مجلة الباحث الإقتصادي
Volume 13, Numéro 2, Pages 140-152
2025-12-30

Skills Mismatch In Algeria: A Structural Constraint On Long-term Economic Growth

Authors : Kouider El Ouahed Fatiha . Daoud Fatiha . Pepple Dennis Gabriel .

Abstract

The persistence of skill mismatches in Algeria has far-reaching implications for economic growth, labour market efficiency, and social equity. Mismatches between education output and market demand hinder job creation, leading to higher unemployment rates and reduced economic productivity. The economy’s inability to absorb its educated workforce results in significant economic losses, as overqualified individuals remain underutilised in roles that do not maximise their potential. The primary objective of this paper is to investigate the relationship between skills mismatch and economic performance and how this issue is hindering long-term economic growth. The methodology used to this investigation is based on secondary data collected from reports of World Bank, International Labour Organization, World Development, World Economic Forum, and PIAAC, Statista...etc. The results reveal that Algeria faces significant mismatches between skills possessed by its labour force and the skills demanded by the market. This mismatch has a negative impact on productivity, innovations, and labour competitiveness leading to reduced economic growth and efficiency.

Keywords

skills mismatch ; job misalignment ; over education ; under education ; economic growth