Subject: Unemployment

Posted by Richard Turnock on 3/7/2009

Message:

Quotes[1]:
“This time, the government needs to place a greater emphasis on retraining workers for other careers, these economists say.”
“The stimulus spending bill signed last month includes $4.5 billion for job training.”
“You’ve got to use this moment to retrain for jobs” said Andrew Stettner, deputy director of the National Employment Law Project in New York.

Where are the jobs and other careers for these trained and retrained people?

From what I’ve read about the Urban Dynamics model: government intervening with job training causes business to stop on-the-job training of unskilled labor and begin hiring only skilled labor. As a result, unemployment for unskilled labor increases. As the government intervenes and increases the numbers of skilled workers, unemployment of skilled workers increases.

[1] Job Losses Hint at Vast Remaking of Economy
http://www.nytimes.com/2009/03/07/business/economy/07jobs.html?_r=1&em
By PETER S. GOODMAN and JACK HEALY
Published: March 6, 2009


Richard Turnock

Follow Ups:

Unemployment - Jack Harich 3/11/2009 
Unemployment - Bill Rathborne 3/11/2009