Background
Over the past decade, the European labour market has seen rapid changes, with new roles and occupational profiles arising. The green and digital transitions are contributing to increasing the pace of these changes and are already affecting a significant number of job profiles. The digital sector has seen the demand for jobs in the digital technology field skyrocket, with as 3.5 million job vacancies in the cybersecurity sector alone.
In this context, education systems are increasingly under pressure to respond to new and ever-evolving labour market needs, with a concrete risk that existing gaps between skills and competences taught in formal education settings and those required by employers will keep widening. Data already shows that more than 75% of EU companies currently experiences difficulties in finding workers with the necessary skills to fill open positions, potentially indicating that degree-based hiring pathways may no longer be adequate to address existing and emerging skills needs.
A "skills first" approach is gaining traction as a potential solution to these challenges. It entails a novel approach to talent management that places greater attention to a person’s skillset and competencies rather than academic achievements or previous job titles. As such, the “skills first” approach switches the focus by prioritising competencies and skills acquired through non-traditional pathways, such as online courses, vocational training, or work experience over formal qualifications, focusing on the dynamic skills individuals have rather than the academic credentials or static job titles they hold.
The "skills first" approach also responds well to policy, funding and strategic priorities at EU level. The European Skills Agenda aims to ensure European citizens have the skills they need to adapt to and thrive in the labour market, including by promoting new avenues for skills development. Initiatives such as the the Blueprints for sectoral cooperation, funded by Erasmus+, foster the development of skills strategies to map skills needs in a given sector, supporting relevant actors to develop concrete education and training solutions to stay ahead of market needs and new, emerging jobs. Finally, the foreseen establishment of a Union of Skills aims to support skills portability to enable people to work across countries and sectors, underlying the importance of skills development as a key driving force for a healthy and competitive European labour market.
At the same time, a "skills first" approach poses challenges. It requires promoting and investing in skills intelligence to anticipate changes and needs across different sectors, profiles and tasks. Moreover, it calls for more coordination among public authorities, education stakeholders and private actors to develop skills-based learning programmes. Lastly, a "skills first" approach requires careful considerations on how to assess and recognise competences across jobs, sectors, or countries.
Objective
With its growing membership and ongoing efforts to promote and strengthen partnership building, the Pact for Skills represents an important platform to discuss and assess the challenges and opportunities of implementing a "skills first" approach from the perspective of different stakeholders and contribute to concrete change on the ground.
This thematic seminar will provide a platform to discuss the potential benefits and challenges of implementing a "skills first" approach in the European labour market. Participants will have the opportunity to hear from thematic experts to gain a better understanding of the ‘skills first’ approach, as well as the potential added value it may bring to labour market actors and broader society. The event will also be a space to showcase existing examples within the Pact membership of steps taken to ensure more effective hiring practices that can better respond to ongoing trends and contribute to sustainable economic growth.
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