Economics Unemployment Questions
Job polarization refers to the phenomenon where employment opportunities become increasingly concentrated in high-skill and low-skill occupations, while middle-skill jobs decline. This polarization is driven by technological advancements and automation, which replace routine and repetitive tasks typically performed by middle-skill workers. As a result, there is a growing divide between high-paying, high-skilled jobs and low-paying, low-skilled jobs, leading to income inequality and a shrinking middle class. Job polarization has significant implications for the labor market, as it can contribute to higher unemployment rates for middle-skill workers and a mismatch between the skills demanded by employers and those possessed by job seekers.