The Yoga Instructor Economy

Paul Krugman on the jobs of the future:

And here’s the thing: Most of the manual labor still being done in our economy seems to be of the kind that’s hard to automate. Notably, with production workers in manufacturing down to about 6 percent of U.S. employment, there aren’t many assembly-line jobs left to lose. Meanwhile, quite a lot of white-collar work currently carried out by well-educated, relatively well-paid workers may soon be computerized. Roombas are cute, but robot janitors are a long way off; computerized legal research and computer-aided medical diagnosis are already here.

And then there’s globalization. Once, only manufacturing workers needed to worry about competition from overseas, but the combination of computers and telecommunications has made it possible to provide many services at long range. And research by my Princeton colleagues Alan Blinder and Alan Krueger suggests that high-wage jobs performed by highly educated workers are, if anything, more “offshorable” than jobs done by low-paid, less-educated workers. If they’re right, growing international trade in services will further hollow out the U.S. job market.

I completely agree with this analysis and also with Krugman’s view that “We need to restore the bargaining power that labor has lost over the last 30 years, so that ordinary workers as well as superstars have the power to bargain for good wages. We need to guarantee the essentials, above all health care, to every citizen.”

That said, this is why I’ve been saying that yoga instructors have the job of the future. Nothing in these trends suggests that the actual quantity of janitors is going to increase in the future. If anything, falling demand for office workers implies that the future can have fewer. So is the future a smallish number of wealthy office workers served by an “aristocracy of labor” of unionized janitors awash in a pool of unemployed people enjoying free health care? Presumably not. The people of the future will be richer than the people of today, and therefore will more closely resemble annoying yuppies. Nicer restaurants are more labor-intensive than cheap ones, and the further up the scale you go the more specialized skills (think sommelier) come into play. Annoying yuppies take yoga classes, or even hire personal trainers. Artisanal cheese is more labor-intensive to produce than industrial cheese. More people will hire interior designers and people will get their kitchens redone more often. There will be more personal shoppers and more policemen. People will get fancier haircuts.

This is where I think education does get back into the picture. Most of these are jobs that require some skills. Personal services generally exist on a spectrum between “things a person might hire someone else to do because it’s a pain in the ass” and “things a person might hire someone else to do because it’s difficult to do it well.” You hire a maid because you don’t want to clean the toilet. You go to Komi because you can’t cook as well as Johnny Monis. There’s more money and prestige to be had as you move up the maid-Monis spectrum and there’s a need for some kind of mechanism to help people move up it. That sounds like “education” to me, though not necessarily the kind of education we’re handing out.