POLITICO Pro Labor and Employment hosted the first of a series of events related to issues affecting the American job market and economy this week titled “The Skills Gap: Fact or Fiction,” presenting an in-depth discussion of the skills gap among leading economists and policy thought leaders. Panelists included Rosario Marin, former U.S. Treasurer and Co-chair of the American Competitiveness Alliance; Betsey Stevenson, a member of the White House Council on Economic Advisers; Jared Bernstein, Senior Fellow at the Center on Budget and Policy Priorities; and Chauncy Lennon, Head of Workforce Initiatives, Global Philanthropy, JPMorgan Chase.
The panelists discussed the skills gap and its implications for the nation’s labor and employment policies. While the economic recession posed an enormous challenge for American labor markets, the consensus among attendees was that economic indicators don’t point to the skills gap as a contributing factor. However, Stevenson noted, employers’ needs for a skilled workforce have put increased pressure on policymakers to increase students’ educational attainment. She later referenced the proliferation of high school education for all students as one of the factors that drove America’s economic power in the past, and pointed to the need for all students to gain additional skills training in what she called the “college movement.”
Another topic discussed was whether the skills gap is a demonstrable issue necessitating congressional action, particularly in light of research that suggests Americans are already obtaining higher education in high numbers yet not experiencing rising wages.
“I think it’s important when we’re talking about the skills gap, to move away from the idea of the skills gap as a broad phenomenon that describes the economy at large. We need to look into particular sectors, we need to look into... the way that technology and (sic) that skills can get behind technology, how that can get caught up in lots of labor market friction, especially for jobs that you often call middle-skill jobs,” Lennon said. “This is not a problem that is undermining the economy at large, this is not a problem which is a huge contributor to unemployment, but it is a reality and in particular it’s a reality for certain kinds of workers who do not have the kind of skills that are really in-demand and that get them traction in the labor market.”
ACTE advocates for effective policies that will equip students with skills today for the careers of tomorrow, and that will help connect qualified workers to opportunities in growing sectors. To view the archived webcast of the event, click here.