labor market polarization

Labor market polarization refers to the trend where job opportunities increasingly cluster at both ends of the skill spectrum, with growth in high-skill, well-paying roles and low-skill, low-paying jobs, while middle-skill, middle-wage positions decline. This shift is driven by technological advances and automation, which replace routine tasks, reducing mid-level jobs, and increasing demand for specialized skills or basic service roles. As a result, the job market becomes more segmented, with fewer middle-income jobs, leading to increased economic inequality and challenges for workers in the middle tier.