Skills mismatch refers to gaps between the skills possessed by graduates and those required by businesses. This mismatch can take various forms, such as a lack of specific technical/hard skills, soft skills, or experience needed for a particular job, often leading to high unemployment rates despite available job openings, as employers need help finding candidates with the proper skill set.
For instance, an educated youth with software engineering skills will not be a good fit for a sales officer role. If this individual has specific skills that can suffice in the sales officer position, they still won’t be able to deliver the best results or perform better than someone with the required soft and hard skills for the sales role.
Types
Skills mismatch can be categorized into 5 different types-
1. Over-qualification
This happens when a worker has skills higher than their job role requires.
2. Under-qualification
It occurs when a worker has skills that are lower than their job role requires.
3. Over-qualification and under-qualification:
This exists when the skills an individual possesses are not helpful in their field of occupation
4. Geographic mismatch
It happens when an individual has skills that can’t be put to use in their geographical location.
5. Skills obsolescence
It occurs when workers have outdated skills due to technological advancement and the growing digital economy.
Consequences
Skills mismatch poses a threat to 3 different levels: individuals, organizations and countries/continents.
Individuals
For individuals, skills mismatch can lead to reduced motivation and life dissatisfaction. A mismatch can hinder career progression and development, as individuals may not gain the relevant experience or skills needed to advance in their desired field. A situation where a worker doesn’t use their skills in their field can lead to a loss of skills, which happens when one doesn’t use their skills regularly because practice makes perfection suitable.
Organizations
Businesses with workers who have skills mismatches will suffer lower productivity rates, impacting business performance. A lack of adequately skilled workers can stifle innovation and the ability to implement new technologies or processes, hindering competitive advantage for the organization.
Countries
Skills mismatch slows economic growth for the affected countries. When businesses’ performance is negatively impacted, it reduces the global economy’s productivity rate. It also contributes to higher unemployment rates, as jobs remain unfilled due to a lack of suitable candidates, while job seekers remain unemployed.
In summary, skills mismatch has a negative impact on individuals, organizations and countries. This is why it is essential to do Skill Gapping to understand what you have and what you need for employment. This is one of the employment strategies mentioned in our 3 free videos on how to be globally employable. Check the link below