Job Deficit or Skills Deficit?

When several automotive companies announced plans to open new factories in Michigan and other states across the country, people cheered. Once those job seekers learned that the positions required skills they didn't possess, the cheering stopped. While a job deficit indicates a lack of available jobs, these companies show that the jobs do exist, but they cannot fill those positions because employees lack the proper skills.

Ohio and Michigan were two of the states affected the most by the recession. Ohio lost more than two million factory jobs in less than three years, but the state showed signs of recovering when medical manufacturing plants opened in various cities. While those companies need workers, they cannot find enough who are skilled and qualified. Cleveland alone lost more than 40,000 manufacturing jobs, and while the city saw more than 4,000 of those positions returned, it still has one of the highest unemployment rates in the state. Employers note that the problem isn't a job deficit but rather a skill deficit.

Russ Zimmer found that unemployment in Ohio rose to more than 7 percent in June of 2013, which is higher than any other month of the year. Some claim that the number climbed because more jobs came to the state and more workers began applying for those jobs, which changed who appeared in the report. Despite its growth, Ohio still needs more jobs for its residents. The job deficit in the state reached more than 210,000, though the state recently saw more than 6,000 new job openings.

The job deficit in America reached more than 10 million in 2013, and while President Obama still pushes for companies to come back to the United States and for companies to increase the number of available positions, the deficit continues growing. The country now faces a deficit in terms of both skills and jobs because when the jobs do exist, companies cannot find workers with the necessary skills. Those handling business operations claim that they can't hire new employees because of the recession, but hiring those workers is the key to the success of the country. Workers have more money that they can use to help the economy by shopping and dining. New jobs can also help reduce the foreclosure rate in the country because workers can afford to keep roofs over their heads. The term "business operations" refers to the income a company makes and the number of assets it has, which can help the company secure its future. Without workers who have money to spend, businesses cannot succeed.

The job deficit in America exists because companies cannot afford to hire new workers because of the recession, but the recession won't end unless people go back to work. Those companies hiring new workers often cannot find qualified workers who have the proper skills, and until workers get the necessary training, the country will continue to deal with a job deficit stemming from both the lack of needed skills and the number of available jobs.

(Photo courtesy of Ambro / freedigitalphotos.net)