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Report shows diminishing middle class in LA & Bay AreaPosted by Gino DiCaro, VP, Communications on May 13, 2015
The California Business Roundtable's Rob Lapsley said this week, "Policymakers have to modernize our laws in a way that will attract investment that creates middle class job opportunities."
It was his concluding response to a report issued by the Center for Jobs and the Economy titled “Economic Tale of Two Regions: Los Angeles vs. Bay Area”.
The study used EDD data for Los Angeles and the Bay Area to show that jobs created in the past 24 years have been at opposite ends of the wage spectrum—either low-wage or high-wage—leading to a diminishing middle class and the creation of a two-tier economy and growing lower-wage class in California.
The Bay Area accounts for more than 60 percent of the state’s net employment gains since 2007, but job growth has been led by higher wage jobs of the expanding new industries and the lower wage service jobs related to that growth. By contrast, Los Angeles presents a trend largely of jobs stagnation under which middle class wage jobs have been steadily replaced by lower wage service jobs.
Los Angeles and the Bay area's emerging trends are cautionary tales for the entire state of California. Indeed Mr. Lapsley is correct about attracting high wage middle class jobs. Let's start with manufacturing.
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