So all those training dollars are wasted.
For decades, “re-training” has been the mantra of free-marketers and government do-gooders alike, noting that as jobs get creatively destroyed in our dynamic economy, workers need a way to acquire the skills they need to compete in the global marketplace. But a new Labor Department study questions that mantra.
Three professors reviewed the incomes and employment status of 160 thousand trainees and 3 million peer-group members from 2003-2005. They found that the benefits of a multi-billion dollar program were small or nonexistent.
A big part of the problem is that these programs train people for industries determined by the State to be “high-demand occupations.” But this designation is decided by the State in a political process that still labels automotive engineer as “high demand.”
It’s no surprise that time and money spent in a political exercise with politically targeted jobs would be wasted. It’s just a shame that so many lives get wasted in the process.
Douglas R. Tengdin, CFA
Chief Investment Officer
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