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Skills mismatch

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Skills mismatch is an encompassing term which refers to various types of imbalances between skills offered and skills needed in the world of work. ...

Vertical mismatch: The level of education or qualification is less or more than required.
Horizontal mismatch: The type/field of education or skills is inappropriate for the job.

Source:
ILO, Skills mismatch in Europe, 2014
ILO, Skills mismatch in Europe, 2014
Access resource, available in English
This brief is part of the efforts that the ILO Department of Statistics is undertaking to contribute to the statistical understanding and quantification of skills mismatch.The brief provides an overview of approaches to measure skills mismatch, and illustrates two approaches using data from the European Social Survey (ESS).

An encompassing term referring to different types of skill gaps and imbalances, including overqualification and underqualification. Skills mismatch can be both qualitative and quantitative, referring both to situations where a person does not meet the job requirements and where there is a shortage or surplus of persons with a specific skill. Skills mismatch can be identified at individual, employer, sector or economy level (Andersen et al., 2010).

Source:
Based on ILO/ETF/Cedefop 2016: Using Labour Market Information: Guide to Anticipating and Matching Skills and Jobs. Volume 1

Skill mismatch, a particular form of labour market mismatch, refers not only to skill shortages or gaps, but also to qualifications, knowledge and skills exceeding job requirements. Depending on the extent of substitutability between labour of different skill levels, skill imbalances may not necessarily be equivalent to skill shortages, for instance when shortages for medium-qualified workers are easily filled with higher educated individuals (which, nevertheless, may result in rising qualification mismatches in the form of higher overqualification rates). Skill shortages usually refer to recruitment difficulties when firms struggle to hire suitably skilled workers in the external labour market (outside the firm). By contrast, internal skill gaps and skills obsolescence are phenomena that concern the currently employed.

Source:
Cedefop, Skill shortages and gaps in European enterprises, 2015
Cedefop, Skill shortages and gaps in European enterprises, 2015
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By exploring a wealth of available European data sources, the report attempts to single out the extent to which employers' general difficulties in recruitment can be truly attributed to skill shortages, as opposed to other possible factors. It also traces the evolution of skill shortages in EU Member states over time. Finally it scrutinises the critical role that organisations have in adressing not only the skill gaps of their present workforce but also those that may arise in the future due to skill obsolescence.

Situation of imbalance between the skills – and qualifications – possessed by the workforce (supply) and those needed by the labour market (demand).

Comment

Skills mismatch can take different forms:

skill shortage: the demand for a particular type of skills exceeds the supply of the workforce with these skills;
skill surplus: the supply of the workforce with a particular type of skills exceeds demand in the job market;
skill gap: the type or level of skills of the workforce does not match demand in the job market;
skills obsolescence: the skills of the workforce are outdated for performing a job adequately – or no longer needed;
overskilling: the workforce has more skills than required to perform a job adequately;
underskilling: the workforce has less skills than required to perform a job adequately;
horizontal mismatch (inadequate qualification): the type or field of education of the workforce is inappropriate;
vertical mismatch (overqualification/under-qualification): the workforce holds a higher/lower qualification than required;

Skills mismatch can be analysed at individual, enterprise, regional, national or sectoral level.

Source

Cedefop; ILO, 2017

Source:
Cedefop, Glossary. Terminology of European education and training policy, (last accessed 10/2024)
Cedefop, Glossary. Terminology of European education and training policy, (last accessed 10/2024)
Access resource, available in English, French, German
This revised and expanded multilingual glossary defines 430 key terms used in European education and training policy. Building on the Terminology of European education and training policy – A selection of 130 key terms, published in 2014, this latest version, which draws on the experiences of Cedefop’s experts, gives new definitions and covers the latest European Union policy priorities, particularly on skills intelligence and employment.
Terms are provided in 8 languages: German, Greek, English, Spanish, French, Italian, Dutch and Portuguese. Definitions are available in English, German and French.

(skill mismatch)

A situation where there is a (qualitative) discrepancy between the qualifications and skills that individuals possess and those that are needed by the labour market.