Why is unemployment still so high? It may be because of something that happened well before the Great Recession.
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from a p M american public media and w and Y see this is Breakin onyx radio on marketplace. Here's a host of marketplace: tyrants, Doc, so now, if a little but a free economic radio. That moment in the broadcast. Every couple of weeks where we talk to Stephen under the co author of the books and the blog of the same name, it is the hidden side of everything dumber. How I met Hake, I'm great and I bet you just can't wait to see the new unemployment numbers on Friday. That's gonna, catnip prepares makes my day welcome on others that stuff. Let me see. This. Whatever the number say on Friday, the general picture is pretty clear, which is, unemployment remains relatively high. Everyone has seen a pet fury, but I'm here to tell you today about a trail. Conscious of a new research paper out with a pretty interesting angle, to explain the unemployment through economists, three times as much funding very hot outlet, let's start with
the thing that we know to be true: ok, that on average, the more education you get, the better you do in the labour market is no question about it. Right day did say it's it's our only baby. It return on education much like return on investment, exactly right and that's thought to be especially true for what are called knowledge workers. People who primarily use their brains for their job managers and tech jobs. Things like that, but one author of this new papers, name is Paul Boundary look at thirty years worth of hiring date, and he found the demand for knowledge workers actually stopped growing quite awhile ago. Then you start noticing it I told in two thousand, even though more and more people are getting educated, it should have kept on going so dumber. You know, and was like thirteen years ago right had before the recession. Oh dear, what happened? Well? What happened is the Tec boom in the nineteen nineties, the Tec boom too much higher demand for knowledge, some more and more people start getting the appropriate college degrees, but into
I also remember where the Tec Bus, which meant that demand for knowledge, jobs, fell, fell fast, boundary and his colleagues actually call it. The great reversal we don't really drugs. One more time to those was thirteen years ago may make this makes sense in the unemployment situation. Today is a thing all those highly educated workers who who educated themselves up from what was supposed to be the everlasting tech boom. They didn't get jobs, they fought I was workers, don't go away. Ok man! There are new graduates in the pipeline every year, but there still aren't enough high and jobs to suit them. So what happens? Well, here's Paul boundary again. These educated people are getting their jobs in that sector. They must be pushing down and that's when we started noticing all this escaping. I wouldn't want to con exaggerated, so, unlike everyone's kind of getting a barrister job, but that's exactly the feeling is kind like this pushing down something. That's a pretty word that he uses cascading to discuss
A pretty ugly effect to many highly educated workers are unable to find the jobs there expecting and as a result, they get shut down the labour ladder a couple, a rungs is a felony Clayton Thomas he's a software consulted in SALT Lake City. When he graduate from Duke a few years back, he studied life sciences, He was expecting to have no trouble finding a good research job, and I want a job here is where I would discuss openings with companies, and I found that I would competing what people that had masters agree even Phds, basically entry level division which was pretty scary. We I'd so dumb, know what's net saying I heard in the service alot stuff, shall we say rolls down hill right. I mean what happens to the people on the bottom rung of the latter's, then exactly right as the top pushes them the middle pushes the bottom, the crowding at the top, pushes everybody down, but let me say at the top-
from inasmuch as we hear about needing to educate, more stem workers. Stemmed stands for science technology engineering in math. There's another new research paper out, which argues that there is in fact no shortage of stem work. Is that only half of? U S stem graduates. That would stem job already. This is the most Do you have ever made me my there? There must be some silver lining. You gotta hit me with that let me try, if you go back several decades, you'll find that a huge share of the college educated women in the? U S labour force worked as school teachers right so, even though the jobs and pay that well a lot of the best and brightest women in the country were teachers because they didn't have as many opportunities as they do now, when the feminist revolution opened up those opportune, It was great news for women who became doctors, lawyers and radio show Huzzaed and on extra, but bad news for the classrooms. Well see see what you think of this idea.
This case is the hidden side. Is that what this is so hidden so in this cascading were that we're seeing now with the top pushing down What it means is that it might be good news for field like education, because more and more highly educated people, women and men could end up work as say teachers or elsewhere in education. So this year, for instance, teach for America which recruits from Elite college campuses had the most applications in its twenty year history, it accepted only seventeen percent. Of the outcomes, which means that on some campuses, it's almost as hard to get into teach for America. As was to get into while also selectivity is any measure that means at the core of potential teachers at least is drawn from a very, very talented pool. I think we could say silver lining found here, an inert aware there. He asked even donor freak. Her steady job is the website. He's back in a couple of weeks was ailments thanks round me
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Transcript generated on 2021-03-15.