Fukuyama warns on middle-class collapse: report

The collapse of middle-class employment in developed countries is upsetting the global geo-political balance, American political commentator Francis Fukuyama says, according to The Australian Financial Review.

The newspaper reports the professor told a Centre for Independent Studies forum in Sydney that although the American economy is in full-scale recovery, companies are choosing not to reinvest and expand because they do not expect demand to increase.

Middle-class jobs are ceasing to exist or being exported to low cost countries, Professor Fukuyama said.

"America has 50 federal programs to retrain workers and improve their skills, but the results have been negligible," he said, the AFR reports.