Educated and unemployed or underemployed

One of the reasons that the unemployment rate is stuck above 9% is that some of America’s best-educated workers are unemployed.  The weak economy is the biggest contributing factor to high unemployment levels (consumer demand for goods and services is down and therefore fewer workers are required), but there are many workers with specialized skills who are out of work because their skills do not match the skills that employers are looking for.

It is estimated that the unemployment rate is about 4.3% for people with a college degree and over 25 years of age.  This is up from 2.2 % that was the rate when the recession began in December 2007.  About 1/3 of the increase is due to a skills mismatch. 

Workers without a high school diploma are experiencing a much higher rate of unemployment of 14.3% which is up from 7.7% when the recession began.

In general,  there are a shortage of jobs overall for less-educated workers, but for those with higher education there is also a job gap between people with some specialized skills and those with other specialized skills.  For example, in September 2011, nationwide there were 1,874 jobs postings on the Internet for civil engineers and 157,384 job postings for computer-software engineers.  This reflects the reality that some employers are having difficulty finding workers to fill some high-paying positions.

So what about unemployed people with a skills mismatch?  They face the choice of taking a lower-skilled job or returning to school to learn additional skills.  Unfortunately both of these choices do not to take full advantage of some of the most productive workers in the country. 

Theoretically, realignment should take place over time with more people gravitating toward training for careers with a shortage of workers.  The demand for specialized skills will continue to change however as the employment structure in the United States changes in response to consumer demand, improvements in technology and a host of other factors. 

The Northfield Public Library has a great Reference book in the Business and Employment collection titled the Occupational Outlook Handbook (2010-2011 edition).  Published by the U.S. Department of Labor, this book is a treasure trove of information that provides detailed employment projections in all sectors of the economy.  It is a must consult resource for anyone considering embarking upon a new career.  In addition to detailed job descriptions, it discusses training, current employment information, earnings, and sources of where to obtain additional information are also provided.

 Sources:  Wall Street Journal (online version), October 3, 2011 and the Occupational Outlook Handbook 2010-2011. Washington, D.C.:  U.S. Department of Labor, Bureau of Labor Statistics, c2010.

For more information call the library at 507-645-6606.