![]() New Economy Index Home Introduction SECTION I What's New About The New Economy? Industrial and Occupational Change New Industries and Jobs Skills and Wages Globalization Trade Foreign Direct Investment Dynamism and Competition Gazelles Competition "Coopetition" The Churn Economy Product and Service Diversity Speed The Information Technology Revolution Microelectronic Proliferation Cost of Computing Cost of Data Transmission SECTION II New Economy Outcomes: Impacts on Americans SECTION III Foundations for Future Growth Explaining the Productivity Paradox The Knowledge Economy Nine Myths About the New Economy Data Sources Endnotes The Authors ![]()
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INDUSTRIAL
AND OCCUPATIONAL CHANGE High-Wage, High-Skill Jobs Have Grown, But So Have Low-Wage, Low-Skill JobsWHY IS THIS IMPORTANT? The rise of new industries has meant the rise of new jobs, while new technology and new ways of organizing work have transformed many existing jobs. Both trends have changed the occupational mix in America, which in turn affects economic opportunity and well-being. THE TREND: Knowledge-based jobs (those requiring post secondary, vocational, or higher education) have grown as a share of total employment. For example, there were fewer than 5,000 computer programmers in America in 1960, and there are over 1.3 million today. Managerial and professional jobs increased as a share of total employment from 22 percent in 1979 to 28.4 percent in 1995. However, in the last decade, as the share of these knowledge-based jobs has increased, the share of mid-level skilled jobs has declined. This bifurcating trend of growth in both high- and low-skilled jobs is
expected to continue. Jobs requiring an associates degree or above are expected
to increase from 31 percent of all jobs in 1996 to 32.4 percent in 2006.
And while the share of jobs requiring moderate-term training is expected
to decline by 1.1 percent, the share of jobs requiring only short-term training
is expected to decline only 0.3 percent. Low-skilled jobs are not going
away any time soon. The occupations with the largest predicted numerical
increases are cashiers, janitors, retail salespersons, waiters, and waitresses.
Together, they are expected to account for 13 percent of all new job growth.
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