Publications / Policy Brief

America’s Skills Gap: Why it’s Real, And Why it Matters

By / 3.20.2019

A common view among the left is that the “skills gap” – a shortage of workers with the skills employers want – is a mirage.

A new PPI report decisively debunks this myth. As author Ryan Craig explains, the skills gap is real: employers are having trouble finding enough workers with digital skills and “soft skills.”

Craig attributes these shortages to two factors: “Education friction” – the failure of higher education institutions to turn out job-ready graduates — and “hiring friction” – digital screening practices that cause employers to overlook qualified workers.

Craig offers a fresh take on why skills gaps persist, the consequences for economic growth and what he calls “economic alienation” among workers feeling left behind in today’s economy.

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