Skill Mismatch

Skill mismatch occurs when there is a disconnect between the skills that workers possess and the skills that employers need. This can happen when job seekers have qualifications that are not aligned with current job opportunities, or when industries evolve and require new skills that the workforce has not acquired. For example, a worker trained in traditional manufacturing may struggle to find a job in a tech-driven economy. Skill mismatches can lead to unemployment or underemployment, affecting both individuals and the broader economy as businesses may struggle to find the talent they need.