High skilled or educated workers may face more difficulties in getting employed compared to low skilled or educated workers.
On the other hand, there is a need to scrutinise the new role of low-skilled workers in the current job and industry requirements. In order to get a succinct understanding of the market competitiveness for skilled workers as compared to their low-skilled counterparts, this paper begins by looking at the theoretical perspective of the issue. This is then followed by a critical analysis of the many factors that influence market competitiveness for both skilled and low-skilled workers. Lastly, these factors are analyzed by using the case study of the labour market in the United States where skilled workers are becoming obsolescent to the advantage of the low-skilled and low-educated workers.
One of the theory that explain the circumstance of the labour market where less skilled worker get hired than the skilled work force is the invisible hand theory. Adam Smith coined the term invisible hand denoting that the market should be free of interference from the government (Holcombe, 1999). However, the theory of invisible hand explains that market ought to be guided by the forces of demand and supply. Through this scarce resources are bound to be shared efficiently. This is also the circumstance in the labour sector. The forces of demand and supply supersede the skills more so where the market does not need specialised services (Holcombe, 1999). Therefore, the invisible hand theory explains the competiveness of non-skill workforce to that of skilled labourer (Holcombe, 1999).
The high investment in higher education and skills necessary for a particular type of job is no longer fool proof of a better job. This is because the current market for skills is largely driven by laws of supply and demand. For many years, there has been a contemporary belief that high-skilled workers are often granted high priority in the job market.