Divergent Paths: Economic Mobility in the New American Labor Market

In the contemporary uncertain labour market situation, the tradition of upward mobility, or the chance for all workers to improve their earnings, may be a thing of the past in the United States of America (USA). In a competitive economic environment, many companies that once offered the opportunity for advancement to workers, have reinvented themselves as leaner enterprises with more flexible work forces. This publication presents empirical research into the prospects for upward mobility of workers in this new economic environment. The research is based on a comparison of the career outcomes of two generations of young, white men over the course of their working lives. It documents the gap between the upwardly mobile and the increasing numbers of workers trapped in low-wage jobs. The first generation entered the labour market during the late 1960s during a period of stability and prosperity. The second generation entered working life during the early 1980s, a period of recession, deregulation, and the weakening of organised labour. This comparative research reveals trends indicating that the new labour market is harsher than that of the 1960s. A 'pyramid' situation has evolved where highly qualified, well-connected workers at the top of the employment pyramid move from job to job, improving their earnings as they proceed, and a growing number of lower skilled workers are consigned to low paid, 'dead-end' jobs. The authors conclude with a discussion of policy strategies to improve career pathways and promote opportunities for all workers to enhance their earning power. The strategies are based on regional partnerships that link corporate, union, government, and community resources.