In Brief
The Problem
Companies in the knowledge economy are struggling to provide meaningful and secure jobs for workers who aren’t highly educated. This creates social tensions and promotes inequality.
Why It’s Happening
Manufacturing, traditionally the source of good blue-collar jobs, is shrinking relative to the service sector, and what work it has available is increasingly vulnerable to automation. Meanwhile, service sector jobs are often poorly paid and offer little security.
The Solution
We need to redefine what makes a blue-collar job good. The traditional job was well paid and secure. Going forward, employers should offer workers a stake in the company, reward their contributions to the company’s success, and provide opportunities to acquire portable skills.
Fifty years ago Americans knew exactly what constituted a good job for a blue-collar worker: a position with a large manufacturer such as General Motors or Goodyear or U.S. Steel. Often unionized, it paid well and offered good benefits. It was also secure. Even if you were laid off during a downturn, you would probably be called back when business picked up. This was true not only in the United States but also in most other developed economies at the time.