Abstract:
When a person unable to obtain suitable employment that matches their educational
level, it is referred to as a mismatch between skills and labour market demands. The
two main types of mismatches are horizontal and vertical. According to the Sri Lanka
Labor Force Survey Annual Report 2022, the underemployment rate in Sri Lanka is
2.7%, while the unemployment rate for graduates is 7.5%. In 2022, the unemployment
rate for female graduates is 9.9%, compared to 5.1% for male graduates. The main
objective of this study was to identify the determinants of the skills mismatch of
graduates and labour market demands in Sri Lanka. It was identified the population
as graduates of Sabaragamuwa University from the years 2019 to 2022, totaling 4090
graduates. A sample of 364 graduates was selected using a simple random sampling
technique, and primary data were collected through questionnaires. Binary logistic
regression was employed to analyze the primary objective of the research. The data
were analyzed using the statistical software SPSS, with 22 variables included for
analysis. Among these variables, reflectiveness, problem-solving, self-awareness,
creativity, and stress tolerance were identified as significant factors affecting the
mismatch between graduate skills and labor market demands in Sri Lanka at a 0.05
significance level. The findings may assist universities and policymakers in
formulating evidence-based strategies to align higher education outcomes with
labour market requirements through curriculum reforms, skills development
initiatives, and stronger industry engagement, ultimately enhancing graduate
employability.
