Skills gaps become apparent when the workforce is not sufficiently skilled to do the job to the standard required.

This may be due to insufficient internal training, such as when an employer upgrades equipment and introduces new technology but does not simultaneously upgrade the skills of the existing workforce.

Typically, we find skill gaps where the technical and vocational education and training (TVET) system lags too far behind new employment opportunities.

In Nepal, for example, in one district which has traditionally been almost exclusively agricultural, training providers do not offer programs related to manufacturing skills, even though industry is now becoming established in the area.

The children of local agricultural labourers are taking manufacturing jobs but their base skills level for the work is very low, and this severely hampers productivity and frustrates further industry investment.

Provision of TVET has not kept pace with industry needs.