Video Briefing

Nomad Capitalist: Why You Shouldn’t Hire Americans

Jun 14, 2019Video Briefing6:54Watch on YouTube

The Educational Testing Service (ETS) at Princeton has released data indicating that U.S. Millennials are falling behind on the core skills most employers demand. The study measures literacy, the ability to follow simple instructions, practical mathematics, and problem‑solving in technology‑rich environments. Across these metrics, U.S. workers in the 25‑ to 35‑year‑old cohort score lower than both their older domestic peers and their international counterparts.

Research findings

  • Skill gaps: Millennials in the United States lag in basic literacy, procedural instruction, applied math, and tech‑oriented problem solving.
  • Comparative performance: The same cohort scores below peers in Singapore, Belgium, South Korea, Sweden, Japan, Finland, and several other nations.
  • Domestic contrast: Even the best‑educated U.S. Millennials do not match the performance levels of younger workers abroad.
  • Historical context: U.S. rankings in international math and science assessments have hovered around 25th‑40th place for decades, a trend highlighted in past Wall Street Journal reports.

Implications for employers

  • Talent sourcing: Companies seeking the highest productivity may need to broaden recruitment beyond domestic candidates to include talent from countries with stronger skill outcomes.
  • Workforce efficiency: Hiring individuals who cannot reliably follow instructions or solve routine technical problems can increase error rates, demand after‑hours troubleshooting, and reduce overall team performance.
  • Cost‑benefit analysis: While hiring domestically is often the default, the data suggest that the marginal benefit of hiring higher‑skill workers from abroad can outweigh perceived patriotic or cultural preferences.

Considerations when hiring internationally

  • Skill verification: Use standardized assessments that mirror the ETS metrics to confirm candidates’ proficiency in literacy, practical math, and tech problem‑solving.
  • Cultural fit: Although many U.S. and other Anglo‑culture workers are praised for a “can‑do” attitude, the research shows that skill deficits can outweigh cultural advantages.
  • Legal and tax compliance: Ensure adherence to immigration, labor, and tax regulations in both the home country and the employee’s jurisdiction.
  • Remote work infrastructure: Leverage technology platforms that support distributed teams, allowing seamless collaboration across time zones.

Strategic outlook

The data reinforce a broader shift toward a global talent market where businesses align hiring practices with skill availability rather than national loyalty. As educational systems in several Asian and European countries continue to improve outcomes, firms that adapt their recruitment strategies are likely to maintain a competitive edge.