Clark Howard's Tips
Re-training, new skills the key to career movesApril 10, 2008
Are Americans going backwards economically? That's how some of the financial press is spinning the latest findings of the Pew Research Center. Only 4 in 10 people feel they're moving forward -- and that's a record low. Of those who define themselves as middle class, 80% say they can't maintain their standard of living. This, of course, translates to lack of optimism about the country.
When you look at the last 5 years, there has been some distortion in the economy and some trends have squeezed people. But look further back to the '70s. The average American family income is 40% higher than it was one generation ago. That's practically unprecedented for an already developed economy. Meanwhile, the average family is 35% wealthier in terms of net worth than a generation ago.
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Yet the Pew findings ring true. The middle class is hollowing out. In town after town, the non-skilled union jobs have steadily been evaporating as our manufacturing base declines. The kinds of jobs that unskilled laborers now have to get as a replacement typically pay much less and don't have a pension or benefits. So what's happening is that our country is dividing into 3 distinct groups: One third of Americans are making really decent money; one-third have low incomes and are not doing so well; and one third are in the middle. Clark's never seen this kind of split in his lifetime; the classic bell curve of yesteryear is gone and that's why there's unease.
Even if you're mid-career, you've got to reinvent yourself. This is the real challenge as we face global competition. The free trade genie won't go back in the bottle. Clark wants to hear political discourse about how to start re-training mid-career people. Community colleges and state-sponsored technical schools are both great venues to gain new skills or get re-training.
