Define the concept of skills mismatch in the labour market ?

Skills mismatch in the labour market refers to a situation where there is a disconnect between the skills that employers are looking for and the skills that job seekers possess. This can occur when there is an oversupply or undersupply of certain skills in the labour market, leading to difficulties in finding suitable employment or filling job vacancies.

Skills mismatch can occur for various reasons, such as rapid technological advancements, changes in industry demands, inadequate training and education programs, or demographic shifts. When there is a skills mismatch, it can result in higher unemployment rates, lower productivity, and reduced economic growth.

Addressing skills mismatch in the labour market requires collaboration between employers, educational institutions, and policymakers to ensure that the workforce is equipped with the necessary skills to meet the demands of the job market. This may involve investing in training and education programs, promoting lifelong learning, and fostering partnerships between industry and academia.