Tackling incre­a­sing skill mis­mat­ches in European labour markets

The great resi­gna­ti­on, silent quitting and worsening skill shortages. The chal­lenges for employers to navigate through the effects of recent multiple crises are enormous. Short-time work on the one hand and skill shortages on the other have rarely been so close together as in recent years. Extreme skill and labour shortages have become obvious in many sectors and occu­pa­ti­ons in Europe.

Workers, for their part, are affected by incre­a­sing inse­cu­ri­ty. Job losses due to auto­ma­ti­on, new forms of employment such as crowd work and fast rising costs of living are incre­a­sing the working precariat, but also affecting the middle class.

Skill mis­mat­ches are detri­men­tal in multiple ways: Employers struggle to find qualified personnel, not only to maintain pro­duc­ti­vi­ty but also to develop and implement inno­va­tions needed to succeed in inter­na­tio­nal com­pe­ti­ti­on. While highly qualified workers and employees can be more selective in their career choices, those with low or outdated skills are in danger of unem­ployment or to end up in pre­ca­rious situa­tions. This could lead to the hampering of a greener future in com­bi­na­ti­on with more frequent labour disputes, as has already been witnessed during the fast-incre­a­sing inflation in 2022.

How do skill systems need to develop if they are to support people in labour market tran­si­ti­ons – i.e. between jobs, employers or sectors – and thereby reduce the level of skill mismatch which might otherwise arise?

The Skills2Capability project addresses the question of how skill systems can better respond to skill demands in a more fluid labour market envi­ron­ment. The research will provide decision-makers in govern­ment and education aut­ho­ri­ties with infor­ma­ti­on which allows them to gain a better under­stan­ding of how to meet emerging skill needs – of both economy and society.

The project is funded with appro­xi­m­ate­ly 2.4 million Euros over a three-year period starting from 2023. Coordinated by 3s, Dr Jörg Markowitsch, it involves partners from Bulgaria (Institute of Philosophy and Sociology, Bulgarian Academy of Sciences), Estonia (Tallinn University), Finland (Finnish Institute for Educational Research, University of Jyväskylä), Germany (Federal Institute for Vocational Education and Training, BIBB), Norway (Fafo Research Foundation), the Netherlands (Research Centre for Education and the Labour Market, Maastricht University), Italy (University of Padova) and the United Kingdom (University of Warwick).

More infor­ma­ti­on on the project:

Work Package 2 — Analysis of strategic policy documents

Further reading:

News: Strategic approa­ches to skills deve­lo­p­ment, Apr 2024

News: On the islands of the Serenissima — Horizon partner meeting, Apr 2024

News: Join us for a dynamic event: SKILL HORIZONS, Apr 2024

News: Review of the Event: Labour Shortages and Skill Mismatches, Apr 2023

News: Kick-off of the Horizon Europe project Skills2Capabilities, Apr 2023

News: Labour Shortages and Skill Mismatches – What can be done?, März 2023