Tags: McKinsey | Full | US | Employment | Return | 2020

McKinsey: Full US Employment Won't Return Until 2020

Tuesday, 14 Jun 2011 09:29 AM

A new report from McKinsey says that only in the most optimistic scenario will the United States return to full employment, meaning that everyone who wants to work can find a job, before 2020 — and that’s only if we manage to create 21 million new jobs.

The report also says that achieving this outcome will require sustained demand growth, rising U.S. competitiveness in the global economy and better matching of U.S. workers to jobs.

The reasons, according to the McKinsey analysis, are that recoveries are increasingly becoming "jobless" due to firm restructuring, skill and geographic mismatches between workers and jobs, and sharp decline in new start-ups.


jobs200geytyt.jpg
(Getty Images photo)
“The U.S. work force will continue to grow until 2020, but under current trends, many workers will not have the right skills for the available jobs,” the report says.

“Technology is changing the nature of work: jobs are being disaggregated into tasks, work is becoming virtual, and firms are relying on flexible labor,” trends that offer new opportunities for creating jobs in the United States, which some companies do not fully appreciate.


Progress on the following will be essential for reviving the U.S. job creation machine, says McKinsey:

• Developing work forces' skills to better match what employers seek;

• Expanding workers' share of global economic growth by attracting foreign investment and spurring exports;

• Supporting emerging industries and ensuring more of them scale up in the United States, and reviving new business start-ups; 

• Speeding up regulatory decision-making that blocks business expansion and new investment.

Bloomberg reports that a string of weaker-than-expected reports on the U.S. economy, including a rise in the unemployment rate to 9.1 percent in May, has increased the odds the Fed will keep its benchmark interest rate near zero into next year.

© 2017 Newsmax Finance. All rights reserved.

1Like our page
2Share
StreetTalk
A new report from McKinsey says that only in the most optimistic scenario will the United States return to full employment, meaning that everyone who wants to work can find a job, before 2020 and that s only if we manage to create 21 million new jobs. The report also...
McKinsey,Full,US,Employment,Return,2020
296
2011-29-14
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved