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As College Graduates Cluster, Some Cities Are Left Behind

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Wages in U.S. manufacturing are declining as the U.S. regains competitivness with Mexico, China and other emerging market countries in manufacturing, through a combination of productivity from new machinery and lower wages. At the same time as this revives U.S. manufacturing this is lowering wages in manufacturing based economies in the midwest and other parts of the country. This can be seen in cities like Dayton, Ohio, where in the past good paying jobs could be found in manufacturing without a college diploma. Many of these jobs paying $15-$20 an hour are being replaced by lower paying jobs paying $10 an hour. With the cost of college education already spiralling beyond the reach of ordinary incomes, and college debt reaching $1 trillion and harder to payoff, the move to lower wages increases the probabilities that college will remain elusive to children in these families. The automated plants and lower number of workers needed to operate machinery in new and modernized plants means unemployment in manufacturing will see slow growth. This is likely to lead to continued high unemployment in cities that lag behind in college education for opportunties outside of manufacturing and in manufacturing jobs. This is also why more experts are calling for government, college and private sector support for vocational training to improve job and income opportunties.

American Cities- A growing divide in 2012-2013 based on the proportion of college graduates in the population

11/02/2008

Cities like Washington D.C., San Francisco, Raleigh, N.C., have high proportion of college graduates in the population- as high as 40% in Washigton D.C.- with resuliting lower unemployment of about 7.5% or less. Other cities like Dayton and Youngstown in Ohio and Bakersfield, California, have a low proportion of college graduates- 20% in Dayton- and high unemployment of about 10.5%

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