Tags: Jobs | Crisis | Employers | Help

Report: Jobs Crisis Exists for Employers Who Can’t Find Help

Monday, 02 April 2012 01:44 PM

How much of the jobs problem in the United States a matter of mismatch, how much is a weak recovery, and much is created dependence after years of public assistance?

It’s hard to say with specificity, but employers who cannot find good help anywhere these days grow increasingly frustrated, reports CNN.

Unemployment remains high at 8.3 percent, far above the Federal Reserve’s target of between 5.2 percent and 6 percent.

Editor's Note: Obama’s Economic ‘Fix’ is In . . .

“We hosted a job fair where we hired 40 people. Twenty-five showed up for training. Only two lasted more than a couple of weeks,” complains Dema Barakat, owner of Velocity Merchant Services in Downers Grove, Ill.

“People work for three months and get themselves fired so they can collect unemployment for another year.”

An improving economy, meanwhile, means business is growing, but some employers are having trouble getting qualified people in the door. Part of the problem is what economists call “structural unemployment,” where people are on the hunt but have none of the skills required by existing jobs.

Numbers are all over the place, but anywhere from 1.5 million to 3 million jobs are empty not because there don’t exist but because nobody is able and willing to do them, according to various economists. A McKinsey study suggests that 40 percent of jobs listed sit open for six months or more for lack of candidates.

It likely to only get worse. Up to 3 million manufacturing jobs will go empty as the baby boomers retire in the coming decade, according to one Georgetown University estimate, and it’s not clear who is ready to take on those tasks.

Michael Fredrich, owner of manufacturer MCM Composites in Manitowoc, Wis., says he has jobs today he can’t fill. He needs four people to run automated presses.

These are entry-level jobs that start at $8.50 an hour, but he finds he can’t compete with government benefits and food aid that add up to more.

“We are creating a permanently dependent class of people in the country who won't ever want to work again,” he tells CNN. “Harsh talk, but that's our experience.”

Editor's Note: Obama’s Economic ‘Fix’ is In . . .

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Monday, 02 April 2012 01:44 PM
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