A mismatch is brewing between the supply of skilled workers in New England and the increasing demand for such workers, according to a new report by the New England Public Policy Center at the Federal Reserve Bank of Boston.

The study by senior economist Alicia Sasser Modestino shows that, over the next 10 years, New England ...]]>

A mismatch is brewing between the supply of skilled workers in New England and the increasing demand for such workers, according to a new report by the New England Public Policy Center at the Federal Reserve Bank of Boston.

The study by senior economist Alicia Sasser Modestino shows that, over the next 10 years, New England will face not only a shortfall in the number of workers it needs to pull the region out of recession, but also a detrimental lack of "middle skill" workers—essentially people with an associate degree or some college less than a bachelor's.

Even in these times of high unemployment, forecasts of labor shortages are becoming more prevalent. New England has long-boasted a highly educated population relative to other parts of the country, but the retirement of baby boomers and net losses in population migration suggest that the demand for skilled workers will increasingly outpace supply. These and other looming demographic shifts threaten to hamper regional recovery efforts.

Modestino argues that the dearth of middle skill workers in New England could also contribute to protracted economic woes. While the wage increases that result from labor shortages might generally incentivize workers to migrate or to seek additional educational training, middle skill workers, more so than other groups, lack the resources necessary to take advantage of increased wage-earning opportunities. Over the next decade, the mixture of workers and skills in New England will grow increasingly disadvantageous. Coupled with worker shortages, this mismatch in the labor market could seriously impede economic growth in the region.

Universities, and especially community colleges, according to Modestino, should focus on degree-completion initiatives, increased financial assistance for students, and greater opportunity for career training and professional collaboration to fill the looming workforce gaps; such areas of focus would produce a “win-win-win” for employers, for the regional economy, and for students themselves.

Recent Posts: Too Many College-Educated Workers or Too Few? (Forum); College Labor Shortages in 2018? Part Deux (Harrington/Sum); The Real Education Crisis: Are 35% of all College Degrees in New England Unnecessary? (Carnevale et al); The Future of the Skilled Labor Force: New England’s Supply of Recent College Graduates, Sasser (pdf)

The Federal Reserve Bank of Boston will host a free forum, titled "Mismatch in the Labor Market? Ensuring an Adequate Supply of Skilled Labor in New England," on Tuesday, Nov. 30, from 8:30 a.m. to noon.

Alicia Sasser Modestino, senior economist at the FRBB's New England Public Policy Center will describe the misalignment between the ...]]>

The Federal Reserve Bank of Boston will host a free forum, titled "Mismatch in the Labor Market? Ensuring an Adequate Supply of Skilled Labor in New England," on Tuesday, Nov. 30, from 8:30 a.m. to noon.

Alicia Sasser Modestino, senior economist at the FRBB's New England Public Policy Center will describe the misalignment between the number of workers employed and the mix of skills needed in the region

Joining Modestino, Henry Holzer, professor of public policy at Georgetown University and former chief economist for the U.S. Department of Labor, will focus on the problems of low-wage workers in this environment.

Registration ends Nov. 19, and space is limited.

Related posts: The Future of the Skilled Labor Force: New England's Supply of Recent College Graduates; More than 2 Million Job Vacancies Forcast for NE by 2018... But Do Our Workers Have What it Takes to Fill Them?; Forum: Boosting Community Colleges

Friend of NEBHE and frequent contributor to NEJHE, Yolanda K. Kodrzycki, was named  director of the New England Public Policy Center at the Federal Reserve Bank of Boston.

Kodrzycki joined the Boston Fed in 1986 as an economist. Previously, she was senior economist and policy advisor in the bank's research department. She is also a former ...]]>

Friend of NEBHE and frequent contributor to NEJHE, Yolanda K. Kodrzycki, was named  director of the New England Public Policy Center at the Federal Reserve Bank of Boston.

Kodrzycki joined the Boston Fed in 1986 as an economist. Previously, she was senior economist and policy advisor in the bank's research department. She is also a former president and forecasting chair of the New England Economic Partnership (NEEP), and co-editor of Massachusetts Benchmarks, and co-organizer of the New England Study Group. Kodrzycki holds a master's and doctorate in economics from the University of Pennsylvania and a bachelor's from Radcliffe College at Harvard University.

Kodrzycki's succeeds Robert Tannenwald, the center’s founding director.