Last week’s disappointing unemployment report has refocused attention on the question of why, despite modest signs of economic recovery in recent months, American companies aren’t hiring. Indeed, some of the most puzzling stories to come out of the Great Recession are the many claims by employers that they cannot find qualified applicants to fill their jobs, despite the millions of unemployed who are seeking work. Beyond the anecdotes themselves is survey evidence, most recently from Manpower, which finds roughly half of employers reporting trouble filling their vacancies. The first thing that makes me wonder about the supposed “skill gap” is that, when pressed for more evidence, roughly 10% of employers admit that the problem is really that the candidates they want won’t accept the positions at the wage level being offered. That’s not a skill shortage, it’s simply being unwilling to pay the going price. (MORE: Why Aren’t There More Jobs?) But the heart of the real story about employer difficulties in hiring can be seen in the Manpower data showing that only 15% of employers who say they see a skill shortage say that the issue is a lack of candidate knowledge, which is what we’d normally think of as skill. Instead, by far the most important shortfall they see in candidates is a lack of experience doing similar jobs. Employers are not looking to hire entry-level applicants right out of school. They want experienced candidates who can contribute immediately with no training or start-up time. That’s certainly understandable, but the only people who can do that are those who have done virtually the same job before, and that often requires a skill set that, in a rapidly changing world, may die out soon after it is perfected. One of my favorite examples of the absurdity of this requirement was a job advertisement for a cotton candy machine operator – not a high-skill job – which required that applicants “demonstrate prior success in operating cotton candy machines.”  The most perverse manifestation of this approach is the many employers who now refuse to … Continue reading The Skills Gap Myth: Why Companies Can’t Find Good People