Skill Mismatch Theory

Skill Mismatch Theory suggests that there is a gap between the skills workers have and the skills that employers need. This can happen when people have education or training that doesn't align with job requirements, or when industries evolve but the workforce doesn't adapt fast enough. As a result, qualified candidates may struggle to find suitable jobs, while employers face shortages for the skills they require. This mismatch can lead to unemployment or underemployment, affecting both individuals and the economy. Addressing this issue often involves improving education, training programs, and aligning them more closely with market demands.