Structural Unemployment

Topics: Unemployment, Economics, NAIRU Pages: 3 (912 words) Published: April 2, 2013
Structural Unemployment
The unemployment has being a big issue for United States since the big recession started in 2008. According to the United States Department of labor the unemployment rate is 8.2 percent for may 2012, in others words, around 14.000 million of people in USA are unemployed; however, and spite of the great necessity of unemployment people for finding a job there are approximately 3.500 million of open jobs that cannot be fill because of the mismatch of labor force’s skills and the job’s requirements. This mismatch is called structural unemployment by economists, and is characterized for the difficulty of business to fill vacant jobs, the lack of work force skills and changes in demography and complex of the job market demand. American businesses are facing a paradox — high unemployment and the inability to fill key jobs in their organizations. Most of the jobs available are related to internet technology, engineers, and manufactures. Despite of the high rate of unemployment, technology related business find difficult to fill vacancies. For instance, Technology giant Siemens Corp., the U.S. arm of Germany's Siemens AG (SI.N), has over 3,000 jobs open all over the country. Moreover, engineer’s industries are also suffering for this shortage in talent; according to the seventh annual talent shortage survey from staffing firm ManpowerGroup is the second job most difficult to fill because of the deficit of knowledge and experience of applicants. Additionally, manufacturing as well is hurt by a dearth of skilled workers. According to the Labor Department's latest Job Openings and Labor Turnover survey, there are 264,000 open jobs in manufacturing in May 2012, may be due to the rising wages in china that forced companies to bring production back to USA, and also because manufacture work is not attractive for the young labor force. This big gap in skills has been driving by failures of American education. There are three clear factors: American...

Cited: • Industries Glance: Manufacture
• 2011 skills Gap Report
• U.S. Manufacturers Say There Aren 't Enough Skilled Workers To Fill Job Openings
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