GRADUATE SKILL MISMATCH AND LABOR MARKET REQUIREMENTS. A STUDY OF INTERNAL GRADUATES AT SABARAGAMUWA UNIVERSITY OF SRI LANKA FROM 2019 TO 2022

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.