Afternoon Must-Read: Gary Burtless: Unemployment and the “Skills Mismatch” Story: Overblown and Unpersuasive

Gary Burtless: Unemployment and the “Skills Mismatch” Story: Overblown and Unpersuasive: “We shouldn’t be surprised when shrinking unemployment…

…makes it harder for employers to fill job vacancies…. Economists have examined the skill mix of workers laid off from shrinking industries and compared it with the mix of occupational skills needed in industries that are growing…. To an economist, the most accessible and persuasive evidence demonstrating a skills shortage should be found in wage data. If employers urgently need workers with skills in short supply, we expect them to offer higher pay…. Where is the evidence of soaring pay for workers whose skills are in short supply?… It is cheap for employers to claim qualified workers are in short supply…. When employers are unwilling to offer better compensation to fill their skill needs, it is reasonable to ask how urgently those skills are really needed.”