Are Service-Sector Jobs Inferior?

Abstract

In recent years, U.S. service-producing industries have, on net, added jobs more rapidly than the goods-producing industries. Since the end of 1990, jobs in the service-producing sector have increased 4.1 percent overall, while goods-producing employment has shrunk 5.6 percent." During the same period, total nonfarm employment has risen 1.9 percent. A number of commentators have used these basic statistics to paint a bleak picture: The economy is creating some new jobs and employing a few more people, but only in low-wage service positions; meanwhile, the old high-wage manufacturing jobs are disappearing.