2.1. What is meant by the tem skills mismatch?

**Step 1. Definition** A skills mismatch occurs when the skills possessed by employees or job seekers do not align with the skills required by employers for available positions. **Step 2. Explanation** This situation can happen in two main ways: - **Underqualification:** Workers have fewer or less advanced skills than needed. - **Overqualification:** Workers have more advanced skills than necessary, possibly leading to underemployment. **Step 3. Implications** The skills mismatch leads to inefficiencies in the labor market, where employers may struggle to fill positions effectively, and workers may find it difficult to secure jobs that fully utilize their abilities. **Step 4. Mathematical Concept (Optional)** If we denote: \[ \text{Demanded Skill Level} = S_d \quad \text{and} \quad \text{Worker's Skill Level} = S_w, \] then a simple way to view the mismatch is: \[ \text{Mismatch} = \left| S_d - S_w \right|. \] A non-zero mismatch indicates some level of discrepancy between what is needed and what is available. **Step 5. Conclusion** Overall, the term skills mismatch refers to a discrepancy between the skills present in the labor force and the skills that are in demand by employers, leading to challenges in employment and economic growth.