The Skills Gap - 6 Million Jobs Unfilled

[Brian4Liberty]

This is becoming more and more a media talking point. Generally this is pushed with certain goals in mind, typically which is more public money for the government-education complex and more immigration. The push is on.

For example, a story on NBC today was titled: "Six Million Open Jobs But Workers Lack Key Skills".

The following is an older article.

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5.6 Million Reasons to Stop Ignoring the Skills Gap
By Mike Rowe - February 15, 2016

Last week, my personal toilet at mikeroweWORKS Headquarters coughed up a disgusting clog of bad advice, noxious bromides, and odorous stereotypes, leaving my entire office awash in the horrific stench of myth and nonsense. With no licensed plumbers on hand, I was forced to address the problem myself, pulling each offending fallacy from it’s cardboard tube of allegorical poo, and confronting it with a mix of government statistics and righteous indignation. As always, my objective was twofold – to shine a light on America’s widening skills gap, and debunk the growing perception that “all the good jobs are gone.”

This latest effort is called “Hot Under the Blue Collar,” and it was sponsored by One Hour Heating and Air Conditioning, Benjamin Franklin Plumbing, and Mister Sparky Electric. Like so many other companies who rely on a skilled workforce, the people who own home service businesses are struggling to find the next generation of tradespeople who will keep our lights on and our pipes clear. Right now, thousands of good jobs – literally thousands – exist within these three companies alone. But no one seems to want them, and the reasons have nothing to do with low pay, poor benefits, or a lack of available training. They have more to do with the metaphorical miasma of misinformation currently clogging my commode. Consider:

Back in 2009, 12 million people were out of work. Most Americans assumed that could be fixed with 12 million new jobs. Thus, “job creation” became headline news. But then, the Bureau of Labor and Statistics quietly announced that companies were struggling to fill 2.1 million skilled positions. That statistic generated a lot of questions.

How could so many good jobs go unfilled when so many people were out of work? Why weren’t people lining up for these opportunities? Why weren’t apprenticeship programs exploding with eager applicants?

Democrats blamed corporate greed. “Just offer workers more money,” they said, “and the skills gap will close itself.”

Republicans blamed the unemployed. “See? The jobs are out there,” they said. “Now get off your lazy ass and get one!”

Consequently, the skills gap became politicized, and ultimately overshadowed by unemployment figures, interest rates, inflation, and just about every other economic indicator. And so, the existence of 2.1 million good jobs got very little attention.

Now, eight years later, unemployment is down, interest rates are under control, and inflation is in check. But the overall labor participation rate is very low, and the skills gap is wider than ever. In fact, the latest numbers are out, and they are astonishing. According to the Department of Labor, America now has 5.6 million job openings.

Forget your politics for a moment, and consider the enormity of what’s happening here. Millions of people who have stopped looking for work, are ignoring 5.6 million genuine opportunities. That’s not a polemic, or a judgment, or an opinion. It’s a fact. And so is this: most of those 5.6 million opportunities don’t require a diploma – they require require a skill.

Unfortunately, the skilled trades are no longer aspirational in these United States. In a society that’s convinced a four-year degree is the best path for the most people, a whole category of good jobs have been relegated to some sort of “vocational consolation prize.” Is it any wonder we have 1.3 trillion dollars in outstanding student loans? Is it really a surprise that vocational education has pretty much evaporated from high schools? Obviously, the number of available jobs and the number of unemployed people are not nearly as correlated as most people assume.

I’m no economist, but the skills gap doesn’t seem all that mysterious – it seems like a reflection of what we value. Five and half million unfilled jobs is clearly a terrible drag on the economy and a sad commentary of what many people consider to be a “good job,” but it also represents a tremendous opportunity for anyone willing to learn a trade and apply themselves.

As long as Americans remain addicted to affordable electricity, smooth roads, indoor plumbing and climate control, the opportunities in the skilled trades will never go away. They’ll never be outsourced. And those properly trained will always have the opportunity to expand their trade into a small business. But if we don’t do something to reinvigorate the trades, and make a persuasive case for good jobs that actually exist, I’m afraid the metaphorical crap in my literal toilet will never go away, and millions of great opportunities will go down the drain.

In closing, please – don’t let anyone tell you that opportunity is dead in America. That’s the biggest myth of all, and in honor of President’s Day, I propose we smash that turd to pieces and flush it away with all due speed. In a few weeks, mikeroweWORKS will release another batch of Work Ethic Scholarships. This year, I put a call out to a few large companies that rely on skilled labor, and they’ve agreed to help me fund a new round. I’m grateful. Along with the help of many on this page, we’ve raised enough to make a sizable splash in mid March.

I’ll also provide a link to “Hot Under the Blue Collar,” which probably won’t win a Cleo, but just might keep the conversation lively.

Stay tuned…
Mike
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More: http://mikerowe.com/2016/02/stopignoringskillsgap/

Mike Rowe places the blame on a general disdain for many blue collar skilled trades. That may be part of the problem, but certainly not all of it.

Employers suffer from unrealistic expectations. They don't want to search for workers, and they don't want to train workers. Pay is not increased to attract workers. They are like the person who complains they can't find a partner, mostly because they want nothing less than perfection, and don't want to put in any effort on their part.

On the other hand, the general wealth of our society creates alternative paths of least resistance, paths other than real work. Government handouts, private charity, unending "education" and fawning parents are top of the list. Why work, when basic needs can be found without it. All a person needs to do is lower expectations.

[RJB]

In the old days you could get an apprentice wage to get on the job training, but that was cruel.

Nowadays you get to go indebt to go to school for a certificate for something you used to learn hands on and then you get to pay to work as an intern, but at least you are not making below minimum wage. And all that now comes with a license and a certificate!

Progress is awesome!

[Brian4Liberty]

Politafact weighs in....

Ivanka Trump right about role of 'skills gap' in unfilled jobs
By Louis Jacobson on Friday, June 16th, 2017

We checked a statement by Ivanka Trump during a June 12 interview on "Fox & Friends."

During an interview with Fox & Friends, Ivanka Trump discussed one of the challenges of the current economy -- that job vacancies exist, but many people who aren’t working aren’t qualified to fill them. Her comments came during a week that the White House had devoted to messages about the American workforce.

"There are currently 6 million jobs available in this country that are due in part to the skills gap," she said.

When we took a closer look, we found that Trump was generally on target, but that the impact of the "skills gap" -- the fact that many potential workers don’t have the right qualifications to take jobs that are currently open -- is worth some explanation.

Are there 6 million jobs available?

On the numerical side, Trump was spot-on.

Every month, the federal Bureau of Labor Statistics releases data from a survey called the Job Openings and Labor Turnover Survey, or JOLTS. One of the key statistics in the survey is job openings nationally.

In the most recent month for which data is available -- April 2017 -- the survey found 6,044,000 job openings across the country. That represents the first time this statistic has ever crossed the 6 million line, going back to the earliest data reported in 2000.

Since a measure of the raw number of job openings is affected by overall population growth over time, we’ll also note that the rate of job openings -- which is adjusted for the size of the U.S. population -- also tied a record in April, reaching a level equaled only in two previous months going back to 2000.

So Trump has accurately portrayed the scale of how many jobs are available today in the United States.

Is this large number of job openings 'due in part to the skills gap'?

Trump used cautious wording; Economists agree that a mismatch of skills is clearly a "part" of the problem, as she put it. That said, they cautioned against making the oversimplified argument that the skills gap underlies all 6 million job openings.

On the one hand, "some of the current job vacancies are unquestionably due to the skills gap," said Gary Burtless, an economist with the Brookings Institution. "If job-seeking jobless workers and promotion-seeking but under-employed workers had exactly the right skills, many of the current job vacancies could be filled faster."

At the same time, for many job openings, the barrier isn’t necessarily the lack of a college degree or specialized training, he said. In many cases, the "barrier" can be overcome with on-the-job training and experience.

"There are many job openings with more modest skill requirements," Burtless said. "They require the new hire to learn some extra skills to become more proficient and productive in their new jobs. A large percentage of job seekers have the capacity to learn those skills on the job pretty quickly."

He added that "employers who think every job opening can be filled immediately and with a perfectly trained worker are either living in a dream world or living through a Great Depression in which millions of highly trained workers are desperately seeking a job." The reality, he said, is that "for most current job vacancies, the skill set of today’s job seekers is sufficient to fill the great majority of the vacancies."

Another economist, Aparna Mathur of the American Enterprise Institute, has testified that for many manufacturing jobs, a drag on hiring comes not only from a skills gap but also an "image gap."

Millennials in particular, she said, may have a "tainted" image of what high-tech manufacturing jobs look like today, assuming instead that they are like such jobs decades ago -- "dirty, grimy, repetitive or dangerous." Survey data shows that "many workers are no longer interested in manufacturing jobs and there appears to be a stigma attached to manufacturing work," she wrote. "Few parents want their children to work in this industry, and manufacturing is the last career choice for people between the ages of 19 and 33."

In an interview, Mathur said it’s difficult to tease out how much of a factor the skills gap is in today’s job openings. She suggested that it may be the biggest factor -- but she also cautioned that the image gap is particularly significant for younger workers and added that other issues exist as well, including an unwillingness among some Americans to relocate to areas with jobs.

And of course, even in an efficiently humming economy, any survey taken at a given point in time will find many jobs that are simply open due to transition, or what economists call "churn." Many of these job openings will be due to happenstance rather than structural problems with the skills gap.

Our ruling

Trump said, "There are currently 6 million jobs available in this country that are due in part to the skills gap."

The number she cites is correct, and she’s right to say that the skills gap plays a role. Economists warn against overestimating the role played by the skills gap in all 6 million job openings, both because other factors play a role (such as the image gap) and because the skills barriers posed are often more modest than having to earn an academic degree or to obtain specialized training.

We rate her statement True.
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http://www.politifact.com/truth-o-me...-gap-unfilled/

[Dr.No.]

There was a farm in Alabama (or some other state, I cannot remember) that had to hire legal workers after the town enacted strict penalties for hiring illegal immigrants. The farm owners set pretty high wages, with benefits and time off, and got many people to sign up. But after one day, a large portion of the people left. They found the work too difficult...

[Anti Federalist]

Mike Rowe places the blame on a general disdain for many blue collar skilled trades.

I think Mike Rowe is spot on.

Now, he won't come right out and say it, but part of the problem is the current generation of millennial, metrosexual, male fairies and man-boys, who don't posses the basic skill set to change a light bulb.

Most men my age entered adulthood with at least a working knowledge of basic skills: mechanics, electrical, plumbing and carpentry to name a few.

I got hands on training in school and on the job in welding, cutting, brazing, forging and basic machine work before I was 18 as well.

Played right, these skills could lead into a lucrative career without too much effort.

Now, because of stifling Grundyism and nanny-statism across the board, most young men don't know how to work anything more than a computer game and sail fawn.

[Danke]

I always laugh at articles saying there is a pilot shortage. No there is a pay shortage. Raise the pay, and people will put in the time and money to qualify for the job.

[oyarde]

I always laugh at articles saying there is a pilot shortage. No there is a pay shortage. Raise the pay, and people will put in the time and money to qualify for the job.

I see no shortage . Last time I was over @ 160th Special Operations Aviation Regiment Airborne in '83 & '91 , seemed like they had lots of pilots .

[Origanalist]

In the old days you could get an apprentice wage to get on the job training, but that was cruel.

Nowadays you get to go indebt to go to school for a certificate for something you used to learn hands on and then you get to pay to work as an intern, but at least you are not making below minimum wage. And all that now comes with a license and a certificate!

Progress is awesome!

You must spread some Reputation around before giving it to RJB again.

[Origanalist]

I think Mike Rowe is spot on.

Now, he won't come right out and say it, but part of the problem is the current generation of millennial, metrosexual, male fairies and man-boys, who don't posses the basic skill set to change a light bulb.

Most men my age entered adulthood with at least a working knowledge of basic skills: mechanics, electrical, plumbing and carpentry to name a few.

I got hands on training in school and on the job in welding, cutting, brazing, forging and basic machine work before I was 18 as well.

Played right, these skills could lead into a lucrative career without too much effort.

Now, because of stifling Grundyism and nanny-statism across the board, most young men don't know how to work anything more than a computer game and sail fawn.

There was a farm in Alabama (or some other state, I cannot remember) that had to hire legal workers after the town enacted strict penalties for hiring illegal immigrants. The farm owners set pretty high wages, with benefits and time off, and got many people to sign up. But after one day, a large portion of the people left. They found the work too difficult...

I think AF identified the problem. I have zero problems finding work, if fact I turn away a job a week on average. And I'm in construction and 59 years old. We as a society are turning out what? Look around, it's not hard to see.

[Dr.No.]

I think AF identified the problem. I have zero problems finding work, if fact I turn away a job a week on average. And I'm in construction and 59 years old. We as a society are turning out what? Look around, it's not hard to see.

Scott Sumner mentioned recently that there is a bit of a geographical issue. There is a lot of demand, for example, for construction workers in the coasts. There are a lot of people who could do construction work in the middle of the country, where there isn't much demand. Getting people to move isn't that easy. Not only is there reluctance to increase wages, but reluctance by workers to uproot their families and move, invest in a new place, etc.

[timosman]

Scott Sumner mentioned recently that there is a bit of a geographical issue. There is a lot of demand, for example, for construction workers in the coasts. There are a lot of people who could do construction work in the middle of the country, where there isn't much demand. Getting people to move isn't that easy. Not only is there reluctance to increase wages, but reluctance by workers to uproot their families and move, invest in a new place, etc.

Spend 2 hours each way commuting ......

[heavenlyboy34]

I think AF identified the problem. I have zero problems finding work, if fact I turn away a job a week on average. And I'm in construction and 59 years old. We as a society are turning out what? Look around, it's not hard to see.

You must spread some Reputation around before giving it to Origanalist again.

I salute you, old man. ~salutes~

[heavenlyboy34]

I think Mike Rowe is spot on.

Now, he won't come right out and say it, but part of the problem is the current generation of millennial, metrosexual, male fairies and man-boys, who don't posses the basic skill set to change a light bulb.

Most men my age entered adulthood with at least a working knowledge of basic skills: mechanics, electrical, plumbing and carpentry to name a few.

I got hands on training in school and on the job in welding, cutting, brazing, forging and basic machine work before I was 18 as well.

Played right, these skills could lead into a lucrative career without too much effort.

Now, because of stifling Grundyism and nanny-statism across the board, most young men don't know how to work anything more than a computer game and sail fawn.

Pretty much. By the late 90's when I took welding/metal work it was just an elective and only taught in one school in the district. The reason learning all those skills has gone away is because schooling is political-and the politicians want a "knowledge economy". (and they can't even get that right) Now you have to teach kids that stuff yourself or find an industrial arts school. SMFH.

[Dr.No.]

Pretty much. By the late 90's when I took welding/metal work it was just an elective and only taught in one school in the district. The reason learning all those skills has gone away is because schooling is political-and the politicians want a "knowledge economy". (and they can't even get that right) Now you have to teach kids that stuff yourself or find an industrial arts school. SMFH.

Hmm, no, I think that is not a correct assessment of the situation.

The fact is that Americans tend to have the "dream big" mentality. The idea of telling a kid, even someone who is 12 or 13 that college maybe isn't for them, and that they should go to a trade school (like they do in many other parts of the world) doesn't really jive with the culture. Everyone wants to be the next CEO, pop culture icon, etc. At the least, people are all aiming to be engineers, scientists, doctors, etc. There is this push to highly educate everyone; kids need to be told that you are better off being a good plumber than a bad engineer.

[heavenlyboy34]

Hmm, no, I think that is not a correct assessment of the situation.

The fact is that Americans tend to have the "dream big" mentality. The idea of telling a kid, even someone who is 12 or 13 that college maybe isn't for them, and that they should go to a trade school (like they do in many other parts of the world) doesn't really jive with the culture. Everyone wants to be the next CEO, pop culture icon, etc. At the least, people are all aiming to be engineers, scientists, doctors, etc. There is this push to highly educate everyone; kids need to be told that you are better off being a good plumber than a bad engineer.

There's that too.

[VIDEODROME]

Doesn't almost every major industry claim to have a shortage of workers? We don't have enough Doctors. We don't have enough STEM skilled workers. We can't get people to learn Computer Programming. Or we can't get people to work 'Dirty' Trade Jobs which is Mike Rowe's niche issue.

I think a lot of it is bull$#@! and sending confusing messages to eager people who waste a lot of time and money on education or training and get turned away due to lack of experience.

The shortage I think does exist is skilled professionals or trades workers with high proficiency in their skills. What is missing are enough junior level or mid level positions open for people to start at.

Finally, employers have created this job market with high demands for experience, yet none of them want to wind up being the ones who provide training to a candidate who then leaves after getting that experience. It's a mess they're not dealing with so they whine to pundits saying Colleges are not turning out quality candidates. Meanwhile many people graduate from college and wind up in $#@!ty retail jobs with crippling student loans.

[tod evans]

I think AF identified the problem. I have zero problems finding work, if fact I turn away a job a week on average. And I'm in construction and 59 years old. We as a society are turning out what? Look around, it's not hard to see.

You must spread some Reputation around before giving it to Origanalist again.

[tod evans]

Meanwhile many people graduate from college and wind up in $#@!ty retail jobs with crippling student loans.

Good.

If enough people get $#@!ed maybe they'll band together and slay the $#@!er...

[edit]

Then again today's college student can't hardly be goaded into a fight let alone retaliation.

I expect more whining.

[Origanalist]

Good.

If enough people get $#@!ed maybe they'll band together and slay the $#@!er...

[edit]

Then again today's college student can't hardly be goaded into a fight let alone retaliation.

I expect more whining.

And if he or she can be goaded they are likely to be shipped off overseas to 'fight for our freedoms'.

Let's face it, the military looks better to young people with actual blood coursing through their veins than the freak show that higher learning has become. And then they come back here and protect our freedoms, good and hard.

There is a lot of truth in what VIDEODROME is saying but I think it's always been that way to one degree or another. I don't that that aspect of it was really much different when I was just starting out on my own.

[tod evans]

And if he or she can be goaded they are likely to be shipped off overseas to 'fight for our freedoms'.

Let's face it, the military looks better to young people with actual blood coursing through their veins than the freak show that higher learning has become. And then they come back here and protect our freedoms, good and hard.

There is a lot of truth in what VIDEODROME is saying but I think it's always been that way to one degree or another. I don't that that aspect of it was really much different when I was just starting out on my own.

Kill the free $#@! programs and everything would level out in a matter of months...

[oyarde]

Scott Sumner mentioned recently that there is a bit of a geographical issue. There is a lot of demand, for example, for construction workers in the coasts. There are a lot of people who could do construction work in the middle of the country, where there isn't much demand. Getting people to move isn't that easy. Not only is there reluctance to increase wages, but reluctance by workers to uproot their families and move, invest in a new place, etc.

What that really means is those people are too smart to move to high tax , high cost of living areas where they would end up with less .

[Anti Federalist]

Let's face it, the military looks better to young people with actual blood coursing through their veins than the freak show that higher learning has become. And then they come back here and protect our freedoms, good and hard.

My son is gung ho for that, for those reasons. I made my case as to why I did not agree, but had to let it go at that...anything more would have just made him dig his heels in further.

[Anti Federalist]

Pretty much. By the late 90's when I took welding/metal work it was just an elective and only taught in one school in the district. The reason learning all those skills has gone away is because schooling is political-and the politicians want a "knowledge economy". (and they can't even get that right) Now you have to teach kids that stuff yourself or find an industrial arts school. SMFH.

Yup, exactly.

[Brian4Liberty]

Doesn't almost every major industry claim to have a shortage of workers? We don't have enough Doctors. We don't have enough STEM skilled workers. We can't get people to learn Computer Programming. Or we can't get people to work 'Dirty' Trade Jobs which is Mike Rowe's niche issue.

I think a lot of it is bull$#@! and sending confusing messages to eager people who waste a lot of time and money on education or training and get turned away due to lack of experience.

The shortage I think does exist is skilled professionals or trades workers with high proficiency in their skills. What is missing are enough junior level or mid level positions open for people to start at.

Finally, employers have created this job market with high demands for experience, yet none of them want to wind up being the ones who provide training to a candidate who then leaves after getting that experience. It's a mess they're not dealing with so they whine to pundits saying Colleges are not turning out quality candidates. Meanwhile many people graduate from college and wind up in $#@!ty retail jobs with crippling student loans.

Agree. It's not just one industry, and it's not just "whiney", incapable young people. It's also the unrealistic demands of employers (another whiney trait). It's an all around whiney society, full of excuses and demands.

Kids think they deserve to be paid $100k with no skills and no experience, while not having to work hard, while employers want highly skilled, experienced workers they can pay minimum wage, who magically appear in front of their faces the moment they need them.

[Danke]

My son is gung ho for that, for those reasons. I made my case as to why I did not agree, but had to let it go at that...anything more would have just made him dig his heels in further.

Merchant Marine Academy?

[Brian4Liberty]

Kill the free $#@! programs and everything would level out in a matter of months...

That would certainly help on the worker side of the equation, but it won't change anything in the situation where parents take care of their children well into adulthood...

On the other hand, the general wealth of our society creates alternative paths of least resistance, paths other than real work. Government handouts, private charity, unending "education" and fawning parents are top of the list. Why work, when basic needs can be found without it. All a person needs to do is lower expectations.

[Brian4Liberty]

Spend 2 hours each way commuting ......

What that really means is those people are too smart to move to high tax , high cost of living areas where they would end up with less .

Quality of life plays a part. Not everyone wants to live or work in a human hive.

[Brian4Liberty]

I think AF identified the problem. I have zero problems finding work, if fact I turn away a job a week on average. And I'm in construction and 59 years old. We as a society are turning out what? Look around, it's not hard to see.

Experience with connections usually results in demand (barring major systemic changes).

The old dilema applies today more than ever. Can't get work without experience, can't get experience without work...now it's called a "skills gap". What "solutions" will be proposed?

[timosman]

Experience with connections usually results in demand (barring major systemic changes).

The old dilema applies today more than ever. Can't get work without experience, can't get experience without work...now it's called a "skills gap". What "solutions" will be proposed?

Muh edukation.

[Brian4Liberty]

Muh edukation.

And once they are all conditioned to be good little social justice warriors, they still won't have any skills, other than being useful idiots.