The Mismatch of Business Graduates' Skills and Job Requirements in Labor Market of Pakistan

Abstract

The education/skills mismatch has profound impact on individual workers, organization, and on overall national economy. It potentially affects the involvement level of workers into job related tasks. Such low level of involvement negatively affects the overall productivity of the firm. Consequently, the affect is passed through the industries and influence the national labor yield. The mismatch of Education/skills of business graduates and job requirements has significant impact upon wages and job satisfaction. Employees whose education/skills are not matched with their jobs earn less than those whose education/skills matches. On the other side, if the skills of employee are not optimally utilized then he would feel less satisfied than those whose education/skills are optimally utilized. Technological advancement is another factor that contributes to causes of such mismatch phenomenon. All these factors require attention of policy maker of country as well as universities should also provide updated information and curriculum to graduates so that they could meet with the demand of the labor market.