COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Skills Agenda for sustainable competitiveness, social fairness and resilience
Date: 2020-07-01
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: competitiveness, cooperation in the field of education, digital single market, education policy, epidemic, infectious disease, labour market, sustainable development, updating of skills, vocational education

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 1.7.2020  COM(2020) 274 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Skills Agenda for sustainable competitiveness, social fairness and resilience    {SWD(2020) 121 final} - {SWD(2020) 122 final}  
 
 
“The best investment in our future is the investment in our people. Skills and education 
drive Europe’s competitiveness and innovation. But Europe is not yet fully ready. I will 
ensure that we use all the tools and funds at our disposal to redress this balance.”  

President Von der Leyen 

“Everyone has the right to quality and inclusive education, training and lifelong learning 
in order to maintain and acquire skills that enable them to participate fully in society and 
manage successfully transitions in the labour market.” 

Principle 1 of the European Pillar of Social Rights  

We live in a time of transitions. The twin green and digital transitions are reshaping the 
way we live, work and interact. The EU’s move to a resource-efficient, circular, digitised 
and  climate  neutral  economy  and  the  wide  deployment  of  artificial  intelligence  and 
robotics are expected to create new jobs1 while other jobs will change or even disappear. 
Demographic change will require Europe to draw on all of its talents and diversity. At the 
same time, it will also generate new job opportunities in the silver and care economies. 
These transitions show the need for an unparalleled shift in skill sets to reap their full 
potential.  

The COVID-19 pandemic has accelerated the digital transition. While telework and 
distance learning have become a reality for millions of people in the EU, the limitations 
of  our  current  digital  preparedness  were  often  also  revealed.  The  pandemic  has 
accentuated the digital skills gap that already existed and new inequalities are emerging 
as  many  people  do  not  have  the  required  level  of  digital  skills  or  are  in  workplaces  or 
schools lagging behind in digitalisation.  

The  pandemic  has  also  significantly  impacted  the  career  opportunities  for  many 
people in the EU. The EU’s GDP is currently estimated to fall by over 7% in 2020 and 
unemployment to reach 9%, up from 6.6% at end 2019 - with some countries being even 
more  affected.  Commission  estimates2  show  that  some  sectors  are  projected  to 
experience the largest losses in real gross value added in 2020, ranging from 20% to 40% 
compared to 2019 levels. Moreover, specific sectors could see a more than 70% drop in 
turnover in the second quarter of 2020. Countries and regions where the economy relies 
strongly on these sectors will face greater difficulties to recover.  

To  face  this  challenge  and  to  push  forward  the  twin  transitions,  the  Commission  has 
proposed an ambitious recovery package to build a more sustainable, resilient and fairer 
Europe for the next generation3. As Europe sets off on its path to recovery, the need to 
improve and adapt skills becomes an imperative. This will also be crucial to enable the 
EU, as a geopolitical actor, to pursue its leadership towards global recovery. 

Now, more than ever, the EU needs a paradigm-shift on skills. One that delivers a 
bold  skills  agenda for  jobs  to  drive  the  twin  transitions  and  ensure  recovery  from  the 
socio-economic impact of the COVID-19 pandemic and in order to: 

1  Before  the  outbreak  of  the  COVID-19  pandemic,  it  was  estimated  that  1  million  jobs  would  be  created  by  2030. 
Employment  and  Social  Developments  in  Europe  (ESDE),  2019.  Similarly,  it  was  estimated  that  these  technologies 
would create almost 60 million new jobs worldwide in the next 5 years.  
2 Identifying the recovery needs; SWD (2020) 98 final 
3 COM(2020)442 final. 

 
 
 
 
 
 
                                                 
  Strengthen sustainable competitiveness: Skills and lifelong learning are crucial for 
long-term  and  sustainable  growth,  productivity  and  innovation  and  therefore  a  key 
factor  for  the  competitiveness  of  businesses  of  all  sizes,  in  particular  small  and 
medium-sized enterprises (SMEs)4. Providing people with the right skills allows them 
to  work  more  effectively  and  take  advantage  of  advanced  technologies5,  eliminates 
the  major  obstacle  identified  to  business  investment6,  prevents  labour  market 
mismatches7  and  lays  the  ground  for  research  and  development  (R&D)  and  firm-
based  innovation.  It  is  only  with  the  right  skills  that  Europe  can  strengthen  its 
position  in  global  competition  and  have  a  sustained  economic  relaunch  geared 
towards the green and digital transitions. This means, in particular, delivering on the 
European Green Deal, which is the EU’s growth strategy, and in the strategic sectors 
and ecosystems identified in the EU’s new Industrial Strategy. 

  Ensure social fairness: Access to up- and reskilling opportunities is vital for the tens 
of  millions  of  workers  propelled  into  short-time  work  or  unemployment,  no  matter 
their current level of skills or area of qualifications. Europe’s recovery will only be a 
success if cohesive and no one is left behind. Having the right skills means being able 
to  more  easily  stay  employed  and  master  job  transitions.  This  requires  providing 
equal  access  to  additional  up-skilling  opportunities  for  all  people,  regardless  of 
gender, racial or ethnic origin, religion or belief, disability, age or sexual orientation, 
and  including  low-qualified/skilled  adults  and  people  with  a  migrant  background. 
Similarly, all territories should be covered, from big cities to rural, coastal or remote 
areas across the whole EU.  

  Build our resilience: the last few months put a number of professions under strong 
pressure.  This  is  particularly  the  case  of  health  and  care  professionals,  as  well  as 
frontline  workers  in  retail,  transport,  social  or  sanitation  services  and  teachers  and 
trainers. Having enough skilled workers in these strategic sectors is crucial to ensure 
effective access to basic health, social or educational services for citizens in a period 
of  crisis.  For  the  individual,  improving  resilience  through  skills  means  reducing 
dependence  on  market  conditions  and  increasing  his  or  her  potential  to  navigate 
through  life  and  professional  transitions.  Moreover,  the  COVID-19  pandemic  has 
also  shown  the  need  to  be  digitally  ready  to  continue  educational  and  business 
activity.  Challenges  to  IT  infrastructure  and  e-systems  have  revealed  the  need  to 
improve our human capacity for cybersecurity preparedness and response.  

To succeed, lifelong learning for all must become a reality in Europe. All Europeans 
should  have  access  to  attractive,  innovative  and  inclusive  learning  programmes  also 
because  skills  become  obsolete  more  quickly.  Education  at  a  young  age  remains 
fundamental,  but  is  only  the  beginning  of  a  life  full  of  learning:  from  early  childhood 
education  and  care,  through  primary  and  secondary  schooling,  to  technical,  vocational 
education  and  training  and  tertiary  education  to  adult  learning.  Learning  throughout 
life, including at an older age, is what will make the difference. Yet less than two in five 
adults participate in learning every year. This is not enough to relaunch our economy and 
reap all the benefits of the green and digital transitions. Each person in the EU should be 
empowered and rewarded to up- and reskill. 

4  European  Commission  (2017),  Investment  in  Human  Capital  –  Assessing  the  Efficiency  of  Public  Spending  on 
Education, Note for the Eurogroup on 6 November 2017. 
5 Woessmann, L., The Economic Case for Education, EENEE Analytical Report No. 20, Ifo Institute and University of 
Munich, 2017. 
6  In  the  European  Investment  Bank’s  Investment  Survey  2017,  almost  80%  of  firms  cited  lack  of  skilled  staff  as  an 
obstacle to their investment. 
7 European Commission (2014), The Economic Case  for Education. Background paper prepared by the Commission 
services to inform the policy debate of the Council on 12 December 2014. 

2 

 
                                                 
Skilling for a job should be the guiding principle in this endeavour. This means starting 
from  a  mapping  of  each  individual’s  skill  set,  delivering  targeted  training  which  meets 
specific up- and reskilling needs, and helping the individual find a job in demand on the 
labour market. 

Whilst  most  responsibilities  for  skills policies remain  at  the  national,  regional  and 
local  level,  Europe  has  an  important  role  to  play.  Many  people  work  for  small 
companies  belonging  to  value  chains  that  span  across  Europe.  In  all  sectors,  from 
automotive to textile, from pharmaceuticals to energy, there is a European chain of talent. 
Strengthening  this  chain  will  reinforce  the  Single  Market  and  the  resilience  of  our 
economy. The EU can encourage and support Member States to enact policies that go in 
the same direction and effectively address the twin transitions and reinforce the resilience 
of our economy and society.  

Europe  also  provides  valuable  support  through  its  budget.  The  Commission’s 
proposal for a Next Generation EU8 harnesses the EU budget to support Member States’ 
recovery  and  kickstart  the  economy.  With  a  revamped  long-term  budget  of  1.1  trillion 
euro reinforced by a dedicated temporary ‘Next Generation EU’ instrument of EUR 750 
billion,  the  EU  is  mobilising  to  invest  in  a  sustainable,  inclusive  and  fair  recovery. 
Investments  in  skills  are  at  the  heart  of  these  proposals.  They  put  at  the  disposal  of 
Member  States  unprecedented  opportunities  for  financing  skills  policies  that  strengthen 
the resilience to economic shocks and the ability to bounce back quicker from the current 
downturn and towards the twin transitions. 
Starting  with  the  Skills  Agenda9  adopted  in  2016  and  unlocking  the  potential  of  the 
Recovery  Plan  for  Europe,  this  novel  Skills  Agenda  covers  the  following  five  building 
blocks and: 

The novel Skills Agenda delivers on the European Pillar of Social Rights and notably its 
first  principle  spelling  out  the  right  to  quality  and  inclusive  education,  training  and 
lifelong learning. It is also firmly anchored in the European Green Deal10, new Digital 
Strategy11,  and  the  new  Industrial  and  SME  Strategies12  as  skills  are  key  to  their 
success.  Moreover,  it  also  supports  the  proposal  for  a  Council  Recommendation  on  a 

8 COM(2020)441 final/2. 
9 COM(2016) 381 final. 
10 Commission Communication on the European Green Deal, COM(2020) 640 final. 
11 European Digital Strategy, 2020 https://ec.europa.eu/digital-single-market/en/content/european-digital-strategy  
12 COM(2020) 102 final and COM(2020) 103 final. 

3 

 
 
                                                 
“Bridge  to  Jobs  –  reinforcing  the  Youth  Guarantee”  which  the  Commission  has 
adopted today and takes account of the findings of the recent Report on the Impact of 
Demographic  Change13.  The  New  Circular  Economy  Action  Plan  and  the  EU 
Biodiversity Strategy for 2030 also highlight the key role of skills in the transition to a 
green economy. 

It inter-links with other policy initiatives that support the lifelong learning approach. It 
will be followed by further proposals providing a new impetus in the field of education, 
in  particular  an  initiative  making  the  European  Education  Area  a  reality  by  2025 
through  bringing  down  barriers  across  the  Union  to  learning  and  promoting  innovative 
and  inclusive  education  and  training  for  all.  The  European  Research  Area  also 
promotes  up-  and  reskilling  of  talent  especially  in  academia.  Together,  these  initiatives 
will help build a culture of lifelong learning in Europe, foster a demand-led approach to 
strengthening cooperation with industry and boost the employability of citizens.  

13 COM (2020) 241 final. 

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1. WORKING TOGETHER UNDER A PACT FOR SKILLS 
There is a strong potential in boosting joint action to maximise the impact of skills 
investment.  Skills  policies  and  actions  are  shared  between  many  actors.  Ministries, 
education  and  training  providers,  the  industry  itself,  research  organisations,  social 
partners,  chambers  of  commerce  and  employment  agencies  are  only  a  number  of  those 
who contribute to making up- and reskilling a reality. Concerted efforts can bring clarity 
to  individuals  and  companies  throughout  the  value  chain,  reduce  costs  and  focus  on 
priorities.  

Successful skills programmes combine the different phases in order to accompany each 
worker  in  his  or  her  re-  or  up-skilling:  from  identifying  skills  needed  for  the  twin 
transitions, building up those skills through targeted training programmes and supporting 
their use at the workplace or leading to new jobs.  

A  first  building  block  of  the  Skills  Agenda  is  to  foster  cooperation  through  a  Pact  for 
Skills. 

Action 1: Pact for Skills 

The  Pact  will  mobilise  a  concerted  effort  for  quality  investment  in  skills  for  all  working  age 
people across the Union. 

The  Pact  for  Skills  will  bring  together  all  stakeholders,  private  and  public,  which  share  the 
objective  of  up-  and  reskilling  Europe’s  workforce  to  enable  people  to  participate  in  the  twin 
transitions.  All  these  stakeholders  will  sign  a  Charter,  which  will  define  the  key  principles14 
that are essential to up- and reskill the workforce, within their organisations but also across their 
value chain or ecosystem. The Charter will be co-created with stakeholders.  

The  Pact  will  facilitate  public-private  cooperation.  In  particular,  it  will  set  up  large-scale 
partnerships, including at regional level, in strategic industrial ecosystems15 and priority areas 
identified in the European Green Deal to achieve ambitious commitments.  These partnerships 
will  involve  all  stakeholders,  notably  SMEs  who  struggle  with  access  to  skills.  Stakeholders 
will be encouraged to pool expertise, resources (for example training facilities within the value 
chain) and funding towards concrete up- and reskilling actions with clear commitments that will 
allow people to keep, change or find new jobs. 

The  Pact  will  also  facilitate  access  to  information  on  EU  funding  instruments  for  skills  by 
offering a single-entry point at EU level. 

The  launch of the Pact during  the European Vocational  Skills Week  in  November 2020  will 
involve the European Social Partners, the European Parliament, the Presidency of the Council 
of  the  European  Union,  the  European  Commission,  stakeholders  from  strategic  industrial 
ecosystem and other stakeholders. 

Miguel  manages a small company  supplying specialised parts for electric cars, an area  where 
technological  development  is  fast.  Thanks  to  the  Pact  for  Skills,  his  company  joined  a  wide 
partnership  involving  the  whole  supply  chain.  His  staff  can  now  benefit  from  cutting-edge 
training, designed together with a research institute, in facilities owned by larger companies. 

Social Partners in a given sector agree to introduce in each concerned company a number of 
“training ambassadors”. These are employees who inform their colleagues about their training 
possibilities as well as about their training rights and motivate them to use them. In particular, 
low-skilled persons can be reluctant to talk to their supervisors about their training needs. The 
ambassadors would help to overcome this hurdle. 

14 These will include anti-discrimination and gender considerations. 
15 As indicated in the EU Industrial Strategy adopted in March 2020. 

5 

 
 
 
                                                 
The Pact for Skills will build bridges between pre-existing EU initiatives for cooperation 
and become, where relevant, the single-entry point for: 

  The  Blueprint  for  Sectoral  Cooperation  on  Skills  to  define  sectoral  skills 
intelligence,  map  key  occupation  needs,  define  occupational  profiles  and  roll-out 
training  programmes.  The  idea  of  skilling  for  a  job  is  ingrained  in  the  DNA  of  the 
Blueprints  and  they  will  be  upscaled,  opened  to  more  sectors  and  benefit  from  a 
reinforced budget. The Blueprints process will be significantly accelerated to ensure 
that  it  delivers  timely  outputs  in  phase  with  the  skills  needs  of  undertakings  and 
individuals.  The  revamped  Blueprints  will  also  add  a  link  to  employment 
opportunities at the end of the training programme.  

  The  reinforced  European  Alliance  for  Apprenticeships.  As  set  out  in  the 
Communication  on  Youth  Employment  Support:  Bridge  to  Jobs  for  the  Next 
Generation16, it will mobilise new pledges to sustain apprenticeship offers despite the 
current economic downturn and to develop apprenticeship programmes. The renewed 
Alliance  will  launch  new  national  apprenticeship  coalitions,  giving  a  voice  to 
apprentices and reinforcing social dialogue.  

  The  Digital  Skills  and  Jobs  Coalition  will  canvass  pledges  from  Member  States, 
companies, social partners, non-profit organisations and education providers for new 
training programmes, recruitment or reskilling of the existing workforce to improve 
digital skills. A recent call for pledges in the context of COVID-19 has received more 
than 70 new pledges17. By strengthening the administrative support to the Coalition, 
the  Commission  will  provide  a  one-stop  shop  allowing  sharing  digital  content,  best 
practices and training opportunities, including for SMEs.  

The Pact for Skills is pan-sectoral and open to all stakeholders. It will initially focus on 
those  industrial  ecosystems  heavily  affected  by  the  current  crisis  and  the  priority 
areas identified in the European Green Deal, for which ambitious up- and reskilling 
strategies will be essential to push forward the recovery, covering other ecosystems 
and areas later on: 

  Health:  the  COVID-19  pandemic  reminded  us  how  much  we  depend  on  health 
workers,  who  are  required  to  acquire  skills  and  undergo  training  in  infection-
containment,  quarantine  protocols,  use  of  protective  gear  and  clinical  management 
responsibilities.  While  the  health  and  social  care  sector  makes  up  10%  of  total 
employment  in  the  EU,  estimates  forecast  an  increase  by  more  than  830,000  new 
jobs, which together with replacement needs means 8 million job openings in the next 
10  years18.  Additionally,  to  satisfy  the  needs  of  healthcare  organisations  to 
successfully  deploy  new  digital  technologies,  such  as  artificial  intelligence,  that 
improve the quality of care and increase efficiency in Member States’ health systems, 
the  demand  for  basic  and  advanced  digital  skills  will  grow  significantly  by  2030.19 
This reveals a significant skills gap that will only be aggravated due to demographic 
ageing and the rise of chronic diseases. Filling this gap is crucial to guarantee a high 
level of resilience and fairness of national welfare systems across the EU.  

16 COM(2020) 276 final. 
17 Pledges are commitments by private or public organisations to make a direct contribution to reducing digital skills 
gaps  facing  Europe,  such  as  committing  to  providing  skills  training  or  placements  or  access  to  digital  skills 
development opportunities. They can be found at: https://pledgeviewer.eu/ 
18 CEDEFOP Skills Panorama, Health professionals and associate professionals. 
19 EIT Health and McKinsey, 2020, 'Transforming healthcare with AI: The impact on the workforce and organisations'. 

6 

 
 
                                                 
  Construction: the COVID-19 pandemic has had an important impact on the sector20, 
mostly composed of small and micro-firms that provide local employment (more than 
90%  are  SMEs21).  This  sector  of  12  million  workers  finds  it  difficult  to  attract  the 
young  and  qualified22.  Skills  gaps  are  visible  in  green  design,  technologies  and 
materials.  As  recovery  starts,  upskilling  needs  to  focus  on  energy-  and  resource 
efficiency,  decentralised  renewable  energy  solutions,  circularity,  digitisation,  and 
renovation  of  existing  constructions,  complying  with  accessibility  requirements23 
become  apparent.  The  availability  of  skilled  construction  workers  is  key  to  the 
success of the European Green Deal’s Renovation Wave. 

  Automotive and Transport: the travel restrictions put in place during the COVID-
19  pandemic  have  had  a  significant  impact  on  the  aviation,  rail,  maritime,  inland 
navigation  and  road  sectors  and  have  strongly  affected  the  transport  sector  that 
employs  more  than  9  million  people  in  the  EU.24  The  containment  measures  also 
significantly disrupted the automotive industry and its extensive supply chain, with at 
least 1.1 million jobs affected by factory shutdowns25. The automotive sector, which 
accounts for 7% of EU GDP, was already confronted with major structural changes, 
and  an  imperative  to  invest  in  digitalisation,  green  technology  (e.g.  batteries26  to 
bring  along  electrification  of  transport  and  other  alternative  fuel  solutions)  and 
greater  connectivity  and  automation  as  well  as  transform  existing  business  models 
and  value  chains.  The  transport  and  especially  the  automotive  sector  needs  a  clear 
agenda  to  boost  a  range  of  new  skills  including  big  data  analysis,  software 
development, artificial intelligence, robotics, chemistry, electronic engineering and a 
new  range  of  soft  skills.  The  maximization  of  the  use  of  these  skills  across  the 
ecosystem and supply chains should be encouraged, for example in the roll out of the 
electrical charging infrastructure.  

  Tourism: the COVID-19 pandemic has reduced activity by 80% and without urgent 
action 6 million jobs are at risk27. Skills needs range from online marketing, recycling 
and  management  of  waste,  water  and  energy  services  for  the  transition  to  more 
sustainable  tourism,  to  cross-cultural  understanding  and  communication,  as  well  as 
new  hygiene  protocols28.  Optimising  travellers’  experience  will  be  based  on  a 
combination of digital data and human service. The existing Blueprint29 has already 
identified  these  skills  gaps  and  new  job  profiles.  It  now  needs  to  be  upscaled  as 
technological innovation and social trends are changing faster than some companies 
can  keep  up  with.  Staff  will  need  to  be  able  to  work  in  different  departments,  at 
different levels and use various tools and applications. 

20 OECD, Evaluating the initial impact of COVID-19 containment measures on economic activity, Figure 1 
21 In 2017, 94% of companies in construction were SMEs, Eurostat [sbs_sc_con_r2]. 
22 European Builders Construction, web page on skills 
23 Directive (EU) 2019/882 on the accessibility requirements for products and services. 
24  Transport 

in  Figures  2019  https://op.europa.eu/en/publication-detail/-/publication/f0f3e1b7-ee2b-11e9-a32c-

01aa75ed71a1  

25 European Automobile Manufacturers Association (ACEA), Employment impact of COVID-19 on the European auto 
industry 
26 A Blueprint project on skills needed for the battery sector ‘ALBATTS’ has been launched which will be important 
not only for the automotive sector but also for the growing energy storage sector. 
27 COM(2020) 550 final: Tourism and transport in 2020 and beyond. 
28 C(2020) 3251 EU Guidance for the progressive resumption of tourism services and for health protocols in hospitality 
establishments – COVID-19 2020/C 169/01. 
29 https://nexttourismgeneration.eu/ 

7 

 
 
                                                 
2.   SKILLING  FOR  A  JOB:  ALIGNING  POLICIES  TO  DELIVER 

RESULTS 

Embedding the idea of ‘skills for jobs’, the second building block of the Skills Agenda, is 
taking a comprehensive approach to up- and reskilling, that covers the whole value chain.  

It starts with reliable skills intelligence to deliver training relevant for the labour market. 
This  needs  to  be  embedded  in  national  skills  strategies  and  in  training  and  education 
systems.  Individual  companies  should  also  develop  internal  processes  to  identify  skills 
gaps and measures to address upskilling of their own workforce. 

This section sets out the main components of the ‘skills for jobs’ approach, which aims to 
support the EU’s workforce in taking full advantage of the green and digital transitions.  

2.1.  Improving skills intelligence: the foundation for up- and reskilling 

The first step to make sure people can acquire the skills they need for a current or 
future  job  is  up-to-date  information  on  skills  needs.  But  often  skills  intelligence 
comes too late to inform choices. Accessible, easily understandable, targeted and up-to-
date skills intelligence is necessary. Besides graduate tracking surveys and administrative 
data matching, artificial intelligence and big data analysis have a great potential. AI and 
big  data  can  be  applied  to  defining  new  job  profiles  in  different  sectors  based  on  the 
specific skill sets required. 

The EU Agency Cedefop has been piloting the use of big data analysis using online job 
advertisements  to  examine  the  skills  demanded  by  employers  at  regional  level30,  while 
the Blueprints for Sectoral Skills Cooperation have been looking into skills needs in key 
sectors.  Based  on  these  success  stories,  renewed  efforts  are  needed  to  further  deepen 
skills  intelligence,  considering  both  regional  and  sectoral  dimensions,  bring  it  together 
and  present  it  in  an  accessible  way,  also  for  education  and  training  institutions  and 
organisations.  

Action 2: Strengthening skills intelligence 

To strengthen and disseminate skills Intelligence, the Commission will: 

  Support the development of new and deepened skills intelligence, including at regional and 
sectoral  levels.  Building  upon  the  Cedefop  pilot  of  big  data  analysis,  a  permanent  online 
tool  will  be  created  where  ‘real-time’  information  will  be  published  so  that  all  interested 
stakeholders  can  use  it31.  Partnerships  to  use  data  from  private  job  portals  and  national 
skills intelligence will be explored. 

  Centralise and widely disseminate skills intelligence through the Pact for Skills, in synergy 

with the European Research Area. 

  Promote  the  participation  of  social  partners  in  labour  market  projections  and  the 

identification of training needs to develop skills intelligence  

  Encourage the use of skills intelligence by the public and private employment services and 
in  particular,  encourage  the  public  employment  services  (PES)  network  to  promote  the 
early  identification  of  skills  shortages  and  trends  linked  to  growing  job  opportunities, 
including  to  better  draw  on  the  potential  of  intra-EU  mobility  and  migration  from  third 
countries. 

30 Cedefop ‘Skills Ovate’, NUTS 2 level.  
31  The  online  tool  will  provide  granular  and  up-to-date  skills  intelligence,  especially  at  regional  and  sectoral  levels, 
providing a snapshot of labour market skills demand in real-time, that can be repeated within very short intervals and 
allows to identify trends in skills needs and detect newly emerging skill needs. 

8 

 
 
 
                                                 
  Present  skills  intelligence  information  tailored  to  individuals’  needs  in  Europass,  the  EU 
platform  for  people  to  manage  their  learning  and  careers.  This  will  assist  individuals  in 
their  study,  training  and  work  choices,  and  help  counsellors  and  mentors,  inter  alia  in 
Public Employment Services. 

2.2.  Fostering National Skills Strategies, the role of Employment Services and legal 

migration 

Skilling  for  a  job  calls  for  national  skills  strategies,  involving  all  stakeholders. 
National  skills  strategies,  designed  and  delivered  in  a  whole-of-government  approach, 
align efforts across employment, education, research, industry and regional development 
policies. They should involve social partners, civil society, education, training and labour 
market stakeholders and build on existing national skills strategies. 

In  light  of  the  ongoing  crisis  and  its  impact  on  unemployment,  in  particular  of  young 
people,  employment  services,  both  public  (PES)  and  private,  in  collaboration  with 
education and training public bodies and providers, as well as the national Digital Skills 
and Jobs coalitions, have a crucial contribution to make to national skills strategies. PES 
can play a bigger role in guiding people towards more and better up- and reskilling and 
increasing the labour market relevance of education and training systems. National skills 
strategies align national and regional policies and investment on commonly agreed major 
challenges.  They  also  orient  Member  States  in  the  projects  they  co-finance  with 
European funds.  

Having  the  right  skills  for  the  twin  transitions  and  responding  to  demographic 
challenges  can  also  be  tackled  with  a  more  strategic  approach  to  legal  migration, 
oriented  towards  better  attracting  and  keeping  talent.  Member  States  remain 
competent  to  decide  on  how  many  migrant  workers  they  admit  but  a  strong  EU 
framework  can  support  them  in  attracting  the  labour  migrants  that  the  EU  needs  and 
ensure  labour  migration  benefits  all.  Channelling  legal  migration  towards  regions  and 
occupations experiencing skills shortages requires better matching, and clear procedures. 
More needs to be done to improve the legal pathways into the EU and the recognition of 
third-country  nationals’  competences  on  the  EU  labour  market.  This  should  be  done  in 
partnership  with  third  countries  in  order  to  promote  both  development  and  mobility 
through increased investments in  skills. Finally,  it is  equally important  to make a more 
strategic use of the potential and the skills of third country migrants already residing in 
the  EU.  Despite  an  increasing  level  of  education,  they  still  face  on  average  lower 
qualification levels, which act as a barrier to long-term inclusion into the labour market. 

Action 3: EU support for strategic national upskilling action  

The  Commission  will  support  all  Member  States  to  prepare  holistic,  whole-of-government 
national  skills  strategies.  This  will  build  on  the  work  already  done  with  the  OECD  in  11 
Member  States  as  well  as  on  other  existing  skills  strategies  at  Member  State  level.  The 
Commission  will  support  the  establishment  or  review  of  strategies  where  needed  and  help 
monitor  progress  in  implementing  them.  The  Commission  will  encourage  breaking  of  gender 
and  other  discriminatory  stereotypes.  It  will  put  a  particular  focus  on  the  importance  of 
transversal  and  entrepreneurial  skills  as  well  as  skills  to  accompany  the  digital  and  green 
transitions such as those delivered through Science, Technology, Engineering and Mathematics 
(STEM) studies.  

The Commission will join forces with the European Network of Public Employment Services to 
develop peer learning events to spotlight skills needed on the labour market, in particular for the 

9 

 
 
 
unemployed  and  workers  in  short-time  work.  Activities  will  further  focus  on  stepping  up  the 
provision  of  guidance  services,  also  for  people  in  employment  and,  in  particular,  vulnerable 
groups  of  people,  and on  closing  skills  gaps,  notably  digital  skills  gaps.  Moreover,  exploiting 
fully the opportunities of cross-border cooperation will be explored. 

Through  the  forthcoming  Pact  on  Migration  and  Asylum,  the  Commission  will  aim  at 
enhancing  legal  pathways  to  the  EU,  including  through  a  relaunch  of  the  negotiations  on  the 
Blue Card Directive to attract highly skilled workers. The Pact will also provide credible offers 
of legal migration places as part of new talent partnerships with third countries and explore new 
legal migration instruments.  

Because  of  the  very  high  percentage  of  low-skilled  adults  in  one  Member  State,  its  National 
Skills  Strategy  has  shed  light  on  the  need  to  foster  a  culture  of  adult  learning  and  improve 
participation and coherence. As a result, Peter, who works in the hotel and tourism sector, has 
been  able  to  access  a  new  adult  vocational  training  programme  in  his  home  region.  The 
programme puts a new emphasis on the digital skills and transversal skills increasingly required 
among tourism sector workers. 

2.3.  Making vocational education and training (VET) future-proof 

Organisations providing education and training need to deliver relevant skills along 
the  entire  lifelong  learning  continuum.  From  the  very  first  days  of  European 
cooperation,  vocational  education  and  training  (VET)  has  been  at  the  core  of  the  EU 
project and has since also become part of the wider European cooperation framework for 
education  and  training  and  the  European  Education  Area.  Nowadays,  around  half  of 
young learners in the EU are VET learners, increasingly at higher levels.32 Europe needs 
agile,  resilient  and  future-proof  VET  systems,  which  can  support  young  people  to 
manage their entry to a changing labour market and ensure that adults access vocational 
programmes tailored to the twin green and digital transitions.  

Action 4: Proposal for a Council Recommendation on Vocational Education and Training 
for sustainable competitiveness, social fairness and resilience 

Today  the  Commission  adopts  a  proposal  for  a  Council  Recommendation  on  Vocational 
Education  and  Training  for  sustainable  competitiveness,  social  fairness  and  resilience.  The 
initiative:  

  Proposes a modernised EU policy vision for VET, with the view to equipping young people 
and adults with the skills to thrive in the labour market and supporting the green and digital 
transitions, including transversal skills, ensuring inclusiveness and equal opportunities, and 
establishing European VET as a global reference point for skills development; 

  Presents  principles  to  implement  this  vision,  including  a  stronger  focus  on  permeability 
with other education sectors, increased learning mobility and working in close partnership 
with  employers.  It  also  promotes  VET  as  an  attractive  choice  for  women  and  men  alike, 
and promotes inclusion of vulnerable groups; 

  Sets  objectives  for  VET  systems  to  enhance  the  availability  of  work-based  learning  and 

mobility opportunities and the employability of vocational graduates;  

  Puts forward a number of actions to be implemented at EU level to support VET reform in 
particular  on  enhancing  the  digital  readiness  of  VET  institutions,  including  for  VET 

32  VET  programmes  cut  across  different  levels  of  education  and  training.  In  absolute  figures,  the  largest  number  of 
VET learners (8.5 million learners) are enrolled in programmes at upper-secondary level. This compares to 1.5 million 
learners at post-secondary non-tertiary, 1.2 million learners at short-cycle tertiary, 1.2 million learners at bachelor and 
0.7  million  learners  at  master  level  vocational/professional  programmes.  Source:  Unesco-Oecd-Eurostat  (UOE)  joint 
data collection on education and training. 

10 

 
 
 
                                                 
teachers,  apprenticeships  and  Centres  of  Vocational  Excellence 
specialisation strategies and/or regional innovation and growth strategies. 33 

linked 

to  smart 

What is a Centre of Vocational Excellence? 

Many different types of  Centres  of Vocational Excellence  (CoVE) exist.  Notwithstanding this 
diversity,  two  broad  types  of  CoVEs  can  be  identified:  1.  Centres  that  are  ‘purpose  built’  or 
designated entities as part of national/regional arrangements for vocational excellence, and; 2. 
Centres that are individual VET providers, functioning for a region, sub-region or sector.34 They 
support entrepreneurial initiatives and act as knowledge and innovation hubs for companies, in 
particular  for  SMEs.  The  proposed  Recommendation  has  the  ambition  to  support  the 
establishment  of  50  Centres  of  Vocational  Excellence35  to  be  world-class  reference  points  for 
both initial training of young people as well as continuing up- and reskilling of adults36.  

For  example,  a  VET  centre  working  in  the  Cultural  and  Creative  Industries  (CCI)  sector, 
financed  by  Erasmus,  is  setting-up  a  network  of  knowledge  producers  (research  and  VET 
providers) and companies with partners in other countries. The network establishes innovation 
hubs to support sectoral SMEs, qualified professionals, and VET learners. It develops and rolls 
out a training programme focusing on entrepreneurship, problem solving, critical thinking and 
process/product innovation, as well as business incubators for VET learners and CCIs staff as 
well as trainers. 

2.4. Rolling out the European universities initiative and upskilling scientists 

Higher education is an essential vehicle to provide students with the skills they need 
in the future. Universities generate the advanced knowledge and skills that help society 
innovate to address its big challenges. They are empowering people with high-level skills 
that  allow  them  to  boost  their  professional,  social  and  personal  development.  The  fast-
changing  labour  market  and  societal  transitions  require  a  transformation  of  tertiary 
education institutions and to improve their alignment with the economic environment to 
ensure  that  graduates  have  the  education  and  skills  required  by  the  labour  market  and 
especially those that are needed for the twin transitions. 

Researchers are at the forefront of science and innovation and require a specific set 
of skills. More can be done to define this and the core skills they need for a successful 
career within and outside academia, also to foster mobility of scientists across Europe. 

Action 5: Rolling out the European Universities initiative and upskilling scientists 

To  roll  out  the  European  Universities,  the  Commission,  in  close  cooperation  with  the 
stakeholders and the Member States, will: 

 

engage  in  the  full  rollout  of  the  European  Universities  initiative  under  the  Erasmus 
programme (2021-2027) and Horizon Europe, including by removing obstacles to effective 
and deeper transnational cooperation between higher education institutions and deepening 
the  cooperation  with  economic  operators,  in  particular  to  foster  the  twin  transitions. 
European  Universities  will  set  standards  for  the  transformation  of  higher  education 
institutions  across  the  European  Education  Area  and  the  European  Research  Area,  also 

33  With  the  goal  of  supporting  excellence  and  internationalisation  of  VET,  European  vocational  core  profiles  would 
define a certain share of a common training content at European level. The profiles – as part of Europass platform and 
complemented, where possible, by vocational digital learning tools - have a potential to significantly facilitate mobility 
of learners and workers, automatic recognition of qualifications, and the development of joint vocational education and 
training curricula, qualifications and micro-credentials.  
34 
https://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=8250&furtherPubs=yes 
35 This ambition is based on the Commission’s proposal for the next Multi-annual Financial Framework. 
36 This action will be coordinated with the European Research Area.  

on  Mapping 

Commission 

Excellence: 

Vocational 

European 

Centres 

Study 

of 

of 

11 

 
 
 
                                                 
making lifelong learning and talent circulation a reality. 

 

explore  options  stemming  from  their  research  and  innovation  dimension  to  help  remove 
obstacles  to  effective  transnational  cooperation  between  higher  education  institutions, 
drawing on the lessons learnt during the pilot calls under Erasmus+ and Horizon 2020. The 
Commission  will  identify  areas  of  support  for  Member  State  action,  explore  a  concrete 
approach for a “European degree” and the feasibility of a European University statute (to 
tackle  cross-border  legal  issues)  and  for  a  European  Recognition  and  Quality  Assurance 
System. 

  work together with the European Institute for Innovation and Technology (EIT) and other 
European  Research  Area  relevant  initiatives  to  bring  together  leading  organisations  from 
business,  education  and  research,  in  particular  through  the  Knowledge  and  Innovation 
Communities  to  develop  innovative  teaching  and  learning,  train  the  next  generation  of 
innovators,  and  accompany  the  transition  of  higher  education  institutions  to  more 
entrepreneurial organisations.  

  Bring  academia  and  industry  together  by  testing  a  new  Talents-On-Demand  knowledge 
exchange  to  meet  companies’  research  and  innovation  needs,  complementing  university-
business collaboration. 

To  upskill  scientists,  in  close  cooperation  with  stakeholders  and  the  Member  States,  the 
Commission will: 

 

 

develop a European Competence Framework for researchers and support the development 
of a set of core skills for researchers. 

define a taxonomy of skills for researchers,  which  will allow the statistical  monitoring of 
brain circulation and agree with Member States on a set of indicators to allow monitoring 
and statistical analysis.  

 

develop open science and science management curricula for researchers. 

2.5.  Skills to accompany the green and digital transitions in jobs and beyond 

The  jobs  of  tomorrow  require  skills  for  the  twin  transitions.  The  green  transition 
requires investments in skills of people to increase the number of professionals who build 
and  master  green  technologies,  including  digital,  develop  green  products,  services  and 
business  models,  create  innovative  nature-based  solutions  and  help  minimise  the 
environmental  footprint  of  activities37.  In  addition,  Europe  will  only  become  a  climate 
neutral  continent,  a resource efficient  society and a circular economy  with  an informed 
population and workforce that understands how to think and act green.  

Equally,  achieving  a  human-centric  digital  transition  calls  for  a  step-change  in  digital 
skills. Already now, Europeans, men and women alike, need digital skills in life and at 
work:  in  some  job  categories,  more  than  90%  of  jobs  require  specific  types  of  digital 
skills38. The pandemic and its consequences on our lives and economies have highlighted 
the importance of digitalisation across all areas of the EU economy and society. Indeed, 
almost  4  in  10  employees  started  teleworking  during  the  containment  measures39. 
Moreover, 40% of new jobs were created in digitally intensive sectors between 2005 and 
201640.  However,  the  rapidly  growing  demand  for  digital  experts  cannot  be  met.  For 
example, there is a gap of 291,000 professionals in cybersecurity41.  

37 The roll out of the EU Bioeconomy Strategy is a good example towards this direction with actions enabling skills 
development, synergies with education and lifelong learning. 
38 ICT for work: Digital Skills in the Workplace: study carried out for the European Commission by Ecorys and Danish 
Technology Institute, 2017 
39 Eurofound, Living, working and Covid-19, April 2020. 
40 OECD (2019), Going Digital: Shaping Policies, Improving Lives, OECD Publishing, Paris. Cf. OECD Employment 
Outlook 2019: The Future of Work, box 2.1. 
41 ENISA, Cybersecurity skills development in the EU, March 2020. 

12 

 
 
                                                 
In addition, deployment of digital technologies across all economic sectors, including in 
non-tech sectors, will require a more digitally skilled workforce at all skills levels and at 
all  ages.  The  COVID-19  pandemic  and  resulting  containment  measures  were  a  stark 
reminder  that  Europe’s  workforce  -  and  more  widely  the  whole  population  -  need  to 
rapidly  increase  their  level  of  digital  skills.42  This  was  particularly  visible  in  the 
education sector, for students, teachers and trainers alike. 

Action 6: Skills to support the twin transitions 

The Commission will support the acquisition of skills for the green transition by: 

  Defining  a  taxonomy  of  skills  for  the  green  transition,  which  will  allow  the  statistical 

monitoring of the greening of our professions.  

  Agreeing with Member States a set of indicators to allow monitoring and statistical analysis 

of developments in green skills. 

  Developing  a  European  competence  framework  on  education  for  climate  change, 
environmental issues, clean energy transition and sustainable development, which will spell 
out the different levels of green competence. 

  Supporting  the  development  of  a  core  green  skills  set  for  the  labour  market  to  guide 
training across the economy  with a view to creating a generation of climate, environment 
and health conscious professionals and green economic operators. 

  Helping  to  integrate  environmental  and  climate  considerations  into  school,  higher 

education, vocational education and training, as well as professional training. 

The Commission will support digital skills for all, in particular by: 

  Updating the Digital Education Action Plan and presenting a vision  for improving digital 
literacy, skills and capacity at all levels of education and training and for all levels of digital 
skills (from low to advanced). Based on lessons learnt from the COVID-19 crisis in areas 
such as online learning, the Action Plan aims to support the development of robust digital 
competences  and  organisational  capabilities  in  education  and  training  systems  (including 
for distance-learning)  while  fully harnessing the potential  of emerging technologies, data, 
content, tools and platforms to make education and training fit for the digital age.  

 

Implementing  the  Digital  Europe  programme,  which  aims  to  build  the  strategic  digital 
capacities  of  the  EU,  strengthening  investments  in  supercomputing,  artificial  intelligence, 
cybersecurity and the development of advanced digital skills. 

  Supporting Digital Crash Courses for SMEs and “digital volunteers” programme to upskill 
the current workforce in digital areas, as already announced in the EU SME strategy. The 
Commission  will  also  support  and  interlink  SME  intermediaries  such  as  clusters,  the 
Enterprise  Europe  Network  and  Digital  Innovation  Hubs  to  help  upskill  staff  of  SMEs, 
including in the area of sustainability. 

  Supporting EU ICT-Jump-Start trainings to provide short-term intensive training to tackle 

ICT skills shortages, with a focus on gender-balanced participation. 

Anna manages a small logistics company. By participating in an ICT-Jump-Start training, she 
and her team have built the new skills they need to plan and execute climate-friendly delivery 
routes. 

STEM  (Science,  Technology,  Engineering  and  Mathematics)  skills  are  critical  to 
drive the  twin transitions.  In a time of  fast  technological innovation,  companies need 
people  with  high  level  skills  in  STEM  subjects.  Such  skills  are  necessary  to  use  new 

42 The Commission’s Digital Economy and Society Index (DESI) monitors on a yearly basis the level of basic as well 

as advanced digital skills in each Member State and in the EU.  

13 

 
 
 
                                                 
technologies, and a high level of STEM skills is crucial to foster innovation in cutting-
edge ICT areas such as AI or cybersecurity. However, only one in five young people in 
Europe graduates from STEM tertiary education, less than two million STEM graduates 
every  year43.  This  number  needs  to  increase,  which  could  be  achieved  by  promoting 
STEM pathways in particular among young women. Currently, only half as many women 
as men  are  graduating in  STEM fields  in  the  EU, although with  huge variations across 
Member  States44.  Enrolment  in  STEM  rather  than  other  higher  education  programmes 
often  depends  on  performance  in  secondary  schools45,  but  as  girls  outperform  boys  in 
digital literacy,46 it becomes clear that general social perceptions and attitudes play a role 
too47.  There  is  a  need  to  better  explain  to  young  learners,  and  notably  to  girls,  the 
opportunities offered by the choice of a STEM pathway. 

A significant number of people in Europe have  entrepreneurial aspirations, including 
an  increasing  trend  towards  social  entrepreneurship.  Both  foster  job  creation  and 
contribute to economic growth by increased competition, productivity and innovation. To 
make  these  aspirations  a  reality,  a  step  change  is  necessary  to  put  a  focus  on  the 
development  of  entrepreneurial  skills.  Career  guidance  systems  and  practices  should 
cover  properly 
social 
entrepreneurship  and  other  social  economy  business  models  can  also  help  increase  the 
appeal  of  and  interest  in  entrepreneurship.  Social  economy  being  a  pioneer  in  job 
creation,  for  example  linked  to  circular  economy,  also  supports  social  inclusion  and 
green transition.  

the  entrepreneurial  dimension.  Raising  awareness  of 

Beyond technical skills, the labour market increasingly needs transversal skills like 
working  together,  critical  thinking,  and  creative  problem  solving.  The  increasing 
influence of robots and algorithms on our labour markets further increases the need for 
uniquely  “human”  skills  such  as  empathy  and  adaptation  to  change  in  complex 
environments.  These  skills  are  also  especially  important  in  view  of  the  growing  silver 
and  care  economy  due  to  demographic  change  and  are  in  high  demand  on  the  labour 
market.  While  schools  have  a  role  to  play,  they  are  often  developed  outside  formal 
learning,  at  work  and  throughout  life.  It  can  be  difficult  to  identify,  recognise  and 
communicate those skills, this is why in the next phase of EU action on transversal skills, 
more needs to be done to capture them. 

Action 7: Increasing STEM graduates and fostering entrepreneurial and  
transversal skills 

To contribute to the required increase of STEM graduates the Commission will:  

 

 

 

raise  the  attractiveness  of  STEM  studies  and  careers,  with  focused  actions  to  attract  girls 
and women, and by encouraging a cross-disciplinary and innovative teaching and learning 
approach in schools, VET and higher education. 

as part of the European Education Area Communication, introduce activities for teachers, 
helping address the shortage of STEM teachers in EU countries and regions. 

foster  science  education  in  research  and  innovation  actions  such  as  through  the 
development  of  key  competence  and  assessment  framework;  dissemination  of  research 
results  on  science  education  in  partnership  with  the  European  SchoolNet;  and  use  of 
socially  empowered  portals  bringing  together  schools  from  different  European  countries, 
notably those that have experience with the open schooling culture. 

43 https://ec.europa.eu/eurostat/statistics-explained/index.php/Tertiary_education_statistics#Graduates 
44 Data on STEM tertiary graduates from Eurostat [educ_uoe_grad04]. 
45 OECD, Why don’t more girls choose STEM careers  
46 2018 International Computer and Information Literacy Study (ICILS) 
47 European Commission, 2016, Does the EU need more STEM graduates?, section 3.3.1.  

14 

 
 
                                                 
 

promote an integrated framework and learning continuum inter alia between secondary and 
in  partnership  with  business 
higher  education  systems,  education  and  business 
professionals, and further pursue open schooling and research-based methods, contests, and 
citizen science. 

To  foster  entrepreneurial  skills,  the  Commission  will  launch  a  European  Action  on 
Entrepreneurship Skills, which focuses on development of entrepreneurial mindsets and a more 
resilient workforce. The action will include:  

 

 

 

leveraging and connecting existing networks to provide a European entrepreneurial support 
for aspiring entrepreneurs,  focusing on  young  women entrepreneurs and  self-employment 
opportunities  in  the  digital  and  green  economy,  and  which  incorporates  a  knowledge 
platform of online resources on entrepreneurial skills and opportunities for collaboration48.  

support in funding programmes for entrepreneurial skills activities, European mobility for 
entrepreneurs  and  for  systematic  use  of  EntreComp:  the  European  Entrepreneurship 
Competence Framework.  

promotion of entrepreneurship skills at all levels of education and training - from primary 
and secondary school education, to VET and higher education to provide students with the 
knowledge and motivation to encourage entrepreneurial activity. 

This action will complement the Commission’s upcoming Action Plan for the Social Economy, 
which will inter alia promote entrepreneurial opportunities yielded by the social economy, such 
as helping local communities, striking local green deals and activating vulnerable groups.  

To foster transversal skills the Commission will: 

 

 

provide a strategic framework for the recognition of transversal skills to support validation 
practitioners in Europe. 

develop resources to support validation of transversal skills by employers and employment 
services.  This  will  include  exploration  of  EU-wide  online  courses  and  related  micro-
credentials  for  validation  practitioners,  and  establishment  of  a  network  of  validation 
pioneer organisations that can share best practices. 

The  annual  European  Union  Contest  for  Young  Scientists  (EUCYS)  is  one  of  Europe's 
premier events for showcasing young scientific talent. It triggers national science competitions 
(young  people  between  14  and  20  years  of  age)  and  bings  together  winners  to  compete  with 
their European counterparts. 

The  COVID-19  pandemic  and  the  related  containment  measures  have  underlined 
the importance of life skills and our capacity to adapt, manage change, and care for each 
other  as  a  community.  Resilience,  media  literacy,  civic  competence,  financial, 
environmental  and  health  literacy  are  key  in  this  context.  Open,  democratic  societies 
depend  on  active  citizens  who  can  discern  information  from  various  sources,  identify 
disinformation, take informed decisions, are resilient and act responsibly.  

The European Agenda for Adult Learning has facilitated European cooperation in this 
area for the last decade. More needs to be done to support people to acquire these skills, 
and to reinforce Upskilling Pathways49 for adults, in particular for those with lower levels 
of  skills  and  qualifications.  This  goes  beyond  skilling  for  a  job  but  also  includes 
voluntary work and older people who equally need new skills. 

48 The Gender Equality Strategy highlights the support for women’s entrepreneurship by EU cohesion policy. 
49 OJ C 484/01 24.12.2016 

15 

 
 
 
 
                                                 
Action 8: Skills for Life 

The  Commission, together  with Member States,  will  work  on new priorities for the European 
Agenda  for  Adult  Learning  to  complement  the  renewed  European  cooperation  framework  in 
education  and  training  and  to  support  the  achievement  of  United  Nations’  Sustainable 
Development  Goals.  It  will  aim  towards  building  comprehensive,  quality  and  inclusive  adult 
learning systems, which reach out to all, including seniors and in particular those most in need 
of  access  to  learning,  including  through  distance  and  online  learning.  It  will  prioritise  non-
formal,  life-wide  learning,  intergenerational,  intercultural  and  community  learning.  Local 
learning centres, libraries and the wider community and civil society will be supported to work 
together to motivate and enable adults to learn, thus supporting crisis resilience. 

Krzysztof, aged 74, enrolled in a digital skills course at his local library. This taught him how 
to  arrange  a  medical  appointment  and  buy  a  train  ticket  online.  His  new  passion  is  the  chat 
group  on  local  community  relations  in  which  he  is  currently  organising  a  campaign  on 
increasing green spaces. 

3. DEVELOPING  TOOLS  THAT  EMPOWER  PEOPLE  TO  BUILD 

SKILLS THROUGHOUT LIFE 

The  third  building  block  of  the  Skills  Agenda  shall  develop  the  necessary  tools  to 
empower  everyone,  whether  employed,  unemployed  or  inactive,  to  build  skills 
throughout their lives. Skills can help the individual to progress in his/her career and to 
manage job transitions successfully. It is only by instilling a genuine culture of lifelong 
learning that we can ensure a competitive economy and cohesive society and bring to life 
the right to quality and inclusive education, training and lifelong learning, as spelled out 
in Principle 1 of the European Pillar of Social Rights. 

3.1.Enabling everyone to participate in learning: Individual learning accounts 

Lack  of  time  for  training,  the  cost  of  training,  as  well  as  lack  of  awareness  of  the 
need for or the opportunities to train are important obstacles to up- and reskilling50. 
Direct  incentives  for  people  to  train,  such  as  individual  learning  accounts,  can  make 
lifelong learning a reality. They provide financing to adapt to evolving skills needs in a 
job,  or  to  change  occupation  or  sector,  including  moving  to  another  Member  State. 
Individual learning accounts could ensure that training entitlements are portable from job 
to  job  (or  job  to  unemployment  to  job)  and  their  introduction  could  be  combined  with 
significant  improvements  in  guidance  and  validation  systems  and  the  quality  and 
transparency of training offers. 

Where they exist, the financing of individual learning accounts differs from one country 
to another, in accordance with strategic choices made at national level. For example, in 
France they are financed primarily through an employers’ levy, whereas the Netherlands 
envisage using public financing. In exploring these accounts, the Commission will cover 
this core element, paying particular attention to ensuring that it is fit for SMEs. 

Individual learning accounts could also ensure that sufficient funds for training are 
available during economic downturns.  They allow individuals to  accumulate training 
entitlements  over  longer  periods,  so  that  they  can  use  them  during  periods  of  low 
economic  activity,  e.g.  during  short-time  work  periods  when  they  have  more  time  for 

50 Based on the data from the EU Adult Education Survey. 

16 

 
 
 
                                                 
training.  This  prevents  skills  depreciation  from  involuntary  inactivity  and  helps 
individuals acquire the skills they need for successful job transitions. 

Action 9: Initiative on individual learning accounts 

The Commission will assess how a possible European initiative on individual learning accounts 
can help close existing gaps in the access to training for working age adults and empower them 
to successfully manage labour market transitions. 

The  Commission  will  also  assess  which  enabling  services  and  other  factors  could  support 
individual learning accounts. This could include guidance, validation, and transparency on the 
quality of training opportunities, as well as educational or training leave provisions. In its work, 
the Commission will engage in broad consultations with Member States, social partners and all 
relevant stakeholders. 

3.2.  Valuing learning outcomes: Micro-credentials  

Empowering  workers  to  up-  and  reskill  throughout  their  entire  lives  also  means 
making sure that all learning experiences are properly valued. Increasingly, workers 
are attending short and tailored training and need to get recognition for that. Such courses 
can  be  offered  by  a  variety  of  education  and  training  providers  (e.g.  higher  education 
institutions,  VET  providers,  research  organisations,  industry,  social  partners,  Chambers 
of Commerce, Industry or Crafts, civil society organisations). 
Micro-credentials51 recognise the results of such short courses, often in the digital field, 
and  capture  their  results.  They  can  increase  permeability  between  different  education 
pathways/systems  and  improve  flexibility.  They  can  make  learning  more  adapted  to 
individual needs, thus fostering more innovative and inclusive approaches and facilitating 
access to the labour market and job transitions. They can also facilitate further learning, 
as  they  may  be  cumulated  to  obtain  a  larger  credential,  allowing  individuals  to 
accumulate learning outcomes over time and across institutions, sectors and borders and 
also online through e-learning schemes. However, to date no European standards exist to 
support the quality, transparency and take-up of micro-credentials across the EU. 

Action 10: A European approach to micro-credentials 

The Commission will propose a new initiative to support the quality, transparency and take-up 
of micro-credentials across the EU. In particular, it will:  

  Develop,  together  with  all  relevant  stakeholders  (public  or  private  education  and  training 
providers,  social  partners,  chambers  of  commerce,  employers)  European  standards  which 
address minimum requirements for quality and transparency. This will build trust in micro-
credentials and facilitate their portability and recognition across the EU. 

  Explore  the  inclusion  of  micro-credentials  in  qualifications  frameworks,  in  dialogue  with 

national qualification authorities. 

  Make  it  easier  for  individuals  to  store  and  showcase  to  employers  acquired  micro-

credentials through Europass and its Digital Credentials. 

This  initiative  builds,  among  others,  on  the  results  of  the  evaluation  of  the  2012  Council 
Recommendation  on  Validation  of  non-formal  and  informal  learning,  which  are  published  in 

51 Micro-credentials can be defined as documented statements that acknowledge a person’s learning outcomes, which 
are related to small volumes of learning and that for the user are made visible in a certificate, badge, or endorsement 
(issued in a digital or paper format). 

17 

 
 
 
 
                                                 
parallel with this Skills Agenda. 

Ivana is an experienced supermarket stock manager. A new software is opening up possibilities 
for less waste – if she and her staff can master its use. By following a short, targeted training 
module provided by her industry federation, she will be awarded a micro-credential as proof of 
her new skills – ready to put to use with her current or future employer. 

3.3.  Showcasing skills: the new Europass platform 

Once the individual has a certificate proving her or his skills, they need to be able to 
communicate  them  when  applying  for  a  job  or  further  learning.  New  technology 
opens up possibilities for communicating skills beyond the traditional CV and for linking 
people up with learning and job opportunities.  

Launched together with the Skills Agenda, the new Europass has been developed to 
become  the  EU’s  online  tool  to  help  people  effectively  communicate  their  skills  and 
qualifications and to proactively guide them to a job or learning opportunity. It offers free 
tools and information in all EU official languages for learners, workers and job seekers to 
manage each stage of their careers and learning.  

Action 11: New Europass platform 

The  new  Europass  platform  will  support  people  to  manage  their  careers  in  a  fast-changing 
labour market. With modernised  tools and information on learning and working in Europe the 
upgraded tool will: 

 

 

guide  users  to  assess  and  describe  their  skills  and  communicate  their  qualifications  and 
experience to training providers and employers, so they can take the next step in training or 
work; 

suggest  to  Europass  users  relevant  jobs  (via  EURES52  and  Euraxess53  jobs  portals)  and 
learning opportunities; 

  make use of skills intelligence to provide tailored information on skills trends and needs to 

users when planning a change of career or moving to another country; 

 

 

 

enable  education  and  training  institutions  to  issue  digital  diplomas  and  certificates  to 
learners in a European-wide digital format of ‘Europass Digital Credentials’, encouraging 
easier recognition;  

support a “fast track” to recognition, reducing administrative burden and decreasing fraud 
by  supporting  automatic  authentication  of  qualifications  by  employers  and  training 
providers; and 

support  legally  residing  migrants  to  showcase  their  skills  and  qualifications  and  facilitate 
their  recognition  through  better  information54.  The  EU  ‘Skills  Profile  Tool  for  Third 
Country  Nationals’  currently  used  in  reception  centres  and  by  organisations  guiding  and 
supporting  the  integration  of  asylum  seekers  and  refugees  will  be  linked  to  the  new 
Europass. 

52 EURES is the European Job Mobility Portal that facilitates the free movement of workers across the EU. It provides 
an  online  job  database  and  provides  a  wealth  of  information  on  intra-EU  mobility  for  job-seekers  and  employers. 
https://ec.europa.eu/eures/public/homepage 
53  EURAXESS  -  Researchers  in  Motion  https://euraxess.ec.europa.eu/  delivers  information  and  support  services  to 
professional  researchers,  supporting  researcher  mobility  and  career  development,  while  enhancing  scientific 
collaboration between Europe and the world. 
54 Legally residing migrants continue to face difficulties showcasing their skills and qualifications acquired outside the 
EU. Cf. JRC (2020) “Foreign Degrees, Region of Birth and Under-utilisation of Tertiary Education in the EU”. 

18 

 
 
 
                                                 
Daniela has been working in a variety of jobs as a car mechanic since leaving high school and 
is  unsure  what  to  do  next  with  her  career.  Thanks  to  the  new  Europass,  Daniela  can  create  a 
personal  Europass  profile  to  record  all  her  skills  and  experiences  and  store  her  diplomas  and 
certificates. Europass will suggest jobs and courses to Daniela and she can access information 
on guidance services near her, as well as information on studying and working across the EU. 

4. SETTING AMBITIOUS SKILLS OBJECTIVES  
With this Agenda, the Commission sets out a new and dynamic approach to skills policy 
at  EU  level,  aiming  to  guide  Member  States  and  help  drive  the  twin  transitions  and 
ensure  recovery  from  the  socio-economic  impact  of  the  COVID-19  pandemic.  To 
succeed, lifelong learning for all must become a reality in Europe, in each Member 
State and in each region. 

In  order  to  deliver,  and  bearing  in  mind  the  momentum  imposed  by  the  recovery 
and  the  accelerating  transitions,  the  Commission  proposes  to  set  quantitative 
objectives based on existing indicators55, to be monitored by 2025.  

We need to first of all significantly increase the share of adults participating in learning 
overall  –  only  this  guarantees  a  lifelong  learning  approach.  In  addition,  with  a  view  to 
making sure that the recovery and the twin transitions are socially fair, the Commission 
also  proposes distinct objectives on the participation in  learning of low-qualified adults 
and the unemployed. 

  By  2025,  120  million  adults  in  the  EU  should  participate  in  learning 
every year. This corresponds to 50% of the adult population and around 
540 million training activities for this group over the five-year period.  

  By  2025,  14  million  adults  with  low  qualifications  in  the  EU  should 
participate in learning every year. This corresponds to 30% of this group 
and around 60 million training activities for this group over the five-year 
period.  

Monitoring this indicator, in combination with the actions set out in this Communication, 
will also positively contribute to reducing the share of low-qualified adults which stands 
at 22% (2019) and where Europe falls behind its global competitors. 

  By 2025, 2 million jobseekers or one in five should have a recent learning 
experience. This corresponds to around 40 million learning activities for 
this group over the five-year period56.  

With  regards  to  the  content  of  the  learning,  a  wide  variety  of  skills  will be  required  to 
ensure  recovery  and  the  twin  transitions  are  a  success.  Exacerbated  by  the  COVID-19 
induced  containment  measures,  digital  skills  are  of  critical  value  for  working,  learning 
and  social  interaction.  This  is  why  the  fourth  objective  to  be  monitored  is  the  share  of 
adults with at least basic digital skills. 

  By 2025, 230 million adults should have at least basic digital skills, which 

covers 70% of the adult population in the EU.  

The green transition needs to be just and has to pay special attention to those workers and 
regions  particularly  affected.  Skills  are  crucial  for  this  endeavour.  At  this  stage,  no 

55  Available  indicators  often  do  not  allow  capturing  the  qualitative  aspect  of  training.  Evidently,  this  Skills  Agenda 
drives a step-change also in qualitative terms by pushing to the front the principle of ‘skilling for a job’. 
56 Assuming an average duration of the learning activities of 3 months. 

19 

 
 
 
                                                 
quantitative  indicators  on  green  skills  exist.  The  Commission  will  develop  such 
indicators (Action 6). 

Member  States,  education  and  training  providers,  social  partners,  businesses,  learners’ 
representatives and all relevant stakeholders are called upon to discuss in the context of 
the European Semester of economic policy coordination how to achieve these objectives.  

Progress towards the objectives will be regularly monitored in the European 
Semester.57 It will be published in the annual Joint Employment Report and serve as the 
analytical basis for more focused country specific recommendations on skills, education 
and training. Whenever possible, the Commission will monitor the objectives by gender, 
geographical areas and for vulnerable groups in addition to the low-qualified and 
unemployed, such as persons with disabilities. 

Indicators 

Objectives 
for 2025 

Current level (latest 
year available) 

Increase (in 
%) 

Participation of adults aged 25-64 in 
learning during the last 12 months 
(in %)58 

Participation of low-qualified adults 25-
64 in learning during the last 12 months 
(in %)59 

Share of unemployed adults aged 25-64 
with a recent learning experience (in 
%)60 

Share of adults aged 16-74 having at 
least basic digital skills (in %)61 

50% 

38% (2016) 

+32% 

30% 

18% (2016) 

+67% 

20% 

11% (2019) 

+82% 

70% 

56% (2019) 

+25% 

Moreover, the learning mobility opportunities for VET learners all across the EU should 
be  further  boosted,  as  proposed  in  the  new  Erasmus+  and  announced  by  the  Council 
Recommendation on VET, where the Commission proposes to increase EU mobility of 
VET learners from 6% to 8%.  

57  The  four  indicators  link  in  with  the  Social  Scoreboard  that  accompanies  the  European  Pillar  of  Social  Rights.  In 
addition to the two indicators on adult participation in learning during the last 12 months and basic digital skills, which 
are  already  in  the  Social  Scoreboard,  two  more  indicators  on  the  participation  in  education  and  training  of  low-
qualified and unemployed adults are proposed. These indicators are also well recognised, have been endorsed by the 
Employment Committee in 2018 (Joint Employment Report 2019) and have been used in the European Semester ever 
since. The indicator on digital skills is the same used in the Digital Economy and Society Index (DESI). 
58  The  indicator  shows  the  share  of  adults  aged  25-64  who  have  participated  in  at  least  one  formal  or  non-formal 
education  or  training  activity  (but  excluding  guided-on-the-job  training  activities)  during  the  12  months  before  the 
survey interview. The current source of the data for this indicator is the EU Adult Education Survey. As of 2022, the 
data for this indicator will come from the EU Labour Force Survey. 
59 The definition and sources of the indicator are similar to the first indicator on adult participation in learning. The 
main  difference  is  the  focus  on low-qualified  adults, i.e.  those  adults  who  have  achieved  at  most  a  lower  secondary 
qualification (or below) as their highest formal educational qualification. Thus, the indicator measures the share of low-
qualified  adults  who  report  having  participated  in  formal  or  non-formal  education  and  training  over  a  period  of  12 
months. 
60  The  data  is  available  from  the  EU  Labour  Force  Survey.  ‘Recent  learning  experience’  refers  to  participation  in 
formal or non-formal education and training during the last 4 weeks. 
61  The  source  of  the  data  for  this  indicator  is  the  EU  Community  survey  on  ICT  usage  in  households  and  by 
individuals. 

20 

 
 
 
                                                 
5. MAKING IT HAPPEN: UNLOCKING INVESTMENT 
Meeting  these  ambitious  objectives  by  2025  requires  a  considerable  mobilisation  of 
private and public investment in skills. The overarching adult learning participation goal 
would come at an estimated additional investment of EUR 48 billion annually.62  

Beyond  that,  implementing  the  Skills  Agenda  will  also  require  additional  funding  to 
ensure the roll-out of the various actions at the EU, national, regional and local levels. 

5.1.EU budget to support and unlock investment in human capital63 

The Commission’s proposal for Next Generation EU provides significant resources 
as  part  of  a  major  budgetary  initiative  to  tackle  the  economic  and  social 
consequences of the crisis. The Commission will ensure that its instruments are put to 
good  use  to  support  and  unlock  investment  in  human  capital,  promoting  gender 
equality  and  inclusiveness.  Member  States  will  be  encouraged  to  use  EU  financial 
resources to implement national schemes for the re- and upskilling of the workforce. 

In the short term, REACT-EU, financed by Next Generation EU and the proposal for 
an  adapted  current  financial  framework  for  2020,  will  endow  cohesion  policy  funding 
with  EUR 55 billion for 2020-22. This  will allow the European Social Fund  to  direct 
additional  funding  towards  skilling  opportunities  accompanying  the  green  and  digital 
transitions. 

Moreover, the Recovery and Resilience Facility, powered by EUR 560 billion in grants 
and loans, provides Member States  with  ample  opportunities to  fund up- and reskilling 
actions.  The  Commission  proposal  for  country  specific  recommendations  in  2020 
focused  on  the  immediate  measures  to  mitigate  the  socio-economic  impact  of  the 
pandemic  and  identified  skills,  education  and  training  as  a  short-term  priority  for  22 
Member States. The national recovery and resilience plans that Member States will 
prepare to access funding from this Facility should reflect skills as a priority for the 
programming. 

Throughout  the  2021-2027  period,  the  European  Social  Fund  Plus,  with  a  proposed 
budget of EUR 86 billion, will remain an important funding source for national up- and 
reskilling activities.  

In  addition,  the  proposed  EUR  24.6  billion  of  Erasmus+  will  contribute  to  skills 
development  and  fund  some  of  the  actions  outlined  above,  such  as  the  European 
Universities,  the  Centres  of  Vocational  Excellence  and  the  Blueprints  for  sectoral 
cooperation on skills. Moreover, Erasmus+ can support a substantial increase in physical 
and virtual learning mobility across the EU which opens up new learning opportunities 
that may not be accessible at home.  

Horizon  Europe  will  play  a  key  role  in  the  recovery,  notably  the  twin  transitions, 
industry  and  SMEs,  but  also  by  supporting  universities,  researchers  and  underpinning 
brain  circulation  and mobility. The new  Digital Europe Programme will invest in the 
development  of  academic  offer  in  digital  areas,  as  well  as  specialised  training 
opportunities  in  fields  like  data,  cybersecurity  and  artificial  intelligence,  to  address  the 
current shortages of these professionals. 

62  This  estimate  is  based  on  the  number  of  additional  adult  learners  needed  in  each  country  to  reach  the  50% 
participation mark (compared to current participation levels), combined with the country-specific lump-sums per hour 
of employee training for reimbursements from the European Social Fund from the Commission Delegated Regulation 
2019/2170 and assuming an education or training duration of 100 hours per year.  
63 Amounts in this section are mentioned in 2018 prices. 

21 

 
 
                                                 
Other resources can directly support up- and reskilling the European workforce. Member 
States’ investments in ‘high social impact infrastructure’ for education and training, 
including  digital  infrastructure,  can  be  further  supported  by  the  European  Regional 
Development  Fund  and  by  InvestEU,  which  under  its  Social  Investment  and  Skills 
window  (with  a  proposed  budget  guarantee  of  EUR  3.6  billion)  can  support,  amongst 
others, investments in critical infrastructure in the area of education and training.  

In the context of the green transition, the Commission identified investment in skills for a 
green transition as a priority for all 27 Member States in the use of the Just Transition 
Fund and its proposed total budget of EUR 40 billion. The public sector loan facility, 
under  the  Just  Transition  Mechanism,  expected  to  mobilise  between  EUR  25  and  30 
billion,  can  also  invest  in  skills64.  The  ceiling  of  the  European  Globalisation 
Adjustment Fund has been proposed to be doubled in the future financial framework to 
support upskilling for workers  and the self-employed who  are made redundant  in  mass 
industrial  restructuring.  Other  programmes,  such  as  the  Modernisation  Fund  will  also 
fund  up-  and  reskilling  programmes  to  help  workers  in  regions  and  sectors  affected  by 
the green transition.  

The Commission urges Member States to step up support to up- and 
reskilling, seize the unique opportunity to mobilise tens of billions of 
Euros of the future EU budget to this effect and prioritise operations 
mentioned below, notably reforms that improve the offer and take-up 
of schemes to build skills.  

The Commission will actively engage with national authorities and other 
stakeholders  so as  to  ensure that adequate EU resources are allocated to 
support  the  various  aspects  of  the  Skills  Agenda  set  out  in  this 
Communication.  In  particular,  the  Commission  will  encourage  and 
support  Member  States  to  prioritise  investments  in  skills  under  the 
Recovery  and  Resilience  Facility  and  monitor  progress  through  the 
European Semester.  

A  non-exhaustive  overview  of  operations  that  can  be  supported  with  the  future  EU 
budget to deliver on the Skills Agenda, including on the Pact for Skills, in particular by 
making use of the resources of the Next Generation EU, includes:  

Investment in inter-company training centres, where companies in a value chain can pool resources 
for tailored staff training. 

Full roll-out of upscaled Blueprints for sectoral cooperation on skills at national and regional levels.  

Development  and  operation  of  skills  forecasting  systems,  providing  information  on  upskilling  and 
reskilling needs on a national/regional and sectoral level, including for the twin transitions, covering 
all phases of information collection, analysis and dissemination. 

Development  and  implementation  of  National  Skills  Strategies,  designed  and  delivered  in  a  cross-
government  approach,  accompanying  the  twin  transitions,  aligning  efforts  across  a  range  of  policies 
and  with  strong  stakeholder  involvement  including  social  partners,  civil  society  and  labour  market 
actors and the education and training sector. 

64 Proposal for a Regulation on the public sector loan facility under the Just Transition Mechanism, COM(2020) 453 
final. 

22 

 
 
 
 
                                                 
Implementing  VET  and  apprenticeships  reforms,  which  may  include  investments  in  curricula 
reforms  for  increased  labour  market  relevance,  mainstreaming  of  green  and  digital  skills,  flexibility 
and modularisation, expansion of higher VET programmes, setting up quality assurance and graduate 
tracking  systems,  training  of  teachers  and  trainers  in  VET,  supporting  mobility  of  VET  learners, 
teachers  and  trainers  and  setting  up  Centres  of  Vocational  Excellence  linked  to  smart  specialisation 
strategies and/or regional innovation and growth strategies. 

Direct  subsidies  for  apprentices  in  SMEs  including  remuneration,  recruitment  bonuses  and 
temporary  social  contributions  coverage  (up  to  12  months),  as  well  as  trainers’  wages  and/or  their 
social contributions to stabilise and increase the supply of quality and effective apprenticeships. 

Investments in digital learning equipment and technologies and state of the art industry equipment 
and technologies for education and training providers.  

Incentives for the development of digital learning content and core curricula modules in line with 
labour market needs, focusing on digital and green skills, including through on-line training platforms. 

Design  and  delivery  of  short  courses  to  reskill  workers  towards  emerging  jobs  and  new  skills 
requirements  related  to  the  green  and  digital  transitions,  including  the  set-up  of  ICT-Jump-Start 
trainings and the Digital Crash courses for SMEs to provide short-term intensive training to tackle 
ICT skills shortages. 

Design and delivery of master courses to train digital experts in advanced digital skills necessary 
for  the  digital  transformation  and  master  courses  to  train  experts  in  green  skills  for  the  green 
economy. 

Regional  and  local  entrepreneurial  skills  hubs  to  support  start-ups,  entrepreneurial  employees  and 
innovators. 

Investment in the quality, equity and labour market relevance of education and training systems 
to  ensure  that  people  are  equipped  with  the  key  competences  needed  in  the  labour  market  and  in 
society. 

Investment in community adult learning centres, where people of all ages can learn and exchange, 
building a resilient and cohesive society.  

Set-up, experimentation and operation of a scheme to provide individual learning accounts. 

Incentives  to  support  participation  in  training,  e.g.  study  loans/grants  for  adults,  financing  of 
training leaves, training allowances for the unemployed. 

Support  training  programmes  to  accompany  short-time  work  schemes  protecting  employees  and 
self-employed in particular against the risk of unemployment. 

5.2.Improving the enabling framework to unlock Member States’ and private 

investments in skills  

EU  funds  can  act  as  a  catalyst,  but  investment  in  skills  needs  to  be  financed  by  other 
public  and  private  investments.  This  pays  off:  1  euro  invested  in  up-  and  reskilling 
returns at least 2 euros in revenues or savings65. To this end, and in addition to concrete 
funding opportunities through EU programmes, the Commission will carry out a number 
of actions to support public and private investment in skills and human capital. 

Action 12: Improving the enabling framework to unlock Member States’ and private 
investments in skills 

To incentivise investment in skills, the Commission will: 

 

pursue  the  question  of  how  fiscal  frameworks  can  contribute  to  building  more  resilient 
societies,  supporting  reforms  and  investment  in  human  capital  and  skills  as  part  of  the 

65 “A Strategist’s Guide to Upskilling”, PwC, 15 July 2019. 

23 

 
 
 
                                                 
ongoing public debate initiated by the Commission’s review of economic governance and 
with a view to the recovery, while safeguarding fiscal sustainability; 

 

seek to enhance reporting on human capital by large companies, including on the skills 
development  of  employees.  Furthermore,  the  Commission  will  also  study  other  ways  of 
increasing  transparency  of  companies’  expenditure  on  human  capital,  for  example  by 
presenting them more visibly in their accounts; 

  work on statistics on public and private investment in adult skills together with national 
statistical offices, including by developing  ‘satellite accounts’ to improve transparency of 
reporting on skills in national accounts and budgets; 

 

assess  innovative  financing  mechanisms  that  can  trigger  additional  investments  in 
skills.  The  proposed  enhanced  InvestEU  foresees  the  possibility  to  finance  skills  and 
education and training activities,  including through social outcome contracting pilots as  a 
way  of  leveraging  private  investment  for  social  goals.  Together  with  the  European 
Investment Bank Group and other implementing partners, the  Commission will, therefore, 
explore  the  potential  of  various  kinds  of  social  outcome  contract  schemes,  for  example 
social impact bonds, to boost investment in skills. 

What is a social impact bond? 

A  social  impact  bond  is  an  innovative  financing  mechanism  in  which  governments  enter  into 
agreements with social service providers, such as social enterprises or non-profit organisations, 
and  with  investors  that  pay  for  the  delivery  of  pre-defined  social  outcomes,  for  example  on 
skills66.  The  objective  is  to  finance  social  services.  In  particular  those  focused  on  innovative 
solutions to social challenges or prevention measures. 

Through  this  mechanism,  the  government  or  an  intermediary  raises  funds  from  private-sector 
investors,  charities  or  foundations.  These  funds  are  distributed  to  service  providers  to  cover 
their operating costs. If the measurable outcomes agreed upfront are achieved, the government 
proceeds with payments to the intermediary organisation or directly to the investors. 

66 Understanding Social Impact Bonds, OECD Working Paper 2016, pg. 4. 

24 

 
 
                                                 
CONCLUSION 
Now is the time to act. With this call to action, the Commission aims to put skills at the 
heart  of  the  European  policy  agenda  for  the  next  5  years  to  make  the  right  to  lifelong 
learning a reality and implement Principle 1 of the European Pillar of Social Rights. The 
recovery  of  our  economy,  strengthening  Europe’s  global  competitiveness  and  pressing 
forward with the twin green and digital transitions, requires a bold skills policy. For this 
the Commission will: 

  propose to businesses, social partners and other stakeholders to WORK TOGETHER, 

under an ambitious Pact for Skills; 

  develop  SKILLS  FOR  JOBS,  thanks  to  a  forward-looking  approach  to  skills 
development, based on sound skills intelligence and modern and dynamic education 
and training provision that links directly with labour market and societal needs; 

  EMPOWER PEOPLE to build up their skills by developing innovative tools, making 

learning pathways more flexible and accessible. 

To  bring  this  ambition  to  life,  the  Commission  proposes  ambitious  quantitative 
objectives  that  will  allow  to  measure  progress  on  an  annual  basis.  The  Commission  is 
calling on Member States and all stakeholders to help bring about a skills revolution and 
make full use of the unprecedented opportunities offered by Next Generation EU.  

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