The American labor market stands at a crossroads. Several surveys and studies point to 5 million or more unfilled job openings in the United States by 2020. One of the major reasons is a shortage of skilled labor.
Why Do People Lack Skills Necessary for Jobs?
Many positions require multiple skills that combine aspects of more than one specialty. For example, a manufacturing supervisor job means a worker needs to know how to manage a team, how to fix machines and how to put together the basic engineering processes that run a production line. Very specific knowledge for these types of jobs incorporates experience with metallurgy, physics, computers, electrical wiring and management. These high-tech jobs should have pay commensurate with the skills needed.
How Can Companies Attract the Right Workers?
One of the best things employers can do to attract the correct, skilled workers is raising the basic pay scale. In supply-and-demand economics, as demand rises and supply falls, the price goes up. Therefore, the best workers for a particular position should draw the highest wages and the best benefits. Going to college helps increase a worker's future pay.
How Does Higher Education Fit Into This System?
Higher education in America can solve the skills gap problem. Many employers require a college degree, whereas in the past, they did not. For instance, 65 percent of job openings for executive or administrative assistants need a college degree. However, only 19 percent of current executive assistants have college degrees. People need to attend college to get better jobs, whereas that may not have been true in the past. Colleges, trade schools and universities, unfortunately, are slow to adapt because programs need accreditation and time to develop.
What Do Companies Do Now?
Employers can do two things now to alleviate a labor shortage due to unskilled workers. Businesses can create their own training programs to ensure incoming workers have the specific skills needed to fulfill their job duties. A less attractive option is giving current workers more hours, including overtime, to get tasks done.
Photo Courtesy of Stuart Miles at FreeDigitalPhotos.net
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