Key Indicators of Labor Market Flexibility & Skill Shortages

The paper examines skill shortage among management graduates in India and explores the specific labor market dynamics that underlines skill shortage in Indian firms. The paper critiques the neoclassical perspective which dominates current discourses on skill shortage in the firm. A structured schedule is used to interview key decision makers from 102 firms, drawn from three Indian metropolises: Mumbai, Bangalore and Hyderabad. Firms need to adapt to the constraints of skill shortage by hiring management graduates who can be trained in employable skills requiring firm to invest more on human capital formation. The study unraveled strategic implications that emanate from three diverse contexts: vacancies, skill shortage vacancies and hard to fill vacancies.