The onus of preparing skilled employees for the modern workforce is largely placed on institutions of higher education. However, recent surveys consistently show a skills gap between what employers’ desire and what graduates possess. This review engages this discussion in the context of measuring and assessing 21st century skills. We begin by succinctly reviewing literature pertaining to the skills gap, including what types of skills are commonly referenced, before moving to examine literature indicating the relations between current 21st century skills and job-related outcomes. Finally, we conclude with recommendations for higher education researchers examining skill development. Our recommendations cover three key corresponding areas: theories of cognitive development, intervention design, measurement and assessment.