Can retraining give the unemployed a second chance?
In surveys by Gallup and the McKinsey Global Institute, corporate CEOs and small business owners report difficulties finding workers with the right skills. Silicon Valley companies fight over software engineers; Union Health Service and the Harvard hospital system complain it’s hard to find nurses and technicians; manufacturers like Caterpillar and Westinghouse can’t hire enough welders and machinists to keep their state-of-the-art lathes running. Estimates of the size of the mismatch vary widely, but a May International Monetary Fund paper put it at a quarter of the 9.1 percent unemployment rate. Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, has suggested it accounts for a full third of the unemployment rate.
