3. Geography matters. Exacerbating the skilled vs. unskilled problem are geographic mismatches: workers with desired skills are often in short supply where companies are hiring, while places with the highest unemployment may have little job creation. This geographic imbalance is occurring both across national borders and within them. In the United States, while unemployment stands at more than 12 percent in Nevada (which was badly hurt by a massive real estate bubble), only three states away, Nebraska has only 4 percent of the workforce out of a job. And surprisingly, compared with their parents and grandparents, today's working-age Americans are less likely to relocate to find work. Other advanced economies, such as Britain, France, and even Germany, have similarly stark differences in regional levels of growth and employment. Unemployment in southern Europe is almost twice as high as in northern Europe. Within Britain, for example, the unemployment rate is 6 percent in the southeast and 12 percent in the northeast. Policymakers must find new ways to encourage mobility, for instance through tax incentives, such as generous tax deductions for moving expenses incurred in connection with employment. Some companies are creating virtual jobs that allow them to hire people wherever they are located -- gaining access to a broader base of talent and saving on real estate costs in the process.