Short answer

Designers should be aware of the shrinking middle-income segment and tailor their solutions to either the growing low-wage service sector or the expanding high-wage knowledge economy.

Field: Innovation & Markets
Source: Syracuse University Libraries (Syracuse University) (2020)
Method: Quantitative analysis of economic data
Evidence: Strong effect

Technological advancements are disproportionately eliminating middle-wage jobs, leading to a bifurcated job market with growth in low-wage service and high-wage knowledge-based sectors. This innovation & markets research insight is drawn from a 2020 study published in Syracuse University Libraries (Syracuse University). Using Quantitative analysis of economic data, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers should be aware of the shrinking middle-income segment and tailor their solutions to either the growing low-wage service sector or the expanding high-wage knowledge economy.

Study

Innovation & MarketsHigh ImpactStrong effect

Technological shifts, not globalization, are polarizing NYS job markets.

Technological advancements are disproportionately eliminating middle-wage jobs, leading to a bifurcated job market with growth in low-wage service and high-wage knowledge-based sectors.

Syracuse University Libraries (Syracuse University) · 2020

Key Findings

01Technological change has a greater impact on reducing middle-wage jobs in NYS than globalization.
02Job growth is polarized, with increases in low-wage service and high-wage knowledge-based occupations.
03Regions outside the NYC-Albany corridor show stagnant employment growth and population decline.
04Wage growth in most NYS regions lags behind the national average.

Application

Design takeaway

Designers should be aware of the shrinking middle-income segment and tailor their solutions to either the growing low-wage service sector or the expanding high-wage knowledge economy.

How to apply

When designing a new product or service, consider whether it will serve a user base with limited disposable income or a user base with significant resources and specialized needs.

Project actions

01Consider the economic background of your target user when defining user needs.
02Explore how your design might impact job roles, especially those in the middle-wage bracket.

Method & Evidence

AimTo investigate the primary drivers of regional economic disparities and job market polarization within New York State.

MethodQuantitative analysis of economic data

ProcedureThe study analyzed private sector employment and population growth rates across different regions of New York State from 2000 to 2017, comparing them to national averages and examining the impact of technological change versus globalization on job types.

ContextRegional economic development and labor market analysis in New York State.

Variables

IVTechnological change, Globalization

DVJob market polarization (growth in low-wage service and high-wage knowledge-based occupations), Reduction in middle-wage jobs

CVRegional economic data (employment growth, population change, wage growth)

Strengths & Limitations

Strengths

+Provides specific regional data for New York State.
+Differentiates between the impact of technology and globalization.

Limitations

This research is specific to New York State and may not reflect the economic situation in other regions.

Reliability & validity

The study's reliability is supported by the use of official economic data. Validity is enhanced by comparing regional trends to national averages and by attempting to isolate the effects of technology versus globalization.

Think critically

How might a design project aimed at bridging the gap between low-wage and high-wage jobs be developed, considering the trends identified?

Design Principles

"Design for economic polarization: cater to either high-value, knowledge-intensive needs or low-cost, essential services."

Understanding this job market polarization is crucial for designers and engineers developing products or services. It highlights a growing demand for solutions catering to either cost-sensitive, low-skill users or highly specialized, affluent users, with a shrinking middle ground.

What This Means for Your Design

Technology is making it harder for people to find jobs that pay a middle-class wage. Instead, jobs are either very low-paying or very high-paying.

How to use in your project

1.Reference this study when discussing the socio-economic context of your design project and how it influences user needs or market opportunities.

Add to My Project

Quick Cite

Paragraph starter

Research indicates that technological advancements are leading to job market polarization, with a decline in middle-wage employment and growth in low-wage service and high-wage knowledge-based sectors. This economic shift suggests that design projects should consider targeting specific income brackets, either focusing on affordability for lower-income users or on high-value, specialized solutions for higher-income professionals.

Source

Syracuse University Libraries (Syracuse University)

New York State Economic Status of Regions and Development Programs

journal · 2020

View source

Questions About This Research

What does the research say about technological shifts, not globalization, are polarizing nys job markets?: Designers should be aware of the shrinking middle-income segment and tailor their solutions to either the growing low-wage service sector or the expanding high-wage knowledge economy. Evidence: Syracuse University Libraries (Syracuse University) (2020).
Why does "Technological shifts, not globalization, are polarizing NYS job markets." matter for design?: Understanding this job market polarization is crucial for designers and engineers developing products or services. It highlights a growing demand for solutions catering to either cost-sensitive, low-skill users or highly specialized, affluent users, with a shrinking middle ground.
How can designers apply this research?: Designers should be aware of the shrinking middle-income segment and tailor their solutions to either the growing low-wage service sector or the expanding high-wage knowledge economy.
What were the main findings?: Technological change has a greater impact on reducing middle-wage jobs in NYS than globalization.. Job growth is polarized, with increases in low-wage service and high-wage knowledge-based occupations.. Regions outside the NYC-Albany corridor show stagnant employment growth and population decline.. Wage growth in most NYS regions lags behind the national average.
What research method was used?: Quantitative analysis of economic data.
How strong is the evidence?: Evidence strength is rated Strong effect, based on a 2020 journal from Syracuse University Libraries (Syracuse University).
What should I do differently in my next project?: When designing a new product or service, consider whether it will serve a user base with limited disposable income or a user base with significant resources and specialized needs.
What are the limitations?: The study focuses solely on New York State and may not be generalizable to all regions. The analysis is based on historical data up to 2017.