Unfilled jobs costs the U.S. economy $160 billion a year

Good analysis of US business employment issues with my favorite innovative solution at the end of the post, which I’ve been doing with my clients in the hospitality business for many years now.

Fortune

Something weird has happened to the U.S. labor market over the past decade or so. As most hiring managers know all too well, it has split in two.

“There’s one job market for people whose skills are in demand, and who jump around from one employer to another,” observes Paul D’Arcy, a senior vice president at job search portal Indeed.com. “Then there’s the second job market, where long-term unemployment is at an all-time high, and labor participation rates are at all-time lows.”

What does the much-lamented skills gap actually cost U.S. companies? With researchers from London-based Centre for Economic Research, D’Arcy set out to calculate that. Their conclusion: More than $13 billion a month, or roughly $160 billion a year.

Employers’ struggle to find new hires with the right skills, the study notes, is a drag on GDP in two ways. First, the company misses out on potential output, so…

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