the past year have been in categories that pay above the median wage. The Annenberg Center found that virtually all the new jobs were in higher-paying categories, with no growth in low-wage jobs.

The shift from manufacturing to services has been going on for a long time. But what people miss is that the service sector has highly skilled jobs, too.

“Doctors, teachers and nurses are growing faster than Wal-Mart clerks,” says Brooks Jackson, director of Annenberg’s Political Fact Check project and author of its jobs study.

I don’t know of more recent research along these lines, but if I find any, I’ll share it here.

 

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4 comments

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Appreciate your attempt to answer the question about quality jobs, which I define as jobs with decent healthcare and retirement benefits. The 2004 studies only comment on pay, using the median figure. Median, of course, only means that half of the jobs pay above half of all possible wage rates. Average pay would be more useful…and, of course, some research into the trends regarding healthcare and retirement benefits would be even more relevant to my question. There is considerable evidence that fewer employers are offering heathcare benefits since at least the year 2000 and more companies than ever have switched away from defined benefit plans, or away from meaningful retirement security altogether. My main point is: the constant pointing to job growth, without any meaningful statistics about job quality, is rather Pollyanna-like. And on another point, it is a sad commentary on the Business Section when it can print a rather lame, rightwing hit piece book review of Paul Krugman latest book, as it did recently, but fail to do a fair/balanced/and accurate review of Naomi Klein’s bestseller about Disaster Capitalism. (There was a fairly decent review in the Arts and Entertainment Section last Sunday, and while Ms. Klein’s book is well-written and somewhat entertaining, it certainly deserved coverage in the Business Section. But there is probably a space issue: since the rightwing corporate think tank, the Show-Me Institute, tends to get a lot of ink in the Business Section.) Wake up, America!

— whiterosesociety
8:25 pm November 28th, 2007

Kudos to Mary Jo Feldstein, whose article on the front page in today’s Post-Dispatch on healthcare costs/issues is timely, balanced, and well-done in general, and also to the Editorial Page for its editorial, also in today’s edition, regarding health care/job quality issues. Strongly suggest that David check them out! I believe both speak rather eloquently to my previous postings about job quality, but more so, to the fairly obvious deterioration of the middle class in favor of the super-rich in our beloved country. The Milton Friedman/Chicago School of Economics crowd has had it their way for far too long. It is time to return to Keynesian concepts, including a robust mixed economy. Strong popular movements, such as the civil rights and labor causes, along with a strong assertion of political democracy built our middle class after the Robber Barons of the late 19th and early 20th centuries held sway. The corporate elite want another Gilded Age. They are not going to get it. People are waking up and getting wiser. Change is coming and it is long overdue. Wake up, America!

— whiterosesociety
7:52 am November 29th, 2007

This last post by whiterosesociety just confirms that all the posts should be taken with a grain of salt, especially when one doesn’t have a grasp of basic terms used to base ones position. How can average pay be more useful than median pay to determine incomes are rising? For average income to rise, all it takes is the highest income earner to earn more. Whereas, for the median income to rise, new jobs or earners that were below the median income would have to earn more than median income. I guess if one can’t grasp this simple concept whiterosesociety probably doesn’t have a grasp on the history of how healthcare and retirement benefits were linked to jobs in the first place. They both are tools to attract workers when competition is high. If healthcare benefits were a taxable benefit, companies would likely have just rather paid a higher wage for workers to buy their own. Personally I would rather have control over my retirement benefits than leaving it in the hands of a company that may or may not be here 40 years from now. If the cost of offering these benefits rises more than the benefit the company receives from offering them or the competition for workers drops then these benefits will be reduced or eliminated. One may not like the fact that their benefits were cut but one has to take a little personal responsibility.

— kurtis
9:13 am November 29th, 2007

Appreciate the mostly polite response from kurtis. I would also point kurtis, as I do David, to the editorial in today’s paper. Employer contributions and/or programs, including 401K and solid defined benefit plans, have both fallen dramatically over the past decade. We need a social safety net in order to provide hope to the poor and a floor beneath the middle class. This safety net should include retirement and health security. When one percent of the population(the super-rich)own over fifty percent of our national wealth, this speaks volumes to the incredible shrinking middle class! The average CEO makes as much in one day than the average working stiff makes in over 365 days. According to leftist radicals like Alan Greenspan, John Bogle, Warren Buffett, and Ron Burkle, this trendline is not sustainable. You cannot have political democracy if our middle class continues to shrink, thus leading to a top-heavy pyramid. Wake up, America!

— whiterosesociety
9:44 am November 29th, 2007