What’s in a name? Labour shortages, skills shortages, and skills mismatches

Key findings from the report include; Labour shortages, skills shortages, and skills mismatches negatively impact individual well-being and dampen growth, productivity, and competitiveness at both the firm-and economy-wide level. These three concepts are often used interchangeably, creating confusion and uncertainty, potentially leading to inappropriate or ineffective solutions. As such, the following definitions are recommended: o Labour shortages refer to a lack of candidates for a specific job in a specific labour market. o Skills shortages refer to a lack of candidates with the skills required by particular employers. o Skills mismatches refer to situations in which an employee’s current skills are not well suited to their current job.