In a speech at the National Association for Business Economic Annual Conference in Washington, D. C. Chairman Ben Bernanke remains unconvinced on growth and believes that recent reductions in the unemployment rate are not an assurance that that the economy is healthy enough, nor on a solidly increasing slope.
Key concerns for which Bernanke remains unconvinced on growth are:
The improving job numbers are out of sync with the pace of economic expansion.
Is the unemployment rate a result of insufficient demand and a mismatch between job seeker skills and employer requirements?
Further concerns include:
The unemployment rate is still too high to be long term sustainable in the judgement of many economists.
Long term unemployment may reduce the productive capacity of the economy.
Small Business Loans Depot’s business desk assesses that the primary reason for the lack of tie in between the improving job numbers and lagging economic growth is not a mismatch, or gap between job seeker’s skills and employer requirements. The economic crisis of 2008 began in a very short time frame, roughly 30 to 60 days.
An increase in the job skills gap of the magnitude that would cause millions to lose their jobs due to not having the skills that employers with open job vacancies happens over the course of years, even decades, not in 1-3 months.
Notwithstanding this issue, Bernanke raises important points in his address.