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Five things that are making it more difficult to get advanced economies back to work.

BY BYRON AUGUSTE, SUSAN LUND, AND JAMES MANYIKA | MARCH 16, 2012

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.

Tim Boyle/Getty Images

 

Byron Auguste is a director of McKinsey & Company based in Washington, D.C.

Susan Lund is research director of the McKinsey Global Institute, based in Washington, D.C.

James Manyika is a director of the McKinsey Global Institute based in San Francisco.

TARDALOVA

9:42 AM ET

March 19, 2012

Spam a little

Gee whiz, almost every comment on this post is a link to some company trying to sell something.

 

XMASTER4000

11:59 AM ET

March 19, 2012

Something tells me ,

Foreign Policy should do more against spam on its website, damn

 

DR. KUCHBHI

5:29 PM ET

March 19, 2012

US may be short 1.5 mill workers with college or grad degrees

Which is why I keep trying to shout from the tree tops that we need to do something to make college education cheaper.

The "charge what the market will bear" attitude of universities will destroy our economy and the employability of our kids faster than anything else will.

What's described here doesn't have to be the only way it ends up.

 

MCGANNONMA

10:48 AM ET

March 20, 2012

It's not that we're short grads, we need them in critical fields

I would should there are plenty of college graduates, the problem is their majors do not fit the skills that are required to fill that gap in jobs.

We need more engineers, scientists, programmers, accountants, nurses, etc.

What we don't need are more art, history, communications, criminal justice, journalism majors, etc. Those majors are needed to some degree but certainly not on wide scale

 

JAN Z. VOLENS

8:09 PM ET

March 19, 2012

You are clever little things! Figured it all out by yourselves !

Apres moi le deluge ! Some want to be young again and start anew - but who would want to be young again in the scenario which is now unfolding. (You can't even go for escape to Herminias on the corner of Avenida Maximo Gomez and Felix Evaristo Mejia - it's a parking garage since the end of the Great Party in the Caribbean - end decade 1980's...)

 

BRASS MONKEY

8:00 AM ET

March 20, 2012

PR gobbledygook

"labor market institutions" and "creative destruction" are nonsense phrases. Stop using Rovespeak and start making sense.

 

BROWNSHIRTSFORFAGS

8:45 AM ET

March 20, 2012

5 reasons? thats easy...

obama, hillary, nancy, joe and the senate.

 

FREETHINKER12

1:13 PM ET

March 20, 2012

.....

your retarded. The trend is decades old

 

NILS MULDOON

1:20 PM ET

March 20, 2012

the jobs are in spam generation

Looks like there are plenty of jobs to be had in the highly-paid field of spam comment generation. A real growth industry apparently. Though you may have to be a "co-worker's aunt" to earn the real money.

Come on FP, hire some kids to manage your comment section.

 

JACKMACK65

7:23 PM ET

March 20, 2012

False Premise - at least in US Markets

I reject the premise. Among the principal reasons so many jobs go unfilled here is simple risk-aversion on the part of HR and hiring managers. With applicant tracking systems that mechanically screen out the vast number of potentially qualified candidates (Oh, no, this person sold prunes to grocery chains west of the Mississippi for 12 years. I need someone who sold walnuts west of the Ohio for 13.8 years) and hiring managers insistent that there are at least 50,000 people with precise, granular "skills matches" for every imaginable role, there is little chance that the right people can be found.

What's needed is an entirely new kind of thinking. The kind of common sense one used to find at the neighborhood hardware store, perhaps, where the owner would hire a kid because he had a great attitude and the right relevant skills, like being helpful to customers, figuring out problems, and understanding the math inside the cash register.

Oh, right. Today that neighborhood hardware store is a Home Depot, where you can have a crap attitude entirely, not know a quarter from a loonie, but if you've had 18 years of POS experience with 12 years on a Hyster 2-ton forklift (no CATs, please), managed no fewer than 123 people and have 11.1 years at the paint mixer, well, there's a job for you.

The point is this: even when the skills are vastly more complex than the cash register and customer focus needed at Bob's Fix-It Center in 1972, there are still vastly more trainable and transferable skills than anyone seems to understand or care to look for. Mostly the fault lies with the sheer terror painted across the faces of burned out morons in HR departments who now have one more slick piece of technology to help them say "no thanks" to great people.

 

JACKMACK65

7:24 PM ET

March 20, 2012

Edit*

Doggone it, I meant to say SOUTH of the Ohio. Shoot.

 

ZACKARY GOLDFEDER

8:57 PM ET

April 15, 2012

The future of work in advanced economies

I think that, The future of work in advanced economies, there is examination of how future employment patterns will alter and, significantly, what the influences will be. In the introduction to this report the authors recognise that even though growing unemployment is a regular feature of advanced economies, there is a belief that companies cannot obtain workers with the requisite skills. The report acknowledges that even though the global recession caused by the financial crisis has been a primary cause for increased unemployment, its end will not automatically result in the return of jobs lost. Instead, it is argued, there are a number of influences that will cause the labour market to alter. Accordingly five such influences are examined: