Why is it so hard to find "qualified workers"?

B: Malcolm G Boswell

As a labor economist, I get a lot of questions about the job market from a variety of sources (job seekers, employers, economic development folks, local and state agencies, etc.) Most recently I have had a lot of businesses ask me why is it so hard to find qualified workers. There is no simple answer to this question because, on one hand there are currently more unemployed job seekers than there are job listings (1.2 job seekers for every job listing) according to the most recent statistics from the Bureau of Labor and Statistics (BLS). However, this does not mean everyone who is unemployed and looking for a job has the skills that match the job openings available, even if many of those job seekers are highly qualified. However, there is more to the story than that.

Most recently I was at a large barbecue with friends, some who are managers at various industries who know me for many years and know I am a labor economist. So one of them asked me this question: "Why is it so hard to find workers... "Qualified" workers?" he said using the dreaded air quotes. He went on to explain that his company was trying to recruit due to expansion, and were having a hard time getting workers that met their needs (his definition of "qualified workers"). As I began to explain, I notice a few people began to listen in and I found myself trying to explain the dynamics that caused this situation, but realized I was hitting them with ESTS or what is more traditionally known as "Economist Sleepy Time Syndrome". So I quickly switched strategies and began jotting down a graph of the business cycle, and the counter cycle of the unemployment rate and then adding lines to explain the other factors. While people became very engaged and added their own lines to my graph, in the end, my friend and the other eaves droppers felt that I had successfully answered their (his) question in a way they could understand. I was so happy I thought I could replicate my graphic explanation but realized I had a nearly torn paper napkin with so many lines that once made sense, now would make Picasso jealous of my abstract creation. So, I created the following video to explain the labor market dynamics that make it so hard for businesses to find "qualified workers". Please click on the link to view the video on Youtube: https://youtu.be/o_KFhlTnhVI

Comments and feedback welcome as no one person can foresee all the variables that impact this model.

Enjoy!