Article Summary Skill shortage is a real lack of adequately qualified individuals available in the accessible labor market with the type of skill sought and leading to a difficulty in recruitment. A recent article by Ben Casselman in the Wall Street Journal highlighted the challenges recruiters and employers (particularly manufacturers) face: moderate to severe shortages of skilled labor to fill high-paying positions that require specialized skills. The shortages (due to the weak labor market) are being felt in what have been the hard jobs of workers in manufacturing and other sectors that somehow do not require a college degree. The demand for skilled workers has a significant negative impact on manufacturing businesses and the skills gap can therefore lead to a ripple effect. The skills gap is used to describe the qualitative imbalance between the supply or availability of human resources and the needs of the labor market. . The skills gap exists where employers believe the existing workforce has an inadequate type or level of skills to achieve their business objectives; or where new entrants to the labor market are apparently trained and qualified for occupations, but still lack a number of specific required skills. The shortage also affects lower-skilled workers who lose related jobs to support increased production. Due to the skills shortage, employers are lowering their expectations when hiring staff and reducing capacity and quality levels. The skilled worker gap is developing overall due to the significant decline of the manufacturing sector (aspects of globalization and offshoring) which appears less stable and attractive now that large numbers of workers are approaching retirement… mid-paper. .....rker employee). Furthermore, firms may decide to increase production by making greater use of capital inputs such as extra units of machinery. A growing economy creates jobs for people entering the job market for the first time; and offers job opportunities to unemployed and job-seeking people. “Article source: “Help Wanted: In Unexpected Twist, Some Skilled Jobs Go Begging,” by Ben Casselman, The Wall Street Journal, Column A1, November 26, 2011. http://online.wsj.com/article/SB10001424052970203707504577010080035955166. htmlFrederic S. Mishkin. Macroeconomic Policy and Practice. Pearson Education, Inc., Addison-Wesley 2012. Ronald G. Ehrenberg and Robert S. Smith. Modern Labor Economics Theory and Public Policy. , Prentice Hall 2012.http://en.wikipedia.org/wiki/Structural_unemployment