Working in the Post-Recession Economy

Looking to thrive in our new, post-recession economy? Then it’s essential to focus on doing work that it would be near-impossible to program a computer or robot to do.

A fascinating study, published in the Cambridge Journal of Economics in 2012, found that Americans in the creative class — those in jobs such as engineers, artists, scientists, educators and entrepreneurs—  had a lower chance of being unemployed from 2006 to 2011 than those employed in the service sector or working class jobs, such as construction or manufacturing.

Other research has already showed that those with college degrees fared better than those who lack them in the last recession. This study looked beyond education levels alone and drilled down into how the jobs people do and the skills required to do them affected their employment rates.

Having a college degree alone isn’t a vaccine against unemployment, as many recent graduates know all too well. As the study shows, those who are most valued in today’s economy are applying whatever education they have–whether it’s a high school diploma or a graduate degree — to fields that require a high degree of knowledge, creativity and human judgement. The work they do can’t easily be automated.

The study, “The Creative Class and the crisis,” was written by Todd Gabe at the University of Maine, Richard Florida at the University of Toronto and Charlotta Mellander of Jönköping International Business School in Sweden.

Even if you’re self-employed, the conclusions are fascinating and offer a road map to economic relevance in the years to come.

Florida, an expert on urban studies, has called the Great Recession the “Great Reset,” in which the economy made a profound shift toward favoring “knowledge-based creative activities.” The study suggests that many of us need to reset our career planning to reflect this dramatic change.

About 8.4 million jobs in the U.S. disappeared from January 2008 to December 2009, the study notes.
While unemployment rose among all major classes of jobs in the recession, those in the creative class fared the best. They had an unemployment rate of 4.1% in 2010 and 2011, after the recession officially ended, according to the researchers’ analysis of data from the U.S. Current Population Survey. Before the recession, in 2006 and 2007, their unemployment rate was 1.9%, and during the crisis, in 2008 and 2009, their jobless rate was 3%.

In contrast, those in service class jobs, in fields like retail, had an unemployment rate of 9.3% in the post-recession years. They had a 5% unemployment rate before the recession and 6.9% during the recession.

Those in working class jobs in fields such as construction and manufacturing had an unemployment rate of 14.6% after the recession. Before the crisis hit, their unemployment rate was 6.5%. During the recession, it was 11.1%.

Interestingly, those in the creative class had lower likelihood of unemployment than those with the same level of education who worked in service and working class jobs.

For instance, unemployment among college-educated members of the creative classes was 3.2% after the recession, compared to a 5.9% unemployment rate among college grads in service class careers and 8.7% among college grads in working class careers.

Among members of the creative class with no college degree, the post-recession unemployment rate was 5.7%, compared to 10% among service sector workers and 15.1% among counterparts who also had no college degree and had previously been employed in working class jobs.

Some of the hardest hit workers, the authors noted, were employed in fields like construction that suffered severe downturns during the economic crisis or were based in cities that were disproportionately affected by the housing bust.

The authors also pointed out that, prior to the Great Recession, growth of residential and commercial construction fueled expansion of service sector businesses. When the housing market collapsed, that also affected service sector jobs that had taken shape in the housing boom.

But they also point to a structural change in the workplace that will affect many Americans. While companies’ investments in technology in recent years have complemented the work done by problem-solving creative workers, tools like computers did not replace what they do. Technology expanded their reach. However, that was not the case for workers doing routine jobs that entail following rigid corporate instructions repeatedly. Computers and other tech tools began replacing some of the work they do.
The creative class also benefited from another trend that showed up in the worldwide economic crisis: Their work was not as heavily affected by export-related conditions as, say, manufacturing workers’ jobs are. It is more tied to local consumption.

Studies like this have profound implications not just for workers but for both educators and employers.
Many schools still follow an old model focused on preparing workers for an industrial economy. While well-financed private schools and wealthy public school districts have for years offered students classes in disciplines like web design and robotics, many poorly financed schools lag behind them and miss opportunities to ignite students’ interest in fields like this.

We all need to look at what is being taught in the schools in our community and make sure it reflects what students need to know today, not just what mattered 40 years ago. You don’t necessarily need a college degree to excel in a field like web design, yet we do little to promote careers like this among high school graduates who aren’t college bound.

We also need to do more to spread entrepreneurship education, which is ignored in many schools. Many in the creative classes are self-employed or run small businesses, from marketing shops to architecture firms. However, most of us graduate from high school without a clue as to how to run a business, unless we happened to be part of a family that owned one.

Entrepreneurs and other employers also need to keep pace with the changes. The customers of the future will either want products and services that can be purchased at the rock-bottom prices automation allows–or offer something special, that only humans can bring. What types of highly customized service, unique expertise or cutting-edge skills do you have to offer? Many of us need to be able to answer questions like these, or we’ll find ourselves sidelined.

Original article from Forbes.com can be found HERE