Educational mismatch in skills that graduates possess and market requires creates barriers for organizations as well as for job seekers. The study was conducted to find out the educational mismatch between graduates possessed skills and market demands. Convenient sampling was carried out and data were collected from 200 graduates of economics studying in universities in Punjab, Pakistan. Further, 32 employers of various organizations at Sargodha, Pakistan were also included from whom requisite skills in market was investigated. The statistical techniques t-test and percentage of responses were employed to analyze the data. Analysis shows that there exists difference between graduates possessed skills and employers demand. There also exists difference between achievement level of students and achievement level demanded by employers. Further, it was found that there was a significant difference between skills possessed by male and female, and between high and low achiever graduates in economics. Also significant difference exists in skills graduates possess who are in jobs either full-time or part-time. The study concludes that communication, strategic thinking, abstraction and research skills are the main causes of educational mismatch.