Labor market to add 8M jobs in next 5 years, but mid-wage jobs lose out
- The labor market is expected to add more than 8 million jobs between 2018 to 2023, but most won't be in the middle-wage category, a new CareerBuilder report found. Just one-fourth of the predicted job growth will include openings that fuel employment for middle-wage earners. CareerBuilder defined low-wage jobs as those paying $14.17 or less per hour; middle-wage jobs as $14.18 to $23.59 per hour; and high-wage jobs as $23.24 per hour.
- Among the key findings, high-wage and low-wage jobs are predicted to have the greatest net job growth in the next six years, at 5.71% and 5.69%, respectively. By contrast, middle-wage employment is expected to grow at just 3.83%; 121 occupations will face a decline in jobs between 2018 and 2023, and 75 of those occupations are middle-wage. STEM-related jobs (science, technology, engineering and math) will still be the fastest-growing occupations.
- "Technology innovation is moving at an unprecedented rate and is rapidly redefining the occupations and skills required in the job market," Irina Novoselsky, CEO of CareerBuilder, said in a statement. In response, CareerBuilder just launched a new job search app that uses artificial intelligence (AI) to help workers build resumes. The technology pre-populates skills associated with a job title and company and will even apply for jobs on applicants' behalf. The app also shows higher-paying jobs that require minimal training and upskilling options in building a career.
The question of wage growth in this market has been a curious one, especially as unemployment falls to deep lows. As of September 2018, unemployment is around 3.7%, creating a tough job market for employers; wages, however, have not risen to match it across the board (except in key industries, such as tech), perhaps creating the low-high wage disparities seen in the CareerBuilder report.
One way employers are both managing the tight labor market and helping employees steady their feet in a transformative time in business is through employee development initiatives. Nearly half of employees don't know what their career path looks like, LinkedIn data showed, giving employers ample opportunity to step in and guide employees down a path with the company rather than outside it. Upskilling also ideally sets employees up for higher-paying jobs down the road.
In the recruiting process, employers are increasingly pressured to be transparent about pay rates, with some sites beginning to show salary ranges or insights on certain jobs. Some employers have opted to go ahead and post their pay rates upfront to get ahead of the competition, Glassdoor reported — meaning it is likely that pay transparency is here to stay.