Skill Gap Theory

Skill Gap Theory suggests that differences between the skills workers currently have and the skills that employers need create gaps. When workers lack certain abilities or knowledge required for available jobs, this mismatch can lead to unemployment or underemployment, while employers struggle to find qualified candidates. Addressing these gaps through training, education, or reskilling helps align worker capabilities with labor market demands, improving employment opportunities and organizational performance. Essentially, it highlights the importance of continuous skill development to meet evolving job requirements and economic growth.