Skills matching

Skills Matching represents the degree of successful utilisation of skills, the extent to which skills are effectively matched in the labour market. This can be observed in the form of jobs and mismatches which include unemployment, shortages, surpluses or underutilisation of skills in the labour market. Sub-pillars are included to distinguish skills under-utilisation and skills mismatch. The skills utilisation sub-pillar comprises 2 indicators to measure different aspects of skills under-utilisation: long-term unemployment; and the underemployment of part-time workers (those who declare that they work part-time because they are unable to find full-time work). The skills mismatch sub-pillar comprises 3 indicators to measure different aspects of surpluses or underutilisation of skills in the labour market: overqualification rate (those with higher education that have a job that does not require it); low-waged workers (tertiary graduates that are low-waged earners); and qualification mismatch (the extent to which each employee’s education attainment level matches the modal education attainment level for each occupation in each industry).