This is how we’ll end up with severe shortages of truly skilled labor and high unemployment of those who lack the necessary skills.
The labor force and the job market are referred to as if they were monolithic structures. But they’re not monolithic, they are complex aggregates of very different cohorts of age, skills, mobility, education, experience, opportunity, potential and motivation.
As a result, numbers such as the unemployment rate tell us very little about the labor force and the job market in terms of what matters going forward. So what does matter going forward?
1. Demographics–the aging and retirement of key sectors of the work force.
2. Skills and experience that will be increasingly scarce due to mismatched demand for skills that are diminishing as older workers retire.
3. What skills and experience will be demanded by re-industrialization, reshoring and expanding the electrification of the economy….