Based on analysis of 100 million people in 18 global economies the World Economic Forum estimates that a staggering 49% of individuals work in roles unrelated to their formal education.
In our rapidly evolving job landscape, the need to develop and maintain up-to-date knowledge for employment and career progression provide that formal education is only a part of the equation. Skills and adaptability have become paramount. WEF’s report Putting Skills First: A Framework for Action highlights the need to prioritise skill-building and ongoing education.
➡ Dynamic skill landscape
With the accelerated rate of change in industries, it's more about the skills you acquire than the qualifications you earn (outside of many professions whereby accreditation is essential for safety or legal reasons – something the report does not pay much attention to).
➡ Education level mismatch
In advanced economies such as the U.S, France and Republic of Korea, there are significant amounts of people overeducated for their roles (29%, 22% and 40% respectively), whereas in emerging economies undereducation is an issue.
➡ Lifelong learning
Upskilling and reskilling are no longer optional.
Are you in the 49%? I certainly am.
I would argue that for mid career and above individuals, education mismatch is mainstream because of self directed career changes and advancement. But for university graduates, whereby mismatch is associated with involuntary unemployment and difficulties entering the workforce, mismatch is a different issue.
Education-job mismatch in Spain
Education-job mismatches are almost inevitable in the early years of the career of university graduates. New graduates rarely have the exact skills employers require.
Education-job mismatch can be categorized into:
Horizontal Mismatch: When university graduates, trained in a specific field, end up working in another field but at their formal qualification level.
Vertical Mismatch: When graduates are over-educated for their roles, like taking on non-graduate positions or roles unrelated to their field of study.
Research by Manuel Salas-Velasco from the Department of Applied Economics, University of Granada, examining the mismatch of university degrees in Spain’s graduate labour market (where over-education is an issue) found:
➡ Almost 17 percent of Spanish graduates were in non-graduate positions unrelated to their studies four years after graduation.
➡ Mismatches are more prevalent among degrees providing general skills and less so in fields like Medicine, Architecture, or Engineering. However vertical mismatch still retains some of the specific human capital acquired through education.
➡ Countries such as Switzerland, Germany and the Netherlands, with a lower offer of university degrees and an excellent dual system of vocational education and training (VET), have a lower incidence of educational mismatch among their university graduates.
➡ 30% of graduates who were mismatched in their first job became well-matched in their subsequent employment.
Education-job mismatches are not (necessarily) a reflection on the shortcomings of higher education. Some skills are best learned on the job.
What do recent graduates think?
A study by The Workforce Institute think tank of 3,400 of Gen Z in 12 countries including Australia, Germany, U.S.A, U.K and India in 2019 found that education is perceived as a barrier to workplace success by one in four (26%) Gen Zers.
Specifically, they feel their education did not prepare them for common workplace activities such as:
➡ Negotiating (26%)
➡ Networking (24%)
➡ Speaking confidently in front of crowds (24%)
➡ Working long hours (24%)
One in five also feel their education hasn’t adequately prepared them to resolve work conflicts (23%) or be managed by another person (21%).
Future ready?
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