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U.S. Faces Uphill Battle in Retraining the Jobless
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The U.S. government has spent $18 billion on training and job-search programs, with 47 programs offering training for the year ending Sept. 2009, according to the Government Accountability Office. President Obama proposed spending $8 billion more over 3 years to train 2 million people for new jobs. In addition there are state and local programs which get federal funding. Lawrence Katz, a Harvard labor professor says the money is given out on a haphazard basis and does not have a good track record of matching the training to the job openings. Part of the problem is that the government leaves it to state unemployment offices to evaluate labor markets and help trainees decide on professions to prepare for. A better approach is now being take by getting employers to offer on-the-job training. This approach is being adopted by community colleges and the Labor Department to improve matching of skills training to job openings.
Danger of increasing numbers of permanently unemployed workers in the U.S.
04/30/2009
The serious problem of the large proportion of long term unemployed in the total number of unemployed persons in the U.S., with the figure higher than 40% in 2012. More than any downturn in the postwar period the present situation presents the danger of increasing numers of permanently unemployed workers. Retraining become a big issue as some industries like autos are permanently downsized, and others like healthcare and renewable energy which are growing will require retraining.
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Fast structural shift from banking, autos and retail to health care, energy, government and education in the USA, makes equally rapid government assisted retraining and cost sharing enormously critical.
01/28/2009
Retraining will be critical to shift workers from downsizing to upsizing industries and fields of work. The danger is that a growing mismatch in qualifications and lack of a crisis mode in retraining efforts will leave large numbers of people permanently unemployed. The shift is ocurring with lightining speed. Would government sharing the initail cost of hiring and retrainng workers help as in the German example and the Harz reforms. See link.
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Jamie Dimon’s harried JPMorgan Chase pushes campaign for worker training - The Washington Post
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The U.S. job vacancy rate with 3.5 million openings in Feb. 2012 and the high unemployment rate showing a mismatch of skills
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Structural problems like a mismatch of skills between maufacturing and construction sectors worst hit since 2008 and growing sectors like healthcare is one problem. Geographic factors and difficulty selling homes in states like Michigan is another. The tighter credit from a return of banking sector losses from bad home equity loans that is expected in late 2010 will keep the recovery from taking hold keeping unemployment high. The economic uncertainty following repeated budget battles between political parties also affects business investment.
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Experience of Katherine Jameson teaching at a community college. The need is there, so is the dedication.
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Hassett and Baker on the importance of German style work sharing programs and training with government help to address U.S. unemployment
06/06/2009
"Kurzarbeit" and work sharing helped Germany deal with stubborn unemployment in the last decade and after the 2008 financial crisis. France is already looking at cooperation between industry, unions an government to reduce unemployment by adopting some of the actions taken in Germany.
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Rapid structural shifts in U.S. job openings and a mismatch that will require greater job retraining effort.
04/30/2009
JOLTS and COnference Board job openings figures shows 3 million job openings in February 2009, with mismatch in qualifications of candidates from industries losing jobs (finance, retail, construction) and industries gaining jobs (health care, education, government, accounting). Is the US market becoming less mobile?
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The Obama administration's push for college-for-all and problems with student debt and lack of vocational training
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Why high unemployment and the high percentage of the long term unemployed is determining U.S. Federal Reserve interest rate policy in 2012-2014
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With 40% of the unemployed in the U.S. shown as long term unemployed, mismatch in skills and other structural problems with unemployment, the U.S. Federal Reserve policies of Fed chairman Bernanke are geared to addressing this problem.
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President Obama and Arne Duncan's community college intiative.
01/28/2009
Obama's proposal will invest $12 billion in savings from the federal education lending programs into community colleges. The idea is to expand graduation rates by about 5 million with certificate progras of 6months to ayear that would train people especially the jobless for new jobs in growing fields. Its crucial to meeting the growing mismatch between job requirements of jobs going unfilled and the qualifications of jobless people.
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U.S. Faces Uphill Battle in Retraining the Jobless
Wall Street Journal 07/31/2012
Wall Street Journal 08/08/2012
Rapid structural shift in job openings, mismatch of skills, and the lack of a strong jobs training effort in the U.S. to reduce unemployment
03/15/2011
The lack of adequate funding and focus on jobs training in the U.S. to fill job vacancies and lower unemployment. This is becoming increasingly important with the large number of people unemployed for long periods.
Linked Articles
U.S. Faces Uphill Battle in Retraining the Jobless
Wall Street Journal 07/31/2012
Many Workers Seen Lacking Skills for New Jobs
Wall Street Journal 03/15/2011
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