Governments are right to focus on creating more good jobs, because work is the source of most people’s livelihood in every society. But in the majority of cases, the solution lies in policy areas that are not amenable to tools wielded by ministers of labor or education.
Just because a tire is flat at the bottom does not mean that the hole is there. The same can be said about labor markets. Concern about the scarcity of good jobs is fueling interest in labor-market interventions such as job centers that match workers with vacancies, training services to improve the skills of the unemployed, temporary wage subsidies, and more. Because getting more workers more quickly to good jobs is such an important policy goal, some countries create so-called delivery units in the president or prime minister’s office to focus on how to do it. But, as with a flat tire, a dearth of good jobs does not mean that the labor market is the problem. Here’s why.
Chosen excerpts by Job Market Monitor. Read the whole story at How Not to Think About Job Creation by Ricardo Hausmann – Project Syndicate