Stories

New Skills at Work: First Year in Review

October 30, 2023

Promoting economic vitality is one of our top priorities. However, every day we hear from our business clients – firms of all sizes, in every sector of the economy across the globe – about the challenges they face finding workers with the right skills for a range of jobs.

A disconnect continues between what's being taught through career and technical education, and the requirements of middle-skill jobs, which include some training but not necessarily a four-year degree. Across the globe, employers, educators, policymakers and training organizations have recognized the critical importance of tackling this skills gap.

Since launching our five-year, $250 million New Skills At Work initiative in December 2013, we have worked with Houston, Louisiana, Miami, Columbus, New York City, the U.K., and France to identify opportunities for their particular workforces.

Learn more about the key findings, recommendations and data from the first year of the New Skills at Work initiative

 

High Levels of Unemployment

Despite economic recovery, unemployment rates remain elevated around the world.
5.8% U.S unemployment rate, with a rate of 15.1% for people aged 16 to 241
11.5% Unemployment rate in the Euro area, with nearly twice as high for people under the age of 252

Fueled by the Skills Gap

Having some job vacancies is natural in healthy, well-functioning economies, but the inability of employers to find workers with the right skills is a growing contributor to job vacancies and unemployment.
Nearly 2MM
Number of jobs sitting vacant in Europe3
Nearly 5MM
Number of jobs sitting vacant in the United States1
1/3 of the U.S. unemployment rate is due to the gap between skills and open jobs4
Estimated 85MM
The global shortage of high- and middle-skilled workers by 20205

JPMorgan Chase's Response: $250 Million

To help address this challenge, our initiative is aimed at closing the skills gap through:
Innovative, data-driven analysis of skills demand and supply gaps in local markets.
Targeted investments to strengthen and scale the most effective workforce training programs that meet the employment needs of each community.
Cross-sector convenings to encourage collaboration, share findings and formulate strategies..

© 2015 JPMorgan Chase & Co.

1
U.S. Bureau of Labor Statistics, October 2014.
2
European Commission. Eurostat, October 2014. Unemployment Statistics. See http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Unemployment_statistics
3
European Commission. European Vacancy Monitor, Issue No. 12, February 2014. See http://ec.europa.eu/social/BlobServlet?docId=11089&langId=en
4
Estevão, M. and Tsounta, E. (2011). Has the Great Recession Raised U.S. Structural Unemployment? IMF Working Paper (WP/11/105). See www.imf.org/external/pubs/ft/wp/2011/wp11105.pdf
5
Mourshed, M., Farrell, D. and Barton, D. Education to Employment: Designing a System that Works. McKinsey Center for Government. See http://mckinseyonsociety.com/education-toemployment/report/

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