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Abstract: Skill mismatch is a contemporary phenomenon that characterizes the labor market, but made even more evident by the increase in the youth unemployment rate and the acceleration towards digital transformation after the global pandemic.
WORK OPPORTUNITIES EXIST, BUT COMPANIES DO NOT FIND QUALIFIED PROFILES: THE DATA SPEAK.
In the Italian context, according to a survey released by Istat regarding the world of work, for the first time in over a year, the youth unemployment rate returns to above 30%. Specifically, the research institute specifies that on an annual basis unemployment has increased among those under 35, while it has decreased in the other classes. To date, in fact, the unemployment rate between the age group between 25 and 34 years is 15.9%, almost triple that of the age group 50-64, growing by 0.9 points in the last month and 1.4 points in the last year.
To make the situation worse, in this already dramatic context, is the Excelsior bulletin produced by Anpal and Unioncamere in which it is highlighted how in the labor market there is an increasingly wide skill mismatch between demand and job offer. In fact, the research states that 31% of companies to date experience difficulties in finding 1.2 million contracts scheduled in the first three months of 2019 with an unsatisfied need for technical, scientific and engineering figures. A fact that is effective, if we consider that the youth unemployment rate remains - firmly - above 30%. But what exactly is the skill mismatch and why is it important to understand it?
THE SKILL MISMATCH WHAT IT IS AND WHY IT IS IMPORTANT TO UNDERSTAND IT
The Boston Consulting Group report, "Fixing the Global Skills Mismatch", highlights how the skills mismatch represents a kind of hidden annual "tax" that corresponds to 6% of world productivity, equal to about 5 trillion dollars, which is borne by companies, workers and the entire world economy. Two out of five workers in OECD countries will be affected and the number is constantly increasing: in 2030 the report estimates that, if not filled, this skills gap will involve 1.4 billion people, with increasingly profound damage to the world economy.
Specifically, when we talk about skills mismatch we refer to a mismatch between the skills sought by employers and those possessed by individuals. Simply put, it is a mismatch between skills and jobs. This means that education and training do not provide the skills required in the labor market or that the economy does not create jobs that match the skills of individuals.
There are several types of skills mismatch:
- Over or under skilling. When a person can be either highly skilled or low skilled. This happens when the field of education does not correspond to the field of employment.
- Skills obsolescence often accompanies digitalization and technological advancement, but can also occur when skills are not exercised regularly and become obsolete over time. Both scenarios can be the result of changing demands in the labor market.
- Co-exist mismatch. When different types of mismatches coexist at the same time: for example, a person may be overqualified and under-qualified at the same time. This often happens when the field of education does not correspond to the field of employment.
The consequences of skills mismatch reach all levels of the labor market:
- At an individual level, especially as regards highly qualified people, skills mismatch leads to wage discrepancies that negatively affect the degree of job and personal satisfaction. In fact, due to the skills mismatch such people are unable to find a job that matches their skill level, and therefore are not employed to their full potential.
- For companies, however, the misalignment of skills has negative consequences on productivity and competitiveness. This inevitably affects the company's ability to implement new products, services or technologies. Furthermore, the skills mismatch within a company context can cause a greater turnover of staff and a less than optimal work organization. Therefore, the mismatch of skills leads to the loss of profits and markets.
- For countries and regions, skills mismatch is a major cause of unemployment and can affect competitiveness and attractiveness for investors. This leads to a significant loss of opportunity on the path to productive transformation and job creation. Public or private resources invest in training on the assumption that the qualifications obtained will produce positive results in terms of job placement or pay. However, if there is a mismatch in skills, these expectations often do not materialize, leading to lower than expected returns on investments.
CAUSES OF THE MISMATCH SKILL
One of the main causes of the skills mismatch is attributable to the digital transformation, which has resulted in a drastic change in skills within the world of work made even faster by the outbreak of the health crisis linked to the coronavirus. In fact, already in recent years, in a highly interconnected and increasingly digital world, the most requested profiles in the job market have become those able to fill those skills necessary to keep up with digital transformation, such as the data analyst, data protection officer, cyber security expert etc. However, as of today, as emerges from a Unioncamere report, in Italy we are among the last places in Europe with regard to digital infrastructures and also human capital prepared for the digital challenge, about 38% of job offers in the field of development of software, with peaks of 65% for 4.0 engineers and artificial intelligence experts, does not find profiles and over 3% of these professionals are imported from abroad. Same thing in the ICT sector.
HOW TO SOLVE THE MISMATCH SKILL: THE GEEKS ACADEMY
In an interview with dunp, Antonio Venece, director of the Geeks Academy, explains how the idea of ??founding Geeks in 2016 was born from the need to bridge the gap between the lack of specialized professional profiles and youth unemployment.
In fact, Geeks Academy was founded to bridge the growing skills gap in the field of computer coding, artificial intelligence, data sciences, web security, blockchain, gaming and digital marketing and the consequent lack of professional profiles. The objective is precisely to be at the forefront and to provide through the various study programs lasting 6 months, which range from the acquisition of basic, intermediate and specialized knowledge, a preparation that allows to obtain comprehensive knowledge on issues related to the various paths and an immediate job outlet.
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