Back to the complete issue
Thursday, 9 August 2018

Could the US job market stop favoring college-educated workers?

Could the US job market stop favoring college-educated workers? A surge in manufacturing jobs in the US could translate into a more balanced job prospects for college-educated and less-educated workers, Conor Sen writes for Bloomberg. “The unemployment rate for people over age 25 with less than a high school degree is 5.1 percent, the lowest on record going back to 1994. Perhaps more impressive, as economists point to the employment-population ratio still being below its highs of prior cycle peaks to argue there’s still more labor market slack, that is not the case for those with less than a high school degree.”

The wage gap between high- and low-income earners could also be getting narrower as the fastest rate of income growth is now concentrated among the low-income earners, suggesting that wage inequality is not something inevitable, Sen says. This comes as the economic environment in general is in their favor, with many key manufacturing industries bouncing back from temporary dips and minimum wage rising around the country. Put together, all of these factors mean “things are actually moving in the right direction” for America’s least-educated labor force.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.