Final answer:
People with fewer marketable skills typically earn less than those with more skills due to supply and demand dynamics in the labor market. Industry-specific skills affected by unemployment can lead to lower wages or the need for retraining. Skills programs can impact wages and inequality by shifting labor supply.
Step-by-step explanation:
It is true that people with few marketable skills are likely to earn much less than people with more skills. Wages are influenced by the supply and demand of specific skills in the workforce. When certain talents, skills, education, or training are in high demand but short supply, they command higher wages. Conversely, jobs that require less skill can often be filled by a larger pool of people, and thus tend to offer lower wages. Furthermore, competition in the labor market affects wages, and during times of high unemployment, workers might be willing to accept less pay.
Factory workers, for example, often have skills specific to their industry. When unemployment affects an industry, these workers struggle to find comparable work, which can force them into lower-paying jobs or require them to seek retraining. Skills programs can influence the labor markets as well, driving up wages for low-skill workers by reducing their supply, or driving down wages for high-skill workers by increasing their supply, potentially decreasing wage inequality.