Right now, middle-class households are in “relatively good shape,” according to a new Bank of America study. However, the study also states that this may not be the case if the labor market continues to move in the direction it’s going.
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“In our view, the labor market for this cohort is worth keeping an eye on,” the study states. “For one, the number of middle-income households receiving unemployment payments increased 7% YoY in February, higher than increases for lower- and higher-income households.
“Additionally, it appears that near-term labor demand has decreased for industries that are more likely to employ middle-income earners, according to data from the BLS. …. Were there to be a relative deterioration in the labor market for middle-income jobs, this may call into question whether the acceleration in middle-income spending could continue.”
Here’s a look at the middle-class jobs that are disappearing, and what middle-class Americans can do to increase their job security.
Middle-Class Jobs That Are Disappearing
According to Bureau of Labor Statistics data, there are several industries that support middle-income households that have seen a year-over-year decrease in job openings: trade, transportation and utilities; manufacturing; information; private educational and health services; and construction.
“Industries throughout the economy are seeing a pullback in job openings because employers must cope with higher costs to bring aboard new talent,” said Noah Yosif, chief economist at the American Staffing Association. “Inflation, interest rates and now tariffs have elevated operating costs while eroding profits, so companies are less willing to backfill existing roles and are rethinking their need to create new ones.”
However, some industries that tend to employ middle-income households have increased hiring over the past year, including financial services; mining and logging; business services; and leisure and hospitality.
“Those with persistent personnel shortages, such as leisure and hospitality jobs, or those requiring workers with specialized skillsets, such as professional and business services, have experienced a more muted contraction in job openings,” Yosif said.
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How Middle-Income Earners Can Improve Their Job Security
The industries that employ middle-income earners have changed over time, so this latest pullback is part of a natural evolution, said Patrice Williams-Lindo, career strategist and CEO of Career Nomad.
“We’ve been here before — Rust Belt towns, 2008 collapse, dot-com bust,” she said. “The jobs come back differently — or not at all.”
The best thing for middle-class Americans to do is to “future-proof” their job prospects. Williams-Lindo recommended focusing on gaining new skills that will always be in demand, including tech fluency, critical thinking and systems strategy.
She also recommended focusing on growing and up-leveling your network, as well as boosting your public professional profile.
“Visibility is recession-resistant,” she said. “Speak, publish, post. If your work isn’t known, it’s as good as gone.”
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This article originally appeared on GOBankingRates.com: 5 Middle-Class Jobs That Are Disappearing
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