A Record Six Million U.S. Job Vacancies: Reasons and Remedies

On the surface, low unemployment and a large number of vacancies suggest that the labor market is tightening. However, wage growth has been slow and many potential workers remain on the sidelines. Something is not yet right with the U.S. labor market. Business investment and productivity must rise faster for wages to rise faster, and more people must join the workforce to raise economic growth. The U.S. population is still growing. Since just prior to the last recession, the population has increased by 22 million people of working age, yet the labor force has increased by only 6 million people. The baby boom generation is moving into retirement, but people in their prime working years also are participating less in the labor force than before the recession. In addition to the work Congress and the administration are doing to reform taxes, improve regulation, and alleviate unnecessary government mandates, we must also focus our attention on improving the institutions that prepare our workforce for new challenges. We must explore the value to the economy and individuals of sending ever more people to college, how well high schools position graduates for the workplace, how employer requirements inform the educational system, and what employers are contributing to the skill development of current and prospective employees. In the United States, we must find better ways to equip young people and workers of all ages with marketable skills and the ability to adapt to the changing market demands as they progress through their careers.