The number of job openings in April rose to the highest level seen since records were kept. There are now over 6 million job openings. Yet, there are still 6.9 million unemployed people. Now, it would seem logical that this problem would resolve itself, right? There are 6.9 million unemployed people and 6 million open jobs. Unfortunately, it’s not that easy.
Analysts suggest that about half of the 6 million unemployed (3 million) have the desire to work but lack the skills to fill open positions. This is a skills-gap problem. Employers do not need low skilled employees. Rather, our economy has evolved and the demand now is for skilled employees who can contribute immediately. These are employees with the right skills, education and experience. The pool of potential employees in the jobs market cannot fill the demand for these openings.
Compounding the problem, some employers have moved away from training employees due to the cost of training. They also fear losing those trained employees to another company who can offer better compensation, benefits, and opportunity. This is a big problem for businesses as they struggle to defend against other companies recruiting their trained employees.