Who’s Really To Blame for Unemployment?

Michelle Chen
In These Times
 

(Clementine Gallot / Flickr / Creative Comments)

Though some protesters at an 'Unemployment Olympics' event in Tompkins Square Park, N.Y. blamed joblessness on 'the boss,' a new report suggests that the economic climate is more at fault. (Clementine Gallot / Flickr / Creative Comments) Guided by the mythology of the “American dream”—the idea that, given the opportunity, the deserving will excel and rise above their peers—politicians often attribute unemployment to a mystical “skills gap.” If people can’t find a job, the logic goes, they clearly weren’t fit to be hired. As a consequence, many legislators tout specialized training programs or education reforms as possible solutions to America’s seemingly intractable jobs crisis. But a new study shows that blaming the “skills gap” for unemployment makes about as much sense as blaming a mass famine on “excess hunger.”
A recent analysis by the left-leaning Economic Policy Institute shows that elevated unemployment is due to a general lack of demand in the job market, fueled by overarching economic decline. In other words, this is not a problem that can merely be addressed by retraining workers or revamping the education system.

In the report, economist Heidi Shierholz outlines this economic imbalance by comparing unemployment at different levels of education. Her results reveal that workers are suffering across the board:

Workers with a college degree or more still have unemployment rates that are more than one-and-a-half times as high as they were before the recession began. In other words, demand for workers at all levels of education is significantly weaker now than it was before the recession started. There is no evidence of workers at any level of education facing tight labor markets relative to 2007.

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