Is there a “skills gap”? Many economists and policy wonks have debated whether or not persistent unemployment is related to a lack of workers with just the right training to fill today’s jobs. JP Morgan’s Jamie Dimon famously wrote an argument in favor of a lack of skills as the major problem, which Paul Krugman then proceeded to tear apart. The arguments continue back and forth with little resolution.
So is there such a problem? The short answer is “no”, but the long answer is “yes”. An excellent piece by James Besson in Harvard Business Review (HBR) un-asks the question neatly and shows that there is indeed a problem developing the right skills in a changing economy – but it’s not something we can fix simply by changing what kids learn in college. It’s much more endemic to a dynamic, open economy all around.