

The great mismatch

In the new world of work, unemployment is high yet skilled and talented people are in short supply. Matthew Bishop explains

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It seems to me that this article seems to suggest that it is not an issue of lack of jobs that causes unemployment, but a lack of skill or education. Sure workers are needed for blue-collared jobs. That need will never go away, but there are certainty many more opportunities for work growing in the technology industry and several other more skilled industry. Maybe the governments who are facing high rates of unemployment should focus less on making more low-skilled jobs and focus more on educating the young so that they can fill higher end jobs that are looking for workers.

SET Sail

Sure enough, the three billion people that are slowly getting better from life line support are all winners, and add the BRIC population and you find more than half the world population are all WINNERS

And sure enough too, the less than one billion you have in North America and EU, are LOSERS as far as their quality of life is faring and evolving, but: who cares ?

the economist and their theories are correct and the overall sum of wealth and health grows further or better, farther. Running around like headless chickens and working until 70/75 will be the new norm all around the globe. Is it not an enticing perspective ?


Globalisation is key here. The fact that 98% of the last 27 millions jobs created have been non-tradable could possibly be a reason for the downfall of the economy. Also, India has over a billion people and its unemployment rate is one of the lowest in the world. So why don't we put two and two together and start creating tradable jobs with India.

Jonathan Lam

gamesmith94134: the great mismatch

It is questionable on the great mismatch that my offered salary of my sanitary engineer equals two MBAs who works in my office for me in Shanghai. And, the worse of all, my sanitary engineer can only empty gabrbage baskets and clean bathrooms.

I once thought this sanitary engineer is responsible for the neuclear waste or chemical dispose; but my human resource corrected me that was used to call janitor in old days.

Damn American can fool everyone else with their fancy name, I got jived, It is a great mismatch---a 30K janitor equals two RBM110,000 financial accountants. It only happens in America.
And, who is kidding who? I am. ha ha.
May the buddha bless you

Jonathan Lam

Gamesmith94134: A quest for job

American must wake up! There is no middle class job for America like 30K available in America; it is the salary for managerial position or higher for Chinese, Indian, or anybody else and it is relatively high in the competitive globalized job markets. At present, the developed nations suffer the insolvency with sovereignty debt that is so high that they cannot even pay on its interests on the bonds that were sold; and those developed nations’ economy is on the brink of collapsing.

The bills of their equities are running on negative, and the pensions were gone after their investments failed to give a cent on return. It is why the fight within our Congress continues with the ceiling to the debts; shot term relief from some project is not going to solve the problem because it adds more to debt and the present employed will lose his job after the project ends.

So, we must face the globalization seriously with the present competitiveness and compatibility in jobs and corporations. First, our government must reinstate the best of our interest to compete with our products and salary; also, we must not allow the corporations to take advantages on the exchange rate with other nations to put us to skid row. I mean they must be taxed highly for its profits; in order to compensate our loss of jobs in its native land; then, outsourcing is not relatively restricted but administrates through the Chamber of Commerce and State Department.

Perhaps, our government must take itself seriously on the patent law that will distinguish on what is discovered and invented from our innovations. Some may think it cheaper to put its patents oversea rather than have its patents maintained in United States. Then, we can claim our innovations clearly and make them worthy especially when it is a product of ‘Made in America’, and manufactured by Americans. If we can acclaim our prestige of its making like the German made knife or Japanese made cars. Any things would rise to the parallel of Boeing airplane, then, American workers can take its bigger share of earning off the profit according to the competitive sales in the global markets.

There are ways our government can do to retain the capacity to compete in the globalized markets, if only we can put away or focus on the profit margin off the corporation, or appeased on the complacency of the tax our government collected. We must look deeper in how we can motivate the investment on the human capitals America holds just because they are consumers to goods and services we created. Otherwise, we may remain anemic if consumers fail.

Our government must restructure itself to make the better use of the taxes and human capitals. It is not just praise on the ideologues on the marketwise profitability because the balance of the monetary capital and human capital must be accountable in the future planning. So, it is not how to compensate the non-achiever in unemployment or pay welfare to the needed. It is how we can make it affordable to sustain a profitable environment to grow both in business and consumers.

The American Think tank must make the restructuring on the tax code and commercial law smarter in the best utilities of the monetary capital and human capitals. After all, money is very limited in our coming years even if we can revive ourselves from the financial crisis; again, please make it “affordable for both the business establishments and consumers”. Only our government can release our economy to grow after it finds its own footing relatively by comparisons to the globalized trading markets or job markets. There is no “dollar rules’ anymore; if we got debts. This is reality and we must be relatively compatible to the globalization on trading markets and job markets.

So, stop reminisce the middle-class of the 30K with $270,000 home; by contrast, most economists should shot at another level on middle-class of 20K and $170,000 housing our economy can return like a dream if more human capital is considered. If they do not have to strive to survive, and, they just live the way their fathers did. Can it be after deflation and depression? Punching its own face is not aiming to look health, it bruises.

May the Buddha bless you?


It's a popular fallacy that there could always be jobs for all.

There are millions or billions of dogs without jobs. No matter what training you give them they will never be able to do many high paying jobs.

The same will apply for millions or even billions of humans. If robots ever get cheap and capable enough, those humans will no longer be competitive. Many humans are just as incapable of designing robots as dogs are.

The lesser evil "upgrade path" for humanity involves "socialist style" countries. An unregulated "free-market capitalist" approach would inevitably result in a much nastier future.


So… labor is not a lump sum proposition. In other words, people will consume an infinite amount of any good simply because it can be produced? There’s no logical limit? Resources perhaps? Time to consume it? The only comparable advantage that’s left to people in the tradable sector is price, and that has nothing to do with skill, and all to do with local cost of living. How can you state “98% of the 27m net new jobs created in America between 1990 and 2008 were in the non-tradable sector” and not realize why. Let’s see… US$12.00 a day for a steel worker in China… and the in the U.S… can you live with that amount? Can you even cover for food? It’s not productivity that’s driving this; it's the race to the lowest bidder, who can live with less, and the bottom is near slavery (as exemplified by overexploited workers jumping of rooftops). The bigger question is, if what you are paid to build/create something is insufficient to ever buy it, who’s going to buy it? Keep in mind; everybody is chasing the same labor savings, so who’s left to buy the goods? And what about when automation renders even the slaves too costly by industry standards? I guess economists wager business owners will sell to each other, and the remaining 80%+ of humanity will go to an open field somewhere and commit seppuku. The fact is, human derived added value is dropping in virtually every sector. The future’s problem is not one of jobs, but of who keeps what’s left. I can only hope that I’m wrong, I truly hope so.

Jonathan Lam

Gamesmith94134: The jobless young, Left behind

• “Targeted programmes with one-on-one attention are what these young people need,” believes Paul Brown, a director of the Prince’s Trust. “Policies aimed at all young people will only make the neediest fall through the cracks.”

• Perhaps, I am blaming the governments is creating the euphoria that economist can make the most employments in form of automation effectively if all can follow in the government policy and structure of business that separate the workers and establishments. But, where is the job that just sweeping the main street or the cashier in the shop? It turned out that the driver with the sweeper that running through the downtown area; and the cashier became a machine that collecting money from the credit cards.

• I am not against the advanced technology to produce or perform; however, I think our government policy adopted such standard of efficiency in performance. So, our government shares their profits with tax with such gratitude that they would protect its formula on the success of the businessman and workers; it made rules only in setting it own profit sharing programs of the bonuses, salary raises, and pension plan----commercial. They standardize minimal earning, union participant for it workers and bonuses for it operators like the top rankers. Then, it is all settled based on their professionalism and profitability. So, all under-achievers can apply unemployment benefits.

• However, our government may neglect the shares for the services, as a consumer that they kept this business running. They may not be benefited from the established business; instead, they are being victimized by the standards of commercialization. Then, it is the ending of the entrepreneurism that the standard of professionalism took over all Ma and Pop store or entrepreneur’s operation which no under-achiever or no hiring below the minimal wages allowed. Since then, there are no felids for non-professionals or youths.

• As Vanburgh wrote on the youth felt they were cheated that job does not come as naturally as their parent’s generation; whereas, everything is cheaper and affordable, even more of jobs. So, criticism of the youth joblessness based on lazy, skill, and experience may not be the reality as the most youth feels. I blame on the success of the commercialization that most governments attempted to hold on to that they created the environment suits profits only. Each year new rules on business and new price on the foundation of the new establishment in business; more and more entrepreneurs are tripped over to these hurdles of standards, these older business have manipulated the politicians to add more hurdles till they rule the commerce and the governments.

• Now, if the government is serious about unemployment, they must undo their standards to open the fields to these non-professionals and youths. Many would have suggested the internships, and apprenticeship in the formal business establishments. It is the open end on the sub-prime salary to many workers in their trainings; and it is a good start. for the politicians knew the sub-prime rate on bond on treasury and sub-prime salary to the youths or under-achievers would be appreciated too for entrepreneurs too.

• Finally, grass-root for commerce and entrepreneurs is the way to put youths and under-achievers out of the unemployment. The government must lower its standard to cut the hurdles for the newer establishments to open its fields to strive in our present business world; and it would be a better time in developing the neighborhood business even for the smaller manufacturers to innovate another environment to grow. Since most have already maximized their capacity to expand, the government must take another route to deregulate for the new comers who accept sub-prime salary till becoming a professional.

• Many will be lost if unemployment lingers.

• May the Buddha bless you?


The youth unemployment rate globally can be reduced if younger students have more experience with the education they are getting. Internships and getting jobs and using what students learn in school should be emphasized more. Learning to work with different people, communicating and networking is very important especially when students start at a younger age. Then they would be able to get jobs easier versus just going to school and having no experience and therefore not being able to get a job when they are done with school. When going out in the workforce, its more of who you know than what you know.


So much nonsense in one article is mind boggling. To sum it up: there is no and absolutely no limit to the employment of labor in the produciton of goods and services. labor is the ultimate scarce factor in the world. the only reason in existence for involuntary unemployment is goverment intervention into a free market for labor.


The global financial crisis arrived at a time when there was euphoria about valuations that were unrealistic,be these physical or financial assets.Leap frogging technologies and innovations did create millions of jobs at the creative and end-use levels during the 90's and well into the new century. The fixing of the 000 bug was a booster to tech jobs and it helped developing countries provide cheap labor.This also opened up opportunities to talent drawn in for simple fixing to do more like maintenance and gradually development of newer tech products.
With soaring and highly competitive compensations the financing industry grabbed talents that moved across sectors.Imagine an Indian IIT graduate,from the most competitive selection process school in the world,an engineer,crunching numbers at a brokerage or a bank.It became a matter of pride and grater social standing to be in the financing industry regardless of professional qualifications that could otherwise be better productively used.It is saddening to find that innovation meant packaging and selling a bunch of securities and earning mind boggling bonuses.Manufacturing moved to more disciplined less ambitious labor force in China and they piled up real money while the rest of the world went after gains on paper.
Highly skilled and talented people are not being properly deployed is my view and availability is not an issue.It is in manufacturing and after sales that we are losing out. Outsourcing is another major pain and in a globalized world this cannot be helped. However, the role of the governments in providing jobs,not doles, has to get more significant. It does not mean direct employment,rather creating a situation as would better able the development of business and as a consequence the economy.
It now appears that there is tremendous sense in the Chinese ideology of government playing God where and when required.


Is anyone familiar with where the 7.5% natural unemployment rate is originally cited by Phelps? I'd like to do some further reading.


Being one of the highly educated and experienced unemployed, I find this articles has serious issues with reality. Today's HR people do not read and tend to hire "like me" with minimal qualifications, so no wonder companies are concerned about low level of skills of those allowed past the HR gate guards. In an area that primarily hires depending on who you know, not skills, it appears EEO does not exist in the work force.

Some companies' job listings have serious issues. For example, an administrative assistant with IT programming skills...that would discourage applicants.

I suggest company executives take a close look at their HR departments since they give the first impression to clients and potential clients.

Lib from Canada

I was disappointed to see Canada lumped in with the US on your coloured chart. The current unemployment rate in Canada (Statscan data for August 2011) is 7.3%. Canada should not be coloured the same as the US.


The situation is being more serious if we take into account the higher longevity and retirement plans in bankruptcy that are forcing employees to keep working additional years and to be occupying positions that in the past were for new employees.

Jonathan Lam


As you seen on the video, it is all stats and numbers; and it is fascinating. It shows where the heat spot of the technology that everyone throws their money in. As in solution to unemployment, we must focus on the ordinary that hundreds are born. High tech need education and they are only thousand to one. If you put the spread on the population, you realize there are needs of maintenance on the human capitals that significantly displaced, as it compared t those high tech jobs are. In the past years, we are too focused on the growth on the control that we rely on the technology that provided the tools in communication, transportation, and military duplex.

At certain point, we gave up the ma and pop store to Starbuck, Costco, Sam’s Club and Walgreens, such act centralize almost every markets; that it jeopardize the growth of the lower growth circuits where the ordinary people can offer their services with lesser of the union membership or students. Now, unemployment is high and more of the under-qualified to the positions just because our government did not decentralize the commerce that refocus on the under-regulated, lesser controlled establishments to put these people to work like neighborhood store hiring $7/hr high school student and non-senior adults to put the structure of labor to work.
Perhaps, I am calling on deregulation on the hour pay, or de-standardized commerce to reestablish a grass root based working environment. If you cannot find a $49,000 job to feed your family, you can have a job viable to survive. If the standardized structured business establishments may not accept under achievers only by the basis of educated; it must be deregulated since their position availability is limited.

It is a call on the rebuilding the neighborhood establishments with a lower requirements of standards to put more under achiever to work. Stop those fancy talks of basis hour/pay, licenses and regulations on opened business, why should the government push its people to earn more, the solution is earn less and make the jobs affordable to owners and workers? Everyone has a dream of millions dollar home and a decent job, it only hit you when it is available and it is not suitable for all, of the population of US, or the world. Take an example of China in the 80s, they grows.

Now, many are in jeopardy just because our government said American can earn $49000 annually if you work hard just becoming a middle class. And we are 16% below the poverty line, it is just another statistics with another question. If the lower standard can improve mobility to grow or up-grade the classification for just being poor; grass-root to commerce is a certain way to go.

I would get a better education with a full stomach even at an older age. I am forty year older or attending high school and I will work for less if only I can find such job other than McDonalds or Burger Kings. I do have a family to feed, pride is not my issue, and government is.

May the Buddha bless You?


I wholeheartedly agree with many points in this article; however, I
want to point out some rather eye opening facts, which are laid out
more visually in this video attached below. Our world is on the cusp of a technological revolution, where jobs are constantly being
automated, outsourced, and scrapped. Did you know: The top 10 jobs of 2010 didn't exist before 2003? Like all cycles, even the job market has its ups and downs. At the moment it might appear that we are in a slump but give it some time, new jobs are popping up out for nowhere. There is going to be a huge labor demand within the next few years.

This is an awesome video if you have some spare time:

Jan Bartscht

The cause of record global youth unemployment is simple. The labour and education markets are completely misaligned.

Young people simply do not have what it takes to get a good job in the modern economy. For example, the leadership, communication, creativity, critical thinking and teamwork skills they REALLY need to get a good job. We are the most over-educated and unemployed generation in the history of humanity. We know everything and have the grades to prove it but actually don't really understand how the world works and can't DO anything.

In short, the global education model has completely failed to adapt itself to the rapidly changing needs of the labour markets. Today, most employers are uninterested in your degree; they want your skills, experience and attitude.

The solution is NOT more education.

The solution is to re-integrate the labour and education markets. Germany does this well through its first-class apprenticeship system as this enables young people to combine learning with experience. Get young people working EARLIER and stop over-educating them on what is quite frankly boring rubbish that is irrelevant to their lives and costs far too much to teach. Most young people (aside from specialists such as engineers and medics) do not need to know Pythagoras' theorem or the vast majority of knowledge they learn at school and university to perform the job they will have in the future.

Instead, they need to develop core skills such as communication, teamwork and critical thinking and getting experience early so that they can actually understand how they can really contribute.

Jonathan Lam

Gamesmith94134: Unemployment is high yet skilled and talented people are in short supply

It is refreshing when I read what yF3LsJQH6a wrote of The Human Use of Human Beings,and what Norbert Wiener wrote of the automatic machine,


I recalled a case of how a restaurant owner responded to the economical trend to hire to max his profit. He hired a cook, a dishwasher, a bus boy, a hostess, and couple waitresses to operate the daily operation of the restaurant. It was great for business and everyone was happy till the cook demanded a raise.

He gave in for his great cook and fired the bus boy; then, the waitresses want more for busing for the dishwasher. So, the owner fired one waitress, and he made another waitress to bus the dishes and washed them when she was free; then the dishwasher was gone. The business then was slowing down. Soon the owner stepped in to hosting and busing the dishes.

Later, all waitresses were fired; the cook washed the dishes and cook simultaneously and the owner waited on table and bused the dishes.

One day, the restaurant was getting busy, the cook and the owner had an argument; and then, the busiest restaurant in town was closed.

In better understand the story of the above; it suffers the efficient bias and cross-over in the divisions of labor. It is not the cause of the failing economy or outsourcing that ruined the globalization or electronic age; however, ‘the precise economic equivalent of slave labor’ and ‘the economic conditions of slave labor’ may put the owner to ponder how the division of labor can be broken and his profit margin tore the structure to achieve efficiency. Eventually, the best restaurant was closed under the influence of the owner and its workers.

In the new world of work, the problem may root in the foundation of business and its cycles. However, the unemployment is high; we may question on the valid cost of the labor that the workers rely on the machine or computer; did the owner ever think of eliminate another position to compensate another and becoming efficiency bias? And the act of cross-over in the divisions of labor sacrifices ones employment to gain better profit, why not?

A bus driver without its conductor, he cannot stop people evade fare, or graffiti on the bus, or even a fight in the bus. How efficient is the driver in protecting the interest of the bus company for his higher pay? Or, how the conductor can help to protect the driver and the bus itself?

It is just a parable I imagine why our developed country is losing to the other. If the division of labor is well supported by affordable income, the question on unemployment is high and skilled and talented is really in short supply, or why is one being high yet skilled and talented?

“Any labor which competes with slave labor must accept the economic conditions of slave labor.” It remained true for its acceptance of economic condition. Why not? Unemployment is high yet skilled and talented people are in short supply

May the Buddha bless you?


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