US Shifted From 28% Factory Jobs to 72% Services as Inequality Hit Developed-World High
Updated
Updated · The Boston Globe · Jul 6
US Shifted From 28% Factory Jobs to 72% Services as Inequality Hit Developed-World High
1 articles · Updated · The Boston Globe · Jul 6
Summary
Manufacturing’s share of US jobs fell to 9% last month from 28% in 1961, while services rose to 72%, framing Larry Edelman’s 65-year look at the economy since his birth.
That shift unfolded alongside slower but steady expansion: the economy averaged 3% annual growth over the period, but just 2.4% in the past decade after eight recessions in his lifetime.
Inflation’s biggest turning point came in the early 1980s, when Paul Volcker’s near-20% interest rates drove CPI down from 14.8% in March 1980 to 2.5% by July 1983.
Rising asset values and financialization lifted wealth, with the S&P 500 returning 10.6% annually since July 1961—turning $1,000 into nearly $725,000—while 401(k)s displaced many pensions.
Median household income reached $83,730 in 2024 and poverty fell to 14.2%, but the middle 40%’s wealth share slid to 29.5% from 35.8% in 1985, leaving US inequality the highest among developed nations.