Why is There a Gap in the Job Market? (Peter Orszag)

Why is There a Gap in The Job Market? With the slow recovery of the U.S. economy, there is uncertainty about the future of the job market. This The 2013 infographic sheds some light on the topic by exploring Unemployment rate is the latest trends in employment and why companies are 7.3% advertising job openings--but not necessarily filling them. Labor Force Growth by Decade 1.5 Over the 2010-2020 decade, 54.8 million total job openings 1.2 are expected; 61.6% 0.9 will come from the need to replace 0.6 workers who retire or 1990-2000 2000-2010 2010-2020 leave an occupation. Job Openings Trends Over the past 3 years, the number of job openings 50%, has risen almost E but actual hiring has gone 5% up by less than Unemployment Rate by U.S. State a13) 2 9% 8.9% - 8% 7.9% - 7% 6.9% - 6% 5.9% - 5% < 5% Occupation and Demand for Level of Education Degree Type Needed + Percentage Growth 25 The health care and social assistance 20 sector is projected to gain the most 15 jobs by 2014, followed by 10 professional & business services, and construction. Doctoral or professional degree IPost Secondary non-degree award I Master's Degree Some college, no degree Bachelor's Degree High school diploma or equivalent I Associate's Degree I Less than high school Largest Number of Projected Job Loss in U.S. III -182,000 -122,000 -92,000 The Postal Service Government Jobs Knitting Mills Why Is There a Gap Between Job Openings & Job Fulfllment? According to research by Peter Orszag, economist and current Vice Chairman of Corporate and Investment Banking at Citigroup: Theory #1 There is a mismatch between the work that companies need done and the skills that workers have. Theory #2 Employers are offering jobs at wages that are too low to attract good applicants. Theory #3 Companies are drawing from "internal" labor markets. A variety of indicators -including fewer people moving to take new jobs--suggests that companies are often filling openings from within. SOURCES: http://www.bls.gow/newS.release/ecopro.htm (Bureau of Labor Statistics) http://www.bloomberg.com/news/2013-05-21/as-jab-flow-slows-americars-get-stuck-in-place.html : http://www.bloomberg.com/news/2013-08-13/with-so-many-jab-openings-wty-so-litle-tiring-html