Middle class declines in the majority of US metropolitan areas

A new study from Pew shows that the middle class did not do well in many metro areas between 2000 and 2014:

The report by Pew Research Center found that the share of the middle class fell in 203 of the 229 U.S. metropolitan areas examined from 2000 to 2014, including major cities such as New York, Los Angeles and Chicago, which saw a relatively sharp drop in its middle class.

For many areas, a big culprit in the declining middle was the falloff in manufacturing jobs during that 14-year period, when factories shed about 5 million workers from their payrolls nationally…

The news was not all downcast, especially for metro areas in coastal and border regions that have benefited from the boom in technology, trade and resources…

Among the 229 metro areas, which constitute about 76% of the U.S. population in 2014, there were slightly more areas that saw a bigger increase in the share of upper-income population than lower-income adults. Still, Pew’s Kochhar did not view that as a big win for the American economy. The median incomes of the lower, middle and upper tiers all shrank between 2000 and 2014, he said.

Three quick thoughts:

  1. The continued effect of losing manufacturing jobs cannot be overstated: this has hurt numerous cities for decades. It is not easy for any large city to transition from such jobs to opportunities in new sectors.
  2. Looking at this data at the level of a metropolitan region is helpful because it hints at broad patterns within regions that are often segregated by social class and race. The phenomenon of the rich and poor living right next to each other as well as trendy and wealthy communities getting a lot of attention is not exclusive to cities; similar patterns can be found in suburban areas.
  3. Connected to the second point is that solutions to income issues could come at the level of the entire region rather than within individual communities. How might entire regions help the middle class? Why don’t more large cities and surrounding suburbs work together on these issues? (I know why they don’t but that doesn’t mean that it wouldn’t benefit many local residents.)

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