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Walmart checkout

Image: Walmart via Flickr (CC BY 2.0)

By Herbert J Gans

One of the lesser known facts about the post-recession economy is that while new jobs are being created at near record levels, a significant number are bad jobs. No one knows exactly how many, but in April 2014,the National Employment Law Project, which measured job quality by industry wage level, reported that 44 percent of jobs created (pdf) between 2010 and 2014 were in lower wage industries, compared to 56 percent in mid wage and high wage ones.

The proportion of bad jobs was probably even higher since the study set the low wage floor two dollars above the current federal minimum wage. We also know that growing industries like health and other care as well as tourist related enterprises and many small manufacturing firms all pay minimum wages.

The trend may not even be new, for there is some evidence that the rising proportion of bad jobs goes back as far as the 1970s. John Schmitt and Janelle Jones of the Center for Economic Policy Research estimate the ability and willingness of employers to create good jobs has decreased (pdf) by a third since 1979.

More important, the forces behind the creation of bad jobs remain in place. Global competition with low wage countries, outsourcing of American jobs, increasing computerization and robotization, the political influence of corporate and Wall Street firms and the weakening of unions continue. Moreover, many industries and occupations that depend on low wage workers are still expanding. Consequently, the economy may continue to produce too many bad jobs even when it is also producing record profits for many employers and their shareholders.

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