We don't have unemployment, we have an education deficit

Although the global economy is in better shape than it was during the worst days of the 2008-09 financial crisis, don't expect to see a dramatic turnaround in 2013, say Wharton professors Mauro Guillen and Kent Smetters. They maintain tha the U.S.A. in particular does not have an unemployment problem, rather it has an education problem where the unemployment rate is still in the double digits for people without a college degree.

Professor Smetters claims that there is not a lot of hope for many jobless unless people obtain new skills. He therefore asks for a fundamental education reforms with better public schools and better training for people in their 30s since a college degree is still the big differentiator in the labour market today.

(03|2013) Source: Knowledge Wharton