The Service Economy, or the PostIindustrial Society, is Considered the Next Stage in the U.S.'s Development.

The Service Economy, or the post-industrial society, is considered the next stage in the U.S.'s development. It is defined as a country where manufacturing, hard products and production will slowely decline. In other words building simple products such as televisions, coffee makers and tires will not be built in the U.S. In the service economy new industries such as service, information, research will continue to grow and replace these manufacturing businesses. The service economy will look drastically different then it does today. People will have to learn new skills to compete.

One of the biggest differences is that the service economy is that many of the low-skilled jobs are in abundance and wages decline for unskilled labor due to a decline in manufacturing. However, the pay and prestige of highly skilled jobs keeps increasing. Therefore it is a society of the have and the have-nots. The middle class who made their money at companies like the Big Three Automotive Companies will not see these jobs replenished for their children.

The reason why low-skilled workers wages decline is because many of the high-paying manufacturing jobs have moved overseas in order to benefit on the cost savings. Since telecommunications technology, logistics and a global market has developed the location of such manufacturing companies is of little concern.

The low-skilled worker is thus forced to find jobs in the service sector. As most of us know, the jobs in the service sector do not pay high wages in general. It is hard to pay someone 19 dollars an hour to serve food at a school. As the amount of manufacturing jobs decline there is more competition for other jobs and this puts a downward pressure on wages.

The good news is that highly skilled employees and labor are in high demand. These types of workers have achieved much in the world of academia, have skills that cannot be easily learned in other countries due to their poor education systems and are technologically advanced. They take advantage of the skill gap left behind by retiring Baby Boomers.

The good news for these highly education people is that they can purchase personal services at a much cheaper rate then they could before. The downward pressure on the wages of unskilled labor raises the standard of living on those in the higher income brackets. They now can afford to have someone clean their house, mow their lawn and watch their children.

If you are a person who is concerned about your future employability you must be able to foresee some economic trends in the labor market and learn the skills to compete effectively. This may require you to go back to school, move into a high-tech industry and focusing on your long-term growth.