The United States is facing a severe long-term unemployment crisis.
Losing Skilled Workers is a Problem
People who have experience are lost to the labor market, resulting in:
- Shortage of skilled workers in businesses.
- Loss of people who can provide on-the-job training and mentoring.
- Lower productivity for businesses.
Not enough skilled labor, across industries, especially in the trades — carpenters, welders, electricians — and the healthcare sector means:
UPWARD WAGE PRESSURE
Fewer skilled workers means workers can demand higher wages, increasing labor costs.
Skilled employees can switch jobs easily and replacements are hard to find.
LESS OPPORTUNITY TO GROW
Without skilled people to set up and run new offices, business growth is stifled.
A Diminished Workforce
Higher wages and increased hiring costs coupled with lower productivity squeeze profits and diminish the capability of the national workforce.
How the Long-Term Unemployed Are Affected
No matter how experienced and talented they are, an employment gap means:
- Forced part time work.
- Working out of skill area.
- Declining real wages.
- Decreased buying power.
- Downward financial spiral.
Chris, a former platoon sergeant and military counterintelligence agent had leadership abilities, crisis management skills, and was meticulous about details. Yet, he was not receiving interviews for full-time employment because of his two year gap in employment after leaving the military.
After participating in a program to prepare veterans to become licensed insurance professionals, he got a job as a claims agent. Because of his leadership abilities, he became the manager of the Auto Claims Department within a year.