People who work in recruiting or technical fields are highly sensitive to the phenomenon of the skills gap. For many, its existence is a given—but a new study claims that the hype surrounding this phenomenon may be based on a lie.

According toa study recently presented at the American Economic Association conference, the skills gap is largely self-inflicted by employers. During the last economic recession, employers could be picky with job seekers and raised their requirements accordingly; but as the economy began to recover and talent became less abundant, they did not relax those requirements.

It turns out that the skills gap is somewhat that simple; but there is more to the story. So what is the truth about the skills gap?

Is the skills gap real?

Heidi Shierholz, senior economist and policy director at the Economic Policy Institute, told HR Dive: "This discussion is not new. You can always hear employers complaining that they cannot find the skills they need." She said that during difficult economic times, employers would say unemployment is rising because job seekers lack the required skills. Discussions about unemployment eventually revolve around this perception of a skills gap, and such discussions can persist even after the market recovers.

Currently, the unemployment ratehovers around 4%,and Shierholz said: "We are not doing massive training." The cyclical nature of the market may partly explain this sudden change. She predicted: "I guarantee we will have this discussion again."

But all of this could be true and does not diminish the severity of the current problem. Ravin Jesuthasan, managing director and global practice leader at Willis Towers Watson, told HR Dive that when companies have the opportunity to improve their skill base, they do so. But as tools change (especially in the current market), the skill premium also rises reasonably, putting both employers and potential job seekers in a bind.

Jesuthasan said: "The skills gap is absolutely real. It is not invented by organizations. That study in no way diminishes the fact that organizations are indeed struggling to fill positions."

Unfortunately for employers, part of the reason can be attributed to human nature. Steve Berchem, chief operating officer of the American Staffing Association, told HR Dive that employers adopt stricter requirements to manage large volumes of applicants; if an applicant does not perfectly match the requirements, it is easy to deduct points. But the market has changed—and companies have been slow to react.

Berchem said: "Many people think this is an employer's market or that it is hard to find a job. It could be those leftover requirements... When job seekers see that, it only reinforces that perception."

Part of the confusion lies in how to define the "skills gap." Formal research often defines it in terms of years of work experience. But others tend to refer more to a broad range of skills and knowledge. Katie Bardaro, chief economist at PayScale, told HR Dive that workers do not know what employers need them to know. She added that to solve this problem, employers may have to bear the cost of on-the-job training, which in a looser market might be seen as an unnecessary expense.

Employer responsibility

The larger skills gap drama may say more about employer readiness than the actual skills market. Jesuthasan said that the concept of a job or a degree itself does not reflect how work is actually done. He said: "There is too much noise in a degree. Someone may have a 'data science' degree, but it does not tell you what those skills specifically are." He added that the talent lifecycle should be driven by skills and work, not by job titles or alma maters.

This means hiring managers should look for people who can do the jobs that employerscannottrain for—such as critical thinking, good communication, and willingness to learn, Bardaro said.

To that end, more employers are conducting interviews "intentionally," she added. Employers take time to get to know candidates through longer interview processes and tests, rather than bringing them in quickly. In the current market,the hiring cycle remains a concern,but experts previously told HR Dive that combining solid data analysis with personalization often improves overall hiring quality. Despite the current strong economy, Bardaro said: "There is a degree of uncertainty about whether this can last."

On a practical level, employers may need to change certain job requirements to "preferred advantages" to widen the talent pool, Berchem said. What does a person really need to start a job, especially if the employer is prepared to train a candidate with potential?

Berchem said: "There are solutions to address these skills shortages. We all need to be more realistic about what is actually happening in the market."

A natural cycle?

Part of the skills gap concern stems from the natural cycle of technological development and economic growth. Bardaro said: "I think this is largely a natural cyclical process. When can you afford to be picky? When can't you?"

Shierholz added that the current skill mix is "strange." Skills and jobs will never perfectly match; there will always be employers who cannot find the workers they need. But there is a difference between a skills gap and a broadly tight labor market, and currently,stagnant wage growthundermines the argument that the gap is entirely skills-based, she said.

Shierholz said: "Whenever you hear someone say they cannot find workers with the required skills, be sure to add: 'at the wage I am willing to pay.'"

However, something is indeed different this time. The rise of automation has forced society to rethink skills retraining. Of course, the fear that automation will forever shatter the dream of a workers' republic is not new; Jesuthasan said of automation: "We have seen this narrative since the era of the loom." But this time, the speed of change—both technological and cultural—has stunned employers and governments.

He said: "It never affects jobs. It affects tasks. That is the key. The composition of work has changed, so skills have also changed dramatically."

Improved apprenticeshipsandcertificates for adult learnersare examples of innovations born out of demand in the current market. Jesuthasan said that augmented reality and virtual reality tools can shorten learning cycles, bringing employers closer to the speed of skill change.

But Berchem said: "There is a lack of basic skills in the population." High school students graduate without basic reading or math abilities. He added: "We are not talking about writers and engineers. We are talking about basic carpentry; you need to be able to calculate inches."

These issues point to a broader skills upgrading crisis that may require thecombined expertise of employers, governments, and educators—a new reality that many employers are still struggling to come to terms with.

Berchem said: "There is no doubt that all three entities have responsibility. We need to stop arguing about how much and just get to work on solving it."