What Role Does Government Play in Job Creation?

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June 6 (Bloomberg) -- Karen Mills, senior fellow at Harvard Business School, and Matthew Ferguson, Chief Executive Officer at CareerBuilder, talk with Erik Schatzker about the U.S. job market, the roles played by government and the business community in creating jobs, and the challenges for small business to find skilled labor to fill positions needed to grow their companies. They speak on Bloomberg Television’s “Market Makers.”

An average of two and 30,000 jobs -- 230,000 jobs, what is the role of government going forward?

We saw a really solid jobs report, but the economy is stuck in second gear.

It is the job of business and government together to get it moving so that we can get to the growth rates that we want.

In some ways, we have gotten to the end of this cyclical recovery, or made good progress on the cyclical side.

You see people going back to work in main street businesses, that was a slow process.

We are in a solid place.

The question is, how we get the structural recovery?

How do we turn our economy so we are created jobs, getting a skilled workforce in the right place to match up with those jobs, and that the kind of gdp growth we want?

There is a role for government and a role for business.

We have a playbook for jobs.

It is a question of investment, both from the government and from private sector.

When we talk about government spending, we have to make sure we are talking about government investment spending.

Particularly in the things that small businesses need like workforce training, like innovation and research and entrepreneurship development.

And access to capital.

Matt, karen talks about the things that small business needs.

The national independent survey businesses says that small businesses having a hard time finding people . job earnings are back to their long-term average, small businesses really weren't hiring so there weren't any openings to be filled.

In your research matt, what do you find?

Do you see this struggle to find qualified people to build the jobs they want higher for?

We see a lot of research that says small businesses and midsize businesses are having a hard time finding skilled labor today.

That demand for skilled labor is increasing in the united states, the supply is relatively flat.

Wages will start going up, you will see a lot more pressure there.

A lot of businesses can hire amid wage or low-wage jobs until they hire the skilled workers.

-- can't hire amid wage workers.

Matt is right.

Small businesses, when i travel around the country, i would say what is your busiest problem -- biggest problem?

They would say i can't find skilled workforce.

What do we do about it?

This is where big business, small business, community college and the government really have a role to play.

We're in the process of thinking about -- how do we get the information asymmetry out of this marketplace?

How do you make sure that someone was getting a certificate actually get the job afterwards?

That's a problem we should be able to solve.

We should.

My question to you is, what that problem solve itself?

If matt is right, we just are to rise, people can see the prospect of earning more if they get certain qualifications, or the companies that need it a skilled labor force will start to subsidize them education -- over time, that is how the market as opposed to work right?

But why not accelerate the process?

If we can come in an efficient way, why not promote technology?

Why not make sure that everyone sitting at the table ash if you go to a local economy, if you -- businesses not talking to community colleges.

Kids are coming out of high school, they don't know which way to turn.

You can educate someone overnight.

We do know some things that work.

What we do to make sure that government plays a role, that big business plays a role in its training program.

Take supply chains, for existence -- for instance.

Businesses use to train people, they would go work in the supply chain.

Now big business goes in, steals the best people out of the supply chain.

What is the small business going to do?

One thing i will add, i think she is right.

We have to have a better partnership between the educational institutions, government, and business.

I think we could accelerate things.

One thing we can do quickly is raise the number of h1bv visas.

There was a study that came out that in areas where foreign workers came in, american workers'wages rose around 20%. in areas where they saw foreign workers drop, which is actually declined -- wages actually declined for american-born workers.

We have a way to do those long-term things you were talking about.

There are some short-term things we could do that would immediately provide a supply of skilled labor that would allow for the creation of higher wage jobs.

We all know immigration reform is not going to be easy amid increasing these visas.

I think i have a different question i want to propose.

How do you see these changes that are taking place, in seattle tom original minimum ways -- wage?

It looks like small business is actually in a pretty good place.

Confidence is back up, they are beginning to invest in their businesses.

We should feel -- i actually thought we might even see a higher number this morning.

I actually thought that the momentum we were seeing in the indicators of sentiments were pretty powerful.

We are on a good track in the economy.

The question is, is it just a cyclical track?

Are we just getting people back

This text has been automatically generated. It may not be 100% accurate.


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