A recent study by the Center for Policy Research (CEPR) asks the question that must be on the minds of college grads, now working as coffee shop baristas: “Where Have All the Good Jobs Gone?" The answer: swallowed by corporate profits and the personal portfolios of the ultrawealthy.
Despite the fact that the American economy has experienced “enormous” productivity gains since the late 1970’s, the study finds that the number of “good jobs” (defined as those paying at least $37,000 per year, with employer-provided health insurance and an employer-sponsored retirement plan) has declined from 27.4 percent in 1979 to 24.6 percent in 2010. This discouraging trend was strong even before the onset of the country’s economic crisis: in 2007, the year before the onset of the recession, only 25 percent of college grads had “good jobs."
CEPR notes that the prevailing explanations for the failure to share productivity gains are “technology” and lack of necessary skills among American workers. But, if this were true, the CEPR study argues, one would expect college grads to have a higher share of good jobs than they did 30 years ago. They don’t. Instead, at every age level, today’s college grads are less likely to have a “good job” than their 1970s counterparts. This is especially surprising, the researchers note, since twice as many Americans now have advanced degrees as compared to the 1970’s.