The New Economy, in vocational psychology dictionary

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Dictionary of Vocational Psychology

The New Economy

The shift of compensation for productive work from one dominated by the managerial work of a few and the industrial labor of many to one dominated by the information-intensive work of a few and the service work of many. Also referred to as the information economy or post-industrial economy. New economy nations (such as the United States) are often paired with so-called old economy nations to where lower-wage industrial work has shifted (e.g., Mexico and China). Thus, the new economy depends on the creation of a global labor market, and therefore is consistent with trends toward globalization in general. In a sense, the new economy rewards individuals who specialize in the development of information- and service-related talents and expertise with an aim to serve a global market, just as it penalizes those individuals whose skills and abilities are better suited to old economy roles. Career interventions and vocational professionals are today struggling with how to counsel individuals confronted with a new economy reality that is increasingly compentitive on a global scale.

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