We often hear the claim that hiring remains slow because employers
can’t find workers with the necessary education and skills. This week’s economic snapshot shows that the labor force does not lack the right workers—rather, there is a massive job shortage at all levels of education. Workers with a college degree or more still have unemployment rates close to twice as high as before the recession began.
We often hear the claim that hiring remains so low in this
economic recovery because employers can’t find workers with the
education and skills they need. A look at the data, however, shows that
this is not what’s driving today’s labor market weakness. The figure
below shows there is a massive job shortage right now relative to before
the recession started at all levels of education. While workers
with higher levels of education face substantially lower
unemployment rates, they too have seen a large percentage increase in
unemployment. Workers with a college degree or more still have
unemployment rates that are close to twice as high as they were before the recession began.
At 7.8 percent, the unemployment rate is still more than three percentage points higher than the 4.6 percent average of 2007. Unemployment is high not because workers lack the right education or skills, but because employers have not seen demand for their goods and services pick up enough to need to significantly ramp up hiring. It is not the right workers we are lacking, it is work.
At 7.8 percent, the unemployment rate is still more than three percentage points higher than the 4.6 percent average of 2007. Unemployment is high not because workers lack the right education or skills, but because employers have not seen demand for their goods and services pick up enough to need to significantly ramp up hiring. It is not the right workers we are lacking, it is work.
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