If you do not subscribe to econprofaj, then you might miss out on this nugget from the Wall Street Journal’s Real Time Economics. When Federal Reserve Governor Sarah Bloom Raskin bemoaned, “I didn’t think life guard was a job that required an advanced degree.”, she is speaking to a level of frustration that describes many throughout the U.S. It also highlights the disconnect between education and the skills required by employers. Even if this does not surprise many, especially those unsuccessfully seeking work, this phenomenon carries significant implications for the future.
While we should be encouraged about the gradual decline in the unemployment rate, we must also be aware of the hidden cost of long-term unemployment. Individuals that remain jobless for a long period of time will find it difficult to ever become marketable. That is because firms are reluctant to hire workers with gaps in their resume and the idleness from work negatively affects their skills.
If you are out of work, it is imperative that you find ways to update your skills. That might involve going back to school; getting additional certifications in a needed area; or volunteering at a non-profit organization.