“Over the past decade many economists have warned that the middle of the labor market is hollowing out. Traditional middle-skill jobs—like construction, production, and clerical jobs that require little formal education—are disappearing.
But new analysis from Economic Studies Visiting Fellow Harry Holzer uncovers growth in the middle of the labor market that many have overlooked. Analyzing data from the Bureau of Labor Statistics (BLS), Holzer finds that while it’s true there are fewer traditional middle-skill jobs, employers are looking for workers to fill new kinds of middle-skill jobs—in health care, information technology, and advanced manufacturing—but can’t find the workers they need.
In this “new middle” of the labor market, jobs that require slightly more post-secondary education are growing, but American workers are increasingly unprepared to fill the positions….