CHAPTER FIFTEEN - The Supply of and Demand for Productive Resources

Abstract

This chapter describes the supply of and demand for productive resources. A shrinking labor force of young workers and the shortage of the skilled workers could blunt American industry's drive to improve its competitive edge in world markets. Some labor analysts say present shortages of skilled technical workers might worsen and might spread to other occupations. But industry might rise to the challenge with added aid for vocational education, increased retraining of older workers and faster introduction of robots that eliminate some low-skill jobs. How much companies step up their on-the-job training or efforts to improve vocational education would depend on assessments of their coming employment needs. Businesses already pinched by skilled-worker shortages are starting to prepare for the larger crunch ahead. Companies and unions are reviving moribund apprenticeship programs or starting new ones, often combining workplace training with nighttime course work at community colleges. The machinists' union, in bargaining with employers, is pressing for more apprenticeships. Union officials also are talking to high-school students nationwide to promote careers in skilled trades.