Then, for a given number of job openings, the number of the unemployed who are qualified for those jobs is smaller and the unemployment rate is higher than it would have been before the mismatch problem worsened. Graphically, an increase in a skills mismatch would be reflected in a shift of the Beveridge curve up and to the right.
Of course, elevated unemployment, below-target inflation, lingering economic fragility, and the harmful effects of long-term unemployment on our society and economic potential also pose significant costs and risks, and the Committee has, thus far, judged that the balance favors the use of LSAPs.