Broadly speaking, mismatches can be defined as imbalances between labour supply and demand across geographic regions, sectors, occupations and skills. In Hungary, the main mismatch is a large structural excess of low-skilled labour supply, resulting in a very low employment rate among this group (Figure 2.2, Panel A, Fazekas and Scharle, 2012). In contrast, high-skilled labour is in somewhat tight supply in certain fields, such as medical professions, and more companies report skill shortages than the European Union (EU) average (European Commission, 2013a).