Why is it so hard for people to find jobs these days? Three broad reasons come to mind:
1. Inappropriate skill sets
Youth unemployment is particularly high and this may partially be the result of a mismatch between the skills young adults possess and the skills employers require of their workers. Younger individuals already
have less experience and training and even people with college or university degrees may find that they do not possess the appropriate skills for the jobs employers are looking to fill.
2. Government regulations
Government regulations and taxes may also be part of the problem. Things like minimum wage laws, overtime pay, payroll taxes, health care regulations and unemployment all make it more costly to employ labour. When it is more costly for companies to hire workers, employers hire fewer workers. Some of these costs may not be immediately obvious. Also companies are particularly reluctant to hire young workers who lack experience and do not have an employment record to prove that they are reliable and a valuable asset to the company.
There are many reasons for employers to feel uncertain about the future. We are difficult time economically due to Covid-19 and this will result in a slow economic recovery after a major financial crisis. All of this creates uncertainty, which makes employers more cautious in hiring workers.
These three reasons, mismatch of skills, regulation, and uncertainty, are three potential reasons why many people are having a hard time finding work right now.