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    • skills obsolescence: the skills of the workforce are outdated for performing a job adequately – or no longer needed;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 or underqualification): 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.