Under Pressure: The Squeezed Middle Class

Middle-class households feel left behind and have questioned the benefits of economic globalisation. In many OECD countries, middle incomes have grown less than the average and in some they have not grown at all. Technology has automated several middle-skilled jobs that used to be carried out by middle-class workers a few decades ago. The costs of some goods and services such as housing, which are essential for a middle-class lifestyle, have risen faster than earnings and overall inflation. Faced with this, middle classes have reduced their ability to save and in some cases have fallen into debt. This report sheds light on the multiple pressures on the middle class. It analyses the trends of middle-income households through dimensions such as labour occupation, consumption, wealth and debt, as well as perceptions and social attitudes. It also discusses policy initiatives to address the concerns raised by the middle class, by protecting middle-class living standards and financial security in the face of economic challenges.
Also available in: French
Where have the middle class jobs gone?
This chapter discusses past, recent and prospective labour market trends for middle-class workers and their families. The chapter begins by analysing the job occupations of middle-class workers and its evolution in recent decades. It then examines how labour market polarisation and non-standard forms of work have affected the middle-income class in terms of jobs and wages. It also analyses the impact of labour market and demographic changes on the chances of households being middle-income. Finally, it assesses the risks of automation and employment prospects for the current occupations of middle-income workers.
Also available in: French