Nuance on Skills

When the New York Times publishes a scathing editorial against the whole notion of a skills gap, it alarms me, because so much of adult education and training advocacy has coalesced around this idea. It also alarms me because whatever the economic data tells us about the root causes of unemployment, it doesn’t take away from the fact that we still have a substantial number of people who are trying to improve their basic skills, enroll in job training programs, and/or acquire industry credentials. We wouldn’t have waiting lists for services if this wasn’t the case.

Many economists have been arguing for some time that the skills gap has not been a major cause of unemployment. But a case for investing in skills doesn’t need to be dependent on this argument. I’ve often cited an old blog post from Jared Bernstein as an example of a way to argue for skills that isn’t dependent on proof of a skills gap.

The Times piece suggests that skills gap arguments will be increasingly met with skepticism. It’s going to be important not to let that turn into an argument against investing in skills altogether.

New York Times Not Super Enthused About the Skills Gap Argument

The New York Times Editorial Board has come down hard—and I mean really hard—on the idea that our stubbornly high unemployment rate can be blamed on a skills gap (the notion that good jobs are going unfilled due to a lack of qualified applicants). The Times calls this a “corporate fiction” designed as excuse to keep wages down and get the government to pay for training corporate America doesn’t want to pay for:

If a business really needed workers, it would pay up. That is not happening, which calls into question the existence of a skills gap as well as the urgency on the part of employers to fill their openings. Research from the National Bureau of Economic Research found that “recruiting intensity” — that is, business efforts to fill job openings — has been low in this recovery. Employers may be posting openings, but they are not trying all that hard to fill them, say, by increasing job ads or offering better pay packages.

Corporate executives have valuable perspectives on the economy, but they also have an interest in promoting the notion of a skills gap. They want schools and, by extension, the government to take on more of the costs of training workers that used to be covered by companies as part of on-the-job employee development. They also want more immigration, both low and high skilled, because immigrants may be willing to work for less than their American counterparts.

This editorial appeared in the Times on Saturday. What’s interesting about this is that we are just five days away from a Senate hearing on reauthorizing the Workforce Investment Act, which is the major piece of legislation that authorizes government spending on workforce training. I’ll be interested to see how some of my colleagues in the workforce development field respond to this.

Sequestration Quote of the Day

“Austerity, including sequestration, is the economic version of medieval leeching.”

—Jared Bernstein, in a New York Times op-ed from May 3rd

In which case, we might as well just go ahead and appoint this guy to run the federal reserve.

By the way, Bernstein’s ideas about how to stimulate more job growth in the U.S. are worth reading if you are interested in such things. He’s following up with some Q&A’s on the subject over at his blog, starting with this post.

New Aspen Institute Report: “Helping Adult Learners Navigate Community College and the Labor Market”

After all that depressing news about college in my last post, the least I can do is share this new report, Helping Adult Learners Navigate Community College and the Labor Market, released by the Aspen Institute’s Workforce Strategies Initiative back in February— although I just got a notice about it today.

The report looks at the challenges adult learners face “as they attempt to enter community college, persist to completing a certificate or degree, and successfully transition to employment,” and is designed to assist workforce development leaders, community colleges, and workforce investment boards help adult learners navigate both  the community college campus and the labor market.