Clark Howard's Tips

Re-training, new skills the key to career moves

April 10, 2008

Are Americans going backwards economically? That's how some of the financial press is spinning the latest findings of the Pew Research Center. Only 4 in 10 people feel they're moving forward -- and that's a record low. Of those who define themselves as middle class, 80% say they can't maintain their standard of living. This, of course, translates to lack of optimism about the country.

When you look at the last 5 years, there has been some distortion in the economy and some trends have squeezed people. But look further back to the '70s. The average American family income is 40% higher than it was one generation ago. That's practically unprecedented for an already developed economy. Meanwhile, the average family is 35% wealthier in terms of net worth than a generation ago.

CLARK'S TIP TOPICS Consumer Tips Managing Money Banks & Credit Cards Technology Health & Healthcare Car Costs Homes Phones & Utilities Small Business Travel & Leisure Find more consumer advice in Clark Howard's book, "Get Clark Smart"

Yet the Pew findings ring true. The middle class is hollowing out. In town after town, the non-skilled union jobs have steadily been evaporating as our manufacturing base declines. The kinds of jobs that unskilled laborers now have to get as a replacement typically pay much less and don't have a pension or benefits. So what's happening is that our country is dividing into 3 distinct groups: One third of Americans are making really decent money; one-third have low incomes and are not doing so well; and one third are in the middle. Clark's never seen this kind of split in his lifetime; the classic bell curve of yesteryear is gone and that's why there's unease.

Even if you're mid-career, you've got to reinvent yourself. This is the real challenge as we face global competition. The free trade genie won't go back in the bottle. Clark wants to hear political discourse about how to start re-training mid-career people. Community colleges and state-sponsored technical schools are both great venues to gain new skills or get re-training.

More Clark Howard Tech Tips CDs and savings again earning a decent return  GrooveShark offers legit free music downloads, streaming  Using technology to combat customer no service  Beat the keyloggers with this simple tip  Clark unveils his "Tech 101" guide  Internet coming to cars, airplanes  Sirius/XM merger can't hold a candle to HD Radio  Online and cable TV worlds delivering targeted ads  New tech developments from NetFlix, Hewlett Packard  Free e-mail providers differ on privacy issues  Full list More Clark Howard Consumer Tips Capitulation has benefits for buyers and sellers  Inflated home values are in the eye of the beholder  Is it time to raise your homeowner's coverage?  A bust, a bailout and new mortgage lending rules  Pay attention to foreclosures at the risk of missing other deals  Hotels deals, baggage warning for travelers  GM launches 2 new sales initiatives  Cost of a vehicle at all-time low  J.D. Power's Vehicle Dependability Study released  Clark eats humble pie over SUV leasing advice  Full list