from the chasing-the-vanishing-jobs? dept.
Binyamin Appelbaum writes at the NYT that the share of prime-age men — those 25 to 54 years old — who are not working has more than tripled since the late 1960s, to 16 percent as many men have decided that low-wage work will not improve their lives, in part because deep changes in American society have made it easier for them to live without working. These changes include the availability of federal disability benefits; the decline of marriage, which means fewer men provide for children; and the rise of the Internet, which has reduced the isolation of unemployment. Technology has made unemployment less lonely says Tyler Cowen, an economist at George Mason University, who argues that the Internet allows men to entertain themselves and find friends and sexual partners at a much lower cost than did previous generations. Perhaps most important, it has become harder for men to find higher-paying jobs as foreign competition and technological advances have eliminated many of the jobs open to high school graduates. The trend was pushed to new heights by the last recession, with 20 percent of prime-age men not working in 2009 before partly receding. But the recovery is unlikely to be complete. "Like turtles flipped onto their backs, many people who stop working struggle to get back on their feet," writes Appelbaum. "Some people take years to return to the work force, and others never do "
A study published in October by scholars at the American Enterprise Institute and the Institute for Family Studies estimated that 37 percent of the decline in male employment since 1979 can be explained by this retreat from marriage and fatherhood (PDF). “When the legal, entry-level economy isn’t providing a wage that allows someone a convincing and realistic option to become an adult — to go out and get married and form a household — it demoralizes them and shunts them into illegal economies,” says Philippe Bourgois, an anthropologist who has studied the lives of young men in urban areas. “It’s not a choice that has made them happy. They would much rather be adults in a respectful job that pays them and promises them benefits.”
Claire Cain Miller writes at the NYT that economists long argued that, just as buggy-makers gave way to car factories, technology used to create as many jobs as it destroyed. But now there is deep uncertainty about whether the pattern will continue, as two trends are interacting. First, artificial intelligence has become vastly more sophisticated in a short time, with machines now able to learn, not just follow programmed instructions, and to respond to human language and movement. At the same time, the American work force has gained skills at a slower rate than in the past — and at a slower rate than in many other countries. Self-driving vehicles are an example of the crosscurrents. Autonomous cars could put truck and taxi drivers out of work — or they could enable drivers to be more productive during the time they used to spend driving, which could earn them more money. But for the happier outcome to happen, the drivers would need the skills to do new types of jobs.
When the University of Chicago asked a panel of leading economists about automation, 76 percent agreed that it had not historically decreased employment. But when asked about the more recent past, they were less sanguine. About 33 percent said technology was a central reason that median wages had been stagnant over the past decade, 20 percent said it was not and 29 percent were unsure. Perhaps the most worrisome development is how poorly the job market is already functioning for many workers. More than 16 percent of men between the ages of 25 and 54 are not working, up from 5 percent in the late 1960s; 30 percent of women in this age group are not working, up from 25 percent in the late 1990s. For those who are working, wage growth has been weak, while corporate profits have surged. “We’re going to enter a world in which there’s more wealth and less need to work,” says Erik Brynjolfsson. “That should be good news. But if we just put it on autopilot, there’s no guarantee this will work out.”