Horizontal Skills Mismatch Among Technical and Vocational Education and Training Graduates in the Kingdom of Saudi Arabia: A Qualitative Inquiry into the Underlying Causes.

Abstract

This study aims to identify and analyse the causes of horizontal skills mismatch among technical and vocational education and training (TVET) graduates in the Kingdom of Saudi Arabia from an institutional perspective. Utilising a single case study approach, it conducts a qualitative analysis of the existing literature and secondary data while integrating multiple theoretical perspectives. The findings reveal that the key driver of this mismatch is the employment packages offered by family-owned small and medium-sized enterprises (SMEs). These enterprises represent a considerable portion of the private sector and are often described in the literature as facing challenges related to governance, growth, and long-term human resource development plans, which may reflect financial constraints. As a result, they are often found to provide employment packages that are perceived as unattractive, leading graduates to prefer working in any sector that offers better remuneration and career prospects even if it does not align with their acquired skills. This study contributes to understanding the factors behind the horizontal skills mismatch and highlights the significance of the Saudi government’s current investments and initiatives, particularly under Vision 2030 and its programmes, to enhance the capabilities of family-owned SMEs and mitigate this mismatch.