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Although jobs were being created in the service sector, most of them were low-paying, part-time, or temporary positions with limited benefits, if any. Corporate downsizing in all sectors of the economy meant that permanent salaried workers were being replaced by part-time and temporary workers, who earned less, received fewer benefits, and had little job security. Automation and foreign competition dealt a devastating blow to the manufacturing sector, which continued to shed workers; new workers in this sector were paid lower wages and were less likely to be unionized. Well-paying, high-tech jobs required a greater degree of skill, creativity, and knowledge of computers than manufacturing jobs did. Free-trade agreements, such ass NAFTA and GATT, forced U.S. businesses to become more competitive and to cut costs whenever possible; some people felt that such agreements would encourage U.S. companies to move their operations to nations where labor costs were lower.

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Q: What two developments that appear to threaten the job security of US workers in the mid 1990s?
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