What’s Wrong With Labor Markets?

Mauro F. Guillén

Mauro F. Guillén is Director of the Lauder Institute at the Wharton School.

OCT 26, 2015, Project Syndicate

PHILADELPHIA – Around the world, labor markets are in disarray. Unemployment is high in many countries, especially among the young. At the same time, many companies report having trouble finding qualified workers. Record numbers of people are going into retirement, but many would prefer to work, at least part-time. Information technology has displaced workers even as it has created new jobs.

These conflicting signals and trends are a symptom of a series of fundamental mismatches between what employers need and the talents of those they would like to hire. There have never been so many highly educated people in the world; yet the crises in Europe, the slow recovery in the United States, and the rise of emerging economies are revealing previously hidden flaws in the labor market. Addressing them will require a broad range of policy interventions.