http://www.washingtonpost.com/opinions/employers-lack-confidence-not-skilled-labor/2013/05/05/757340c8-b411-11e2-9a98-4be1688d7d84_story.html
This article begins by discussing the possibility that the current unemployment problem is caused by a lack of skilled workers to fill positions. It then explains why this view is not necessarily tenable in the current environment and proposes that the unemployment problem is caused by a lack of confidence among employers.
A lack of confidence on the part of both businesses and consumers have been large contributors to the relatively slow pace of the current recovery. It would be a significant boost to the economy if it were possible to raise confidence, which can certainly be helped by both monetary and fiscal policy. A boost in business confidence could lower the unemployment rate further and help the economy recover faster.
This article begins by discussing the possibility that the current unemployment problem is caused by a lack of skilled workers to fill positions. It then explains why this view is not necessarily tenable in the current environment and proposes that the unemployment problem is caused by a lack of confidence among employers.
A lack of confidence on the part of both businesses and consumers have been large contributors to the relatively slow pace of the current recovery. It would be a significant boost to the economy if it were possible to raise confidence, which can certainly be helped by both monetary and fiscal policy. A boost in business confidence could lower the unemployment rate further and help the economy recover faster.
I would not totally write off the idea that the unemployment is due to a lack in skilled workers. In one of my other econ classes we have recently been discussing how there is indeed a growth in the amount of unskilled workers. This is thought to be caused by the cost of college tuition being to high for people. If people can't go to college or some sort of technical school then they will be lacking necessary skills for the workplace.
ReplyDeleteThere should reform to that in order to get the workforce moving again. Over every other thing, education leads to technical advancement which allows for larger growth and sustained growth over the time frame.
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