The Increasing Skill Gap in the US Workforce (1299)

With high unemployment rates in many countries around the world, it may seem odd that a labor shortage is one of the most pressing global issues today. In fact, many people think there are not enough jobs to go around. However, digging a little deeper, it is evident that there are job openings available, but not enough workers with the specific skills needed to fill those positions. This is one of the leading factors that is contributing to the current global labor shortage. While some blame it on educators and some blame it on employers, either way there is a very real problem that needs to be addressed by this generation before it gets out of hand.

In a recent survey done by the American Society for Training and Development, nearly eighty five percent of employers said there was a skills gap within their organization, up from seventy nine percent in 2009. This shows how common this skill shortage is, and worse, that it is on the rise. Most of these gaps are middle and high skills jobs. According to the National Skills Coalition, middle-skill jobs account for fifty four percent of the labor market in the US. In comparison, only forty four percent of Americans in the labor market have the skills and training to perform such jobs. This is where the vast majority of the shortages currently exist. However, industries within the STEM fields are also experiencing a skill gap, and this is expected to only increase. Take the IT industry as an example. As this field is rapidly expanding, there is a constant need for high-skill workers. According to CompTIA, more than fifteen million businesses rate the aggregate skill level of their IT staff as less than optimal. This is a large problem now that looks to be ever worsening in the coming years.

The effects of these skill gaps are many and far reaching. In larger, more advanced economies this dearth of knowledge can lead to long term joblessness and higher unemployment rates. Additionally, in the US, it has caused a growing gap between economic classes as low-skill workers are left behind in industries like agriculture or trapped in urban poverty. However, it's not only the workers who are being affected; companies that cannot find workers are also taking a hit as their growth is being stunted, costing these companies money. It is clear that the growing skill deficit is negatively affecting workers, business, and even the global economy.

There are many factors that contribute to this skill gap, but most lie within the educational system. When people think of a lack of skills, many assume this problem exists on the college level, but this is not true: it starts in elementary school. It is children that need to learn the basic skills that are the foundation of the thinking processes that will stick with them for the rest of their lives and careers. Encouraging children into the STEM fields from the moment they enter school will help naturally direct more students into higher education in these areas.

One of the most pressing and growing problems is the percentage of low income students. According to an analysis by Columbia University's National Center for Children in Poverty, forty five percent of people who spend at least half of their childhood in poverty are poor at age thirty five, while only eight percent of those who spend less than half of their childhood in poverty are poor at age thirty five. While home life and values also contribute, it is undeniable that the education of poor children is not prioritized in the US. Low income areas have lower funding for public schools, leading to worse teachers, fewer materials, and less access to technology, all of which has a huge impact on the students and their future success.

Another factor that influences the skill gap is the poor link between businesses and educational institutions, sometimes referred to as the skill pipeline. With a large portion of America's workforce about to retire, it is more crucial than ever that employers and the systems that train future employees are well connected. Fixing this lack of cooperation would help educators better prepare their students to join the workforce. Currently, the curriculum at most institutions does not cover practical aspects needed in the working world. This leaves many employers searching for employees with the experience and skills necessary to perform jobs, while the students thought their school was giving them what the companies sought. As a result, some students drop out of school, further widening the skill gap that is already facing shortages as the baby boomers retire.

One of the wealthiest and optimistic generations, baby boomers have shaped many of the social and economic institutions we see today. During the eighteen-year period following World War II, seventy million American were born; a drastic increase in births compared to the national trend. This generation grew into one that broke away from the norms established by previous generations and ending up having the highest income level anyone had seen. However, the Baby Boom generation is currently in the process of retiring, resulting in a large portion of the workforce leaving. As of 2019, there was a labor shortage of seven million people. As more baby boomers retire, this shortage will only continue to grow.

A possible solution to this inevitable problem is encouraging older workers and retirees to hold part time jobs, via a government subsidy if necessary. This would not only provide some desperately needed labor, but also give individuals more time to plan and save for retirement. Additionally, this would give baby boomers longer to mentor less experienced workers while also opening up high-level jobs for younger workers.

Unfortunately, there is another level to this problem: as a whole, the world fertility rate has been decreasing. Currently, over eighty countries are below the replacement level of 2.1 children per woman and most are barely avoiding population stagnation. The biggest reasons for this in industrialized countries is contraception, higher education leading to later marriages, and more women in the workforce. Thus, it is only a matter of time before the labor shortage is due to a simple lack of people.

To fix this, people should be incentivized to have more kids. In America, couples are having less children because women cannot work when taking care of a child. Unfortunately, maternity leave is usually short or mostly unpaid. The loss of these wages while also handling the expenses of a child can put a family into debt. As the only developed country that does not regulate paid maternity leave, the US is far behind its peers with only eleven percent of women getting any kind of paid maternity leave. While twelve weeks of unpaid maternity are guaranteed, a three-month old child is hardly capable of looking after themselves, resulting in a parent taking more time off work or paying for expensive childcare.

Creating a universal paid maternity leave would make it easier for couples to have multiple children. However, additionally giving men a paid parental leave would be even better, making the family closer, and decreasing the stress of having a newborn in the house. In the short term this may set companies back financially, but the increased worker satisfaction will increase capital in the long run. Alternatively, parental leave could be paid by the government. This could stabilize the economy by providing for a future without a labor shortage.

Obviously, no single action will improve the growing skilled labor shortage. However, multiple solutions like improving basic education, focusing education on skill shortages, decreasing retirees, and increasing the population overall can soften the blow and result in the best possible outcome. If these changes are taken seriously and implemented across the globe, economies and standards of living will have the opportunity to reach an impressive height.