With the recession taking its toll on demand, employers forced to reduce their supply in the short-term has inevitably lead to job cuts. The new unemployed work force in need of employment can’t find it. Yet, so many jobs are available, specifically in specialized positions such as “accounts, actuaries, data analysts, physical therapists, and electrical engineers, as well as those in specialized fields like biotechnology.” Recruiters are just having a hard time filling these positions (according to here) because even with unemployment nearly reaching 10%, no one is qualified.
With state governments cutting funding to state universities, (here) low enrollment for specialized fields in science and technology and an aging workforce specialized in manufacturing and construction, the new unemployed are faced with dilemmas. With no job, one has to face receiving unemployment benefits and dip into savings in order to get by, which leaves little room for investing in education for a future career, especially when one has worked at the same company the rest of their life.
The new unemployed are going to face a tough time. Unemployment rates were not expected to reach so high, given the hopes after the stimulus. (here) With rosy expectations that we are expected to recover sooner or later, the economy may grow, as the U.S. workforce remains to become more productive, but a large percentage of the workforce will remain part of the structurally unemployed in the long-term, not just the short-term like most economists expect.
I am beginning to suspect that double-digit unemployment will be common place if nothing new from Washington is decided. The continued policy of providing only a limited amount of funding for education is the punishment for the new unemployed — even though it is proven that public funding in higher education pays off (here). The new administration will need to realize its role for the creation of this new demographic due to our government’s lack of commitment to educating our workforce.