Saturday, November 6, 2010

Skills Gap Spells Structural Unemployment, The Worst Kind of Unemployment

In this article from Business Week, companies talk about the lack of skills in the workforce. While “skills” have traditionally been very specific skills related to a certain job, the term is increasingly broad, covering “skills” like critical thinking, problem solving, and communicating effectively in collaborative environments. This may seem to harsh a conclusion, but I agree with these firms, and posit the cause to our education system. This looks like structural unemployment to me, which if it is, would spell prolonged high unemployment rates as the work force has to retrain itself. If true, it’s a damaging prospect to the U.S. economy.

On the bright side, the writer of this post possesses those skills and would love to eliminate that skills gap for a company. Just saying.

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