COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The Union of Skills
Date: 2025-03-05
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: adult education, competitiveness, continuing vocational training, education policy, labour force, labour market, promotion of the European idea, recognition of vocational training qualifications, skilled worker, updating of skills

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 5.3.2025  COM(2025) 90 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE EUROPEAN COUNCIL, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The Union of Skills  
 
 
The Union of Skills 

Europe’s competitive strength lies in its people. Our human capital is key to the EU’s prosperity, 
its economic resilience and unique social market economy. It is key toincreasing our productivity 
growth,  making  our  industries  more  competitive  and  innovative,  to  attracting  additional 
investments, and to a a dynamic single market and enhanced economic security. Putting people 
first and investing in skills pays off many times over.  In the context of the global competition for 
talent,  and  a  shrinking  working  age  population  in  the  EU,  Europe’s  competitiveness  relies  on 
future-oriented skills, contributing to economic social and territorial cohesion. Human capital is 
also essential to promote preparedness and security in the present geopolitical situation. 

To be competitive and prepared for the future, the EU needs to support and prepare its people with 
the skills and competences needed for success in learning, work, and life, as highlighted by the 
Competitiveness  Compass  for  the  EU 1 .  Europe’s  social  market  economy,  with  its  strong 
foundations in education, training, research, innovation and democracy, can serve as a solid base. 

1.  The problem: the need for more and better skills 

The Union of Skills2 aims to support the development of quality, inclusive and adaptable education, 
training and skills systems to increase the EU’s competitiveness. Enhanced skills intelligence at 
EU level will be of key importance in this context, for effective and targeted policies.  

Skills shortages and gaps, insufficient transformation speed and fragmented and inefficient 
governance are hampering the EU’s competitiveness, as underlined by the Draghi3, Letta4 and 
Niinistö 5  reports.  They  are  are  a  barrier  to  productivity  growth  and  innovation,  hindering 
decarbonisation and digitalisation efforts. 

1.1 Skills shortages and gaps  

Europe does not produce enough skilled graduates from higher education and vocational education 
and training, nor does it enable enough people to upskill or reskill throughout their working lives. 
Moreover, in the global competition for talent, Europe struggles to be an attractive destination. 
Skill shortages are often exacerbated in less developed, remote and outermost regions.  Persons 
with disabilities or with a migrant background often encounter additional obstacles in developing 
their skills, resulting in untapped potential in the EU labour force.  

1 Communication from the Commission to the European Parliament, the European Council, the Council, the European 
Economic and Social Committee and the Committee of the Regions, A Competitiveness Compass for the EU, COM 
(2025) 30 final. 
2 Skills should be understood in a broad sense through the entire communication. It encompasses skills, knowledge 
and competences for life, well beyond the skills needed for the labour market. 
3 The future of European Competitiveness, report by Mario Draghi. 
4 Much more than a market – Speed, Security, Solidarity, Empowering the Single Market to deliver a sustainable future 
and prosperity for all EU Citizens, report by Enrico Letta. 
5 Safer Together: Strengthening Europe’s Civilian and Military Preparedness and Readiness, Report by Sauli Niinistö, 
former  President  of  the  Republic  of  Finland,  in  his  capacity  as  Special  Adviser  to  the  President  of  the  European 
Commission. 

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Starting  at  school:  Europe  is  lagging  behind  in  basic  skills.  15-year  olds’  performance  in 
mathematics, reading and science has dropped, continuing a downward trend, as shown by recent 
PISA data 6. Similarly, nearly half of young people in Europe are lacking basic digital skills.  

Source:  European  Commission  2024:  https://op.europa.eu/en/publication-detail/-/publication/d9d9adad-c71b-11ee-
95d9-01aa75ed71a1/language-en 

In vocational education and training: Vocational education and training (VET) has traditionally 
been a path towards quality jobs and fulfilling careers in middle skilled occupations. Vocational 
qualifications are in high demand, notably where acute labour shortages persist7. Green skills are 
among  many  much  needed  skills  developed  through  VET,  and  are  key  for  a  successful  green 
transition and circular economy. Overall, out of the most widespread shortages occupations in the 
EU,  two  thirds  are  crafts  occupations  that  typically  require  vocational  education  and  training8. 
Shortages in these fields, and other key sectors like agriculture and fisheries,  may even worsen, 
as the share of young workers (aged under 30) in these occupations is low, rendering the need for 
generational renewal more acute. 

In  higher  education:  More  than  half  of  new  job  openings  by  2035  will  be  in  highly  skilled 
occupations. Yet, Europe does not produce enough highly qualified talent. Europe needs to invest 
and support the pooling of  resources in higher education to increase  access to innovation, cutting-
edge knowledge and high-level skills, including through joint study programmes within alliances 
of higher education institution, such as European Universities alliances. 

Continuing at adult level: upskilling and reskilling will be essential throughout people’s lives and 
careers, yet one in five adults struggles to read and write9, and less than 40% of the adult population 
take part in education or training10, far below the 60% target set for 2030. This share is much lower 

6 Report of PISA 2022 study outlines worsening educational performance and deeper inequality 
7  EURES  Report  on  labour  shortages  and  surpluses  2023:  https://www.ela.europa.eu/en/publications/labour-
shortages-and-surpluses-europe-2023 
8 Increasing skills gaps are also a problem to be addressed for preserving cultural heritage. 
9  Do  Adults  Have  the  Skills  They  Need  to  Thrive  in  a  Changing  World?,  Survey  of  Adult  Skills  2023,  OECD: 
https://www.oecd.org/en/publications/do-adults-have-the-skills-they-need-to-thrive-in-a-changing-world_b263dc5d-
en.html 
10 Adult Learning Statistics, Eurostat: https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=Adult_learning_statistics 

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among low-skilled adults (18.4%). Almost half the adult population does not have basic digital 
skills despite more than 90% of jobs requiring them11. Time constraints, financial considerations, 
care responsibilities and motivation are some of the obstacles preventing adults from taking part 
in further learning. 

Gender gap: While overall more young women than men graduate from higher education, there 
are  almost  twice  as  many  men  than  women  studying  science,  technology,  engineering  and 
mathematics  (STEM),  both  in  higher  education  and  in  vocational  education  and  training.  This 
impacts  strongly  on  gender  segregation  in  the  labour  market  and  restricts  the  EU’s  innovation 
potential.  

Financial  and  entrepreneurial  skills  gap:  Europeans  lack  the  necessary  financial  and 
entrepreneurial skills to invest more and to launch and grow successful startups. This significantly 
limits the innovation and growth potential of the EU.     

Global competition for talent: The EU is less attractive to talented third country nationals  than 
other OECD members such as Canada, the US and Australia12. Moreover, some of the EU’s top 
talent finds better opportunities overseas for starting-up or for excelling in academia. 

Acute skills gaps and risk of labour shortages in sectors in rapid transformation and during crises: 
Europe faces  skills  gaps and  potential shortages in  critical  sectors  in  the event  of disasters and 
crises. There is not enough mapping of workforce needs, training of new labour force segments or 
sufficient inflows of skilled workers.  

1.2 Transformation speed gap 

Education and training systems in Europe are lagging the rapid technological transformations and 
the changing  skills needed to  take forward the decarbonisation  of the economy13 and  to  reduce 
dependencies in strategic sectors.  

Europe  faces  a  growing  challenge  in  meeting  the  demand  for  skilled  talent  in  STEM  fields, 
especially in strategic sectors like clean and circular technologies, digital technologies, aerospace, 
and defence, including in traditonal sectors increasingly relying on digital tools requiring STEM 
skills. While we produce highly qualified professionals, their quantity is insufficient to bridge the 
gaps. Nearly four out of five SMEs in the EU struggle to find workers with the necessary skillsets 
- with start-ups and scale-ups severely impacted - particularly in breakthrough technologies such 
as  AI,  semi-conductors  and  quantum  computing.  These  shortages  impact  all  sectors,  including 
transport, food, and energy, limiting economic growth and stifling innovation.  

The decline in basic skills among 15-year-olds is closely linked to the lack of specialist teachers 
in  mathematics  and  science,  highlighting  the  urgent  need  to  attract  teachers  and  trainers  and 
supporting them better through continuous professional development in these critical areas. Also, 
as younger generations’ needs and expectations evolve, a fresh vision for education and career 
pathways may be necessary to align with the changing landscape of work and innovation. 

11 The State of the Digital Decade 2024 report highlights that only 55.6% of EU’s population has at least basic digital 
skills (compared to the target of 80%) and at the current pace, the number of ICT specialists will reach just 12 million 
by 2030, well below the  20 million target. 
12 Talent attractiveness 2023, OECD: https://www.oecd.org/en/data/tools/talent-attractiveness-2023.html 
13 The “EU industrial action plan for the automotive sector” aims to tackle challenges on innovation and leadership in 
future technologies, clean transition and decarbonisation and the skills needed to achieve them. 

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Equally important is to equip people – in all corners of Europe and of all generations - with the 
skills  needed  to  address  pressing  societal  challenges  –  such  as  climate  change,  pressures  on 
democratic  institutions  and  threats  to  our  internal  security,  including  cybersecurity  and  hybrid 
threats – while also ensuring they can seize the opportunities presented by the green and digital 
transition .  

Ultimately,  Europe  must  better  utilise  the  existing  skills  by  improving  the  recognition  of 
qualifications across borders and acknowledging competencies gained outside formal education. 
Many individuals struggle to have their skills recognised when moving within the EU or arriving 
from third countries, leading to underutilised talent.  

1.3 Fragmented governance and skills intelligence 

Skills policies are closely interlinked with education, labour, economic and financial policy, and 
social inclusion. However, these domains are often governed by different ministries or departments, 
both at national and regional levels, each with its own priorities. 

Moreover,  a  multitude  of  stakeholders  address  skills  from  a  variety  of  perspectives  in  an 
insufficiently coordinated manner: education and training systems, industry, public employment 
services, social partners, civil society.     

This fragmentation hampers smart investment and does not allow for adequate skills intelligence.  

Insufficient  consolidation,  lack  of  foresight  and  of  effective  collaboration  between  different 
agencies with expertise on skills intelligence makes it difficult to match skills future demand and 
supply, including with a view to facilitate legal migration.  

While Member States’ efforts on education and skills have increased, the challenges are too 
great and urgent to be tackled by Member States alone. Action at EU level can accelerate the 
skills  and  education  transformation  that  Europe  needs  to  tackle  skills  gaps,  speed  gaps  and 
decision-making  gaps.  It  is  also  paramount  to  closely  associate  candidate  countries,  as  well  as 
potential candidates and neighbourhood countries, to the reforms and to relevant initiatives laid 
out in the Union of Skills, as these countries also face similar challenges. 

These are the three reasons why Europe needs a radical step change in ambition and action. The 
Union of Skills is an ambitious strategy to deliver education and skilling in the EU, supported by 
a new cooperation model to bring forward bold solutions, based on a clear set of objectives (section 
2), key actions (section 3), financial means (section 4), and more effective governance (section 5).  

2.  The Union of Skills: objectives 

The  Union  of  Skills  aims  to  ensure  that  everyone  in  Europe,  no  matter  where  they  are,  is 
empowered to build solid skills foundations and engage in lifelong upskilling and reskilling, 
in line with the European Pillar of Social Rights. Its goal is to support European education and 
training  systems  to  provide  equal  opportunities  for  everyone,  including  all  young  people, 
regardless  of  their  background  and  place  of  residence,  to  access  education,  lifelong  learning, 
quality jobs and navigate transitions and crises. Stronger educational foundations and skills also 
underpin EU values such as democracy, human rights, solidarity, social inclusion and diversity, 
helping people become more resilient to mis- and disinformation, radicalisation and recruitment 
into crime and empowering them to contribute to a greener, fairer, and more cohesive Europe.  

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The second objective is to support companies to be competitive and resilient, making it easier for 
employers and particularly for SMEsto find people with the skills they need to create sustainable 
growth and quality jobs. It is also a call for companies to invest in upskilling and reskilling their 
workers of all generations  to adapt to ever-changing challenges and opportunities. At the same 
time,  it  recognises  that  companies  -  especially  SMEs  and  start-ups  /scale-ups  -  need  the  right 
incentives and support to make these investments feasible.  

Finally, the Union of Skills will work to make skills and qualifications - regardless of where 
they are acquired in Europe - transparent, trusted, and recognised across the single market, 
allowing  individuals  to  exercise  their  right  to  free  movement  and  enabling  employers,  notably 
SMEs, to recruit effectively across borders. It is also a call to Member States to work towards fast 
recognition of skills and qualifications acquired outside the EU. 

3.  Key strands of the Union of Skills  

To achieve the objectives set out above, the Union of Skills will: 

-  Build  skills  for  quality  jobs  and  lives  through  a  strong  educational  foundation,  with  an 

inclusive lifelong learning approach.   

-  Upskill and reskill an agile workforce mastering the digital and clean transition, notably those 

with lower and middle skills.  

-  Circulate skills with the free movement of people across the EU, unlocking the single market’s 

full potential. 

-  Attract, develop and retain talent.  

Building 
skills  
for quality 
lives and jobs 

Upskilling 
and 
reskilling  
for the digital &  
green transition 

Circulating 
skills  
across the EU 
for 
competitiveness 

Attracting, 
developing  
and retaining 
talent  
for Europe’s future 

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The Union of Skills will build on actions taken already under the European Education Area14, 
the European Skills Agenda15 and the European Research Area. On this basis, the Commission 
will engage with education and training, employment and labour market actors, social partners and 
other  stakeholders  to  bring  education  and  skilling  governance  under  the  Union  of  Skills.  The 
Commission fully recognises the primary role of Member States in this matter, as established in 
the TFEU Articles 165 and 166, and will act  within its competences when implementing these 
actions. 

A.  Building skills for life through a solid educational foundation 

The sharp decline in the basic skills of our young people – including digital skills – is a ticking 
bomb  in  our  education  systems,  and  for  Europe’s  competitiveness.  The  PISA  2022  survey 
highlights  troubling  trends:  30%  of  15-year-olds  in  the  EU  lack  minimum  proficiency  in 
mathematics, while around 25% struggle in reading and science16. Some 43% of eighth graders 
are struggling with basic digital literacy confirming a downward trend17.   

While  on average,  the EU is  on track to  reach the  2030 EU-level  target  to  reduce early school 
leaving to below 9%, boys, young people with disabilities and learners from a migrant background 
are at higher risk of leaving school early. Additionally, the EU is further away from the 2030 EU-
level  target  of  below  15%  for  the  share  of  underachievers  compared  to  10  years  ago.  Socio-
economic  background  remains  a  strong  predictor  of  education  outcomes,  with  disadvantaged 
learners at 6.1 times higher risk of severe underachievement in basic skills when compared to their 
more advantaged peers18. Gender gaps exist in reading, with girls more likely to be among top 
performers  in  all  EU  countries,  and  underachievement  slightly  more  common  among  boys  in 
science. Gaps can be observed in rural areas in comparison to urban areas, notably in relation to 
reading19 and digital skills20. The share of rural young people with a higher education degree is 
limited in comparison to urban areas21.  

This puts the EU at risk of falling further behind in the global technological race, where artificial 
intelligence (AI), automation and cybersecurity needs  are reshaping industries and societies. In 
defence,  aerospace  and  fusion  technologies,  advanced  STEM  skills  are  essential  to  reduce 
dependence  on  non-EU  suppliers  and  develop  next-generation  capabilities.  However,  between 
2015 and 2022, there was an overall decrease (-7%) of doctoral graduates in STEM fields, with 
numbers falling for natural science, mathematics and statistics (-13.1%) and, for ICT- information, 
and communication technologies (-25.5%); and only increasing in engineering, manufacturing and 
construction (+9.4%). 

14 Resolution on a strategic framework for European cooperation in education and training for the period 2021-2030. 
OJ C 497, 10.12.2021. 
15 European Skills Agenda: https://employment-social-affairs.ec.europa.eu/policies-and-activities/skills-and-
qualifications/european-skills-agenda_en 
16 The twin challenge of equity and excellence in basic skills in the EU: An EU comparative analysis of the PISA 2022 
results 
17 International Computer and Information Literacy Study (ICILS) in Europe, 2023 
18 Education and Training Monitor 2024 
19 For further details on school education in rural areas, see OECD (2021), ‘Delivering quality education in rural 
communities.’ 
20 Even if it improved during the recent years, a gap of 15% remains (COM/2024/450 final). 
21 Eurostat (2022).  

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Furthermore, promoting STEAM approaches, which integrate science, technology, engineering, 
arts,  and  mathematics  by  breaking  down  disciplinary  barriers,  fosters  creative  thinking.  This 
skillset is highly sought after by employers22. It also facilitates digital and financial literacy by 
endowing students with the skills needed to understand how the digital and financial systems work.  

At  the  same  time,  there  is  an  urgent  need  to  address  gender  disparities,  as  women  remain 
underrepresented in many STEM fields, including in engineering and computer science, while men 
are underrepresented in sectors like health, welfare, and the teaching profession.  

It is crucial to make the teaching profession more attractive and gender balanced, to tackle teacher 
shortages, notably in STEM, and retain talent, and to ensure that teachers are better equipped to 
handle  underachievement  and  technological  change.  For  example,  only  40%  of  teachers  are 
prepared to use digital technologies in teaching. While 68% of teenagers already use AI, education 
systems lack the necessary frameworks to integrate AI effectively into learning23. 

Building skills for life, including media, digital literacy, critical thinking or basic cybersecurity, is 
vital  for Europe’s overall  preparedness  in  the face of crises, including  in terms  of democratic 
resilience.  In  this  context,  learners  also  need  strong  basic  and  advanced  skills,  in  particular  in 
STEM,  but  also  civic  knowledge  and  competences.  There  is  a  need  to  improve  the  risk 
preparedness in education and training systems to ensure that the EU and its Member States can 
continue to operate under all circumstances, providing key societal functions.  

Non-formal  and  informal  learning,  youth  work,  cultural  initiatives,  sport  participation  and 
volunteering  can  also  offer  valuable  opportunities  for  people  to  develop  knowledge,  skills, 
attitudes and behaviours to grow and become active citizens. 

Key deliverables at EU, national, regional and local level 

  Develop solid foundations in education and training  

o  Step up the support for basic literacy, mathematics, science, digital skills and citizenship via a 
Basic Skills Action Plan. By piloting a Basic Skills Support Scheme, the Commission will 
work  together  with  interested  Member  States  on  a  framework  of  effective  intervention 
measures, supported by EU funding, for children and young people struggling to acquire basic 
skills.  A  European  Innovative  School  Award  will  recognise  the  schools  that  are 
exceptionally innovative in changing curricula to teach students STEM and citizenship skills, 
including  through  cooperation  with  businesses  and  local  authorities.  The  Commission 
proposes to complement the existing target on basic skills as follows: By 2030,  

➢  the  share  of  underachievement  in  literacy,  mathematics,  science  and  digital  skills 
should  be  less  than  15%,  whereas  the  share  of  top  performance  in  literacy, 
mathematics and science should be at least 15%. 

o  Based on a review of the Digital Education Action Plan, the Commission will present a 2030 
Roadmap on the future of digital education and skills to promote equal access to digital 
education  for  all.  A  robust  EU  digital  education  ecosystem  will  prepare  for  the  future  and 
establish  long-term  partnerships  with  EU-based  EdTech  and  independently  developed 
European solutions. An initiative on AI in education and training will lay down an AI literacy 

22 World Economic Forum Future of Jobs 2023 report: https://www.weforum.org/publications/the-future-of-jobs-report-
2023 
23 Vodafone Foundation 2025 (AI In European Schools)  

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framework and support the integration of AI in education and training provision, addressing 
the need for online safety and digital well-being, tackling disinformation and misinformation, 
while promoting innovation in education. The Digital Competence Framework will be updated 
by the end of 2025 to take into account new emerging technologies, including AI.     

o  Provide support through a STEM Education Strategic Plan to reverse the trend of declining 
performance in STEM skills at school and to attract more students in STEM tracks and careers. 
Attracting more girls and women in STEM studies, including digital studies and careers, is a 
core  objective  of  this  plan.  In  addition,  the  Commission  proposes  a  strategic  target  on 
enrolment in STEM: By 2030,  

➢  the share of students enrolled in STEM fields in initial medium-level VET should be 

at least 45%24, with at least 1 out of every 4 students female25.  

➢  the share of students enrolled in STEM fields at tertiary level should be at least 

32%26 , with at least 2 out of 5 students female27.   

➢  the share of students enrolled in ICT PhD programmes should be at least 5%28, with 

at least 1 out of every 3 students female. 

o  Addressing the attractiveness of teachers’ and academic careers, through:  

➢  an EU Teachers and Trainers Agenda, helping Member States tackle teaching shortages, 

improving teachers’ working conditions, and improving career prospects.  

➢  a  European  competence  framework  for  academic  staff  in  higher  education, 
complementing 
the  existing  European  Competence  Framework  for  Researchers 
(ResearchComp). To revalorise pedagogical  roles in  academia,  additional recognition  is 
needed for innovative teaching, development of lifelong learning and training opportunities 
through  micro-credentials,  creating  transnational  education  opportunities  or  building 
cooperation with employers29.   

  Develop an attractive and innovative vocational education and training (VET) system 

Increase  the  attractiveness,  excellence  and  inclusiveness  of  VET  with  a  European 
Strategy  for  VET.  The  Strategy  will  focus  on  the  role  of  VET  in  supporting  EU 
competitiveness  and  innovation,  economic,  territorial  and  social  cohesion,  and  generational 
renewal by addressing skills shortages and mismatches, enhancing the attractiveness, quality 
and labour market  relevance of VET and  supporting mobility and internationalisation,. The 
Strategy will also address gender and other stereotypes in making study choices and build on 
benefits and labour market outcomes of VET so that VET becomes an equally valued learning 
pathway as higher education, including for women. 

  Create an inclusive and future-oriented higher education system 

24 The share of students enrolled in STEM fields in initial medium-level VET was 36.2% in 2022 (latest available data). 
The 2030 EU-level is to build on an average annual increase of about 1.1 percentage points. 
25 The share of women enrolled in STEM fields in initial medium-level VET (out of the total STEM enrolment) was 16.1% 
in 2022 (latest available data). The 2030 EU-level is to build on an average annual increase of about 1.1 percentage 
points. 
26 The share of students enrolled in STEM fields at tertiary level was 27.1% in 2022 (latest available data). The 2030 
EU-level target is to build on an average annual increase of about 0.6 percentage point. 
27 The share of women enrolled in STEM fields at tertiary level (out of the total STEM enrolment) was 31.8% in 2022 
(latest available data). The 2030 EU-level target is to build an average annual increase of about 1 percentage point.  
28 Up from 3.7% in 2022 
29 Council Recommendation of 25 November 2024 on attractive and sustainable careers in higher education. 

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o  Present an initiative to increase accessibility of higher education to a wider range of learners 
and ages – to meet the increasing demand for higher education graduates in the labour market, 
a trend that is forecasted to sharply accentuate with future jobs – and promote support services 
for students’ wellbeing, providing targeted support for them to succeed. It will support higher 
education institutions and their staff to implement the principles and guidelines and indicators 
on wider access and the social dimension of higher education, adopted as part of the Bologna 
process in 2024. 

o  Boost  entrepreneurship  education  at  all  levels,  with  more  dedicated  modules  –  including 
cross-border ones – at universities, in cooperation with their innovative ecosystem. This helps 
students build the skills and mindset needed for starting businesses and creating jobs. 

Key deliverables 

Action Plan on Basic Skills [Q1 2025] 

Basic Skills Support Scheme (pilot) [2026] 

2030 Roadmap on the future of digital education and skills [Q4 2025] 

AI in education initiative [2026] 

STEM Education Strategic Plan [Q1 2025] 

EU Teachers and Trainers Agenda [2026] 

European competence framework for academic staff [2026] 

European Strategy for vocational education and training (VET) [2026] 

Increasing accessibility of higher education [2027] 

Intergenerational fairness strategy [Q1 2026] 

B.  Upskill and reskill to ensure future-oriented skills 

The pace and scope of the ongoing transformations is unprecedented. Skills have always been 
one  of  Europe’s  competitive  advantages.  Ensuring  the  right  tools  to  upskill  and  reskill  – 
responsively and  effectively – will help European businesses and employers to be competitive, 
facilitate job-to-job transitions, and ensure that no one is left behind. 

Upskilling and reskilling are a shared responsibility. Public authorities at EU, national, regional 
and local levels have their role to play, but so do businesses, social partners, education and training 
providers, civil society organisations, local communities, and individuals.  

Future labour market projections reinforce the urgency of action to ensure the skills that 
Europe needs. The Commission has already identified 42 occupations with EU-wide shortages. 
The largest shortages are in construction trades, transport, some health professions such as nurses 

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and specialist doctors, and care workers30. They are likely to increase with AI, robotics, data-driven 
processes and the clean transition transforming industries31.  

Participation  in  adult  learning  remains  insufficient  as  only  39.5%  of  adults  engage  in  training 
annually32,  far  below  the  EU  headline  target  of  60%  by  2030.  Low-skilled  adults,  who  need 
training  the  most,  participate  even  less.  Participation  rates  are  also  on  average  lower  in  less 
developed regions and in regions in transition. Women and vulnerable groups such as persons with 
disabilities  encounter  additional  obstacles  which  hinder  their  participation  in  training.  In  this 
context,  the  Roadmap  for  Women’s  Rights  will  promote  equal  opportunities  and  access  to 
upskilling and reskilling. 

We need to empower older citizens who are willing to continue contributing to the labour market. 
Moreover, policy initiatives that mutually benefit several generations should be supported. Multi-
generational  workplaces  accommodate  diverse  needs,  invest  in  two-way  knowledge  and  skills 
transfers between young and older citizens and are ultimately beneficial to society as a whole.  

A  large  share  of  upskilling  is  workplace  training  provided  by  employers.  In  2020,  67.4%  of 
companies  offered  training,  but  participation  varies  significantly  across  sectors,  industries  and 
countries.  The  training  needs  of  adults  to  be  re-skilled  for  changing  occupations  or  sectors  are 
insufficiently met by public employment services. 
One major obstacle to taking up training among low skilled adults is lack of motivation33. Negative 
experiences with school-based learning can have a ‘scarring effect’.  Alternative approaches are 
needed,  involving  a  broader  set  of  actors  to  stimulate  adults  to  engage  in  learning  activities  in 
trusted or new environments. 

Social dialogue at all levels – European, national and local – is key to shaping skills development 
through  collective  bargaining,  running  training  and  development  funds,  guidance  services  and 
matching jobs with skills. This will be further promoted. 

Key deliverables from the public sector level at EU, national or regional level 

  Upskilling and reskilling of adults 

o  Continue  to  support  the  implementation  of  Individual  Learning  Accounts  (ILA) 34 to 
empower all people to upskill and reskill, regardless of their employment status. ILA can help 
people affected by the transitions to acquire the skills needed to move into new occupations. 
Many  Member  States  are  piloting  such  schemes  but  further  roll  out,  evaluation  and 
consolidation will be needed in the coming years.  

o  Expand the use of micro-credentials as flexible learning solutions, in line with the European 
approach35,  to  ensure that they are trusted, understandable, issued digitally and comparable 

30  Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing  an  EU  Talent  Pool 
(COM/2023/716). 
31 The  energy  workforce  will  have  to  increase  by  50%  by  2030  to  deploy  renewable  energies,  grid  and  energy  efficiency 
technologies. 
32 VET  Data  insights:  what  is  happening  with  vocational  education  and  training  and  adult  learning  in  the  European 
Union,  Cedefop:  https://www.cedefop.europa.eu/en/data-insights/what-happening-vocational-education-and-training-
and-adult-learning-european-union 
33 Lack of motivation among adults was a recurring problem identified by all Member States during the European Year 
of Skills. 
34 Council Recommendation ref of 16 June 2022 on Individual Learning Accounts (2022/C 243/03) 
35 Council Recommendation of 16 June 2022 on A European approach to micro-credentials for lifelong learning and 
employability (2022/C 243/02) 

10 

 
 
 
across sectors and countries. This will require actively engaging all types of micro-credential 
providers,  notably  private  training  providers,  on  top  of  education  and  training  institutions. 
Where  relevant,  micro-credentials  should  be  linked  to  national  and  European  Qualification 
Frameworks.  Guidance  on  quality  assurance  instruments  will  enhance  trust  and  take-up  of 
micro-credentials  in  recruitment  processes.  The  aim  is  also  to  increase  the  number  of  joint 
micro-credentials issued by Centres of Vocational Excellence, European Universities alliances 
and  EU  Skills  Academies,  and  to  increase  their  business  use  in  recruitment  and  career 
promotion, focusing in particular on strategic sectors.  

o  Support peer learning activities for Member States on innovative community learning 
spaces  to  engage  and  motivate  adults  with  low  basic  skills  to  upskill  by  operating  in 
environments  where  they  feel  more  comfortable.  Encourage  Member  States  to  work  with 
public employment services and social services to support adults in improving their basic skills 
and activate them as relevant. Intergenerational approaches could be tested in this context. 

o  Develop and set up a Skills Guarantee pilot, to ensure that workers in sectors undergoing 
restructuring or at risk of unemployment, have the opportunity to develop further their careers 
in other sectors and/or companies. By promoting their upskilling and reskilling, in line with 
relevant  national,  regional  and/or  sectoral  transition  strategies,  the  Skills  Guarantee  will 
support their employment prospects and job security. 

o  Assess, as part of the review of the General Block Exemption Regulation36, if state aid rules 
applicable to training need to be updated to provide better incentives for industry, including 
the social economy, to invest in upskilling and reskilling of workers, for a just transition. 

  Leveraging  public-private  partnerships  and  promoting  cooperation  in  strategic 

sectors 

o  Strengthen and streamline the Pact for Skills to, support strategic sectors in their up and 
reskilling,  including  through  the  Large-Scale  Partnerships  in  line  with  the  Competitiveness 
Compass,  Clean  Industrial  Deal  and  future  Preparedness  Union  Strategy.  Reinforcing  the 
Large-Scale  Partnerships  will  support  the  development  of  sector-specific  solutions 37.  The 
reinforced Pact will tackle the fragmentation of initiatives and improve linkages between them, 
such  as  the  EU  Skills  Academies,  European  Alliance  for  Apprenticeships,  the  Centres  of 
Vocational  Excellence  and  European  Universities  alliances.  Improvements  will  be  made  to 
cross-sectoral synergies among Pact members, knowledge and resource sharing along the value 
chain  (e.g.  skills  intelligence,  occupational  profiles,  curricula,  training  modules).  Pact 
members have pledged to upskill 25 million workers by 2030. The Commission is calling on 
Pact members to at least double their commitments.  

o  Review and implement targeted EU Skills Academies. A review will be made of existing 
academies, including Net-Zero Industry Academies, to assess factors of success. Based on this 
analysis, a targeted number of academies will be rolled-out, building on the most successful 
models,  to  deliver  the skills  needed  by  industry  for  the  green  and  digital  transition  and  the 

36 Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the 
internal market in application of Articles 107 and 108 of the Treaty, as amended, consolidated text https://eur-
lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:02014R0651-20230701 
37 Large Scale-Partnerships exist in the following sectors: aerospace and defence, agri-food, construction, creative and 
cultural industries, digital, energy intensive industries, health, electronics, mobility-transport-automotive, proximity and 
social economy, renewable energy, retail, textiles and tourism ecosystems. 

11 

 
 
 
Clean Industrial Deal. They should target strategic sectors such as defence, automotive, the 
circular economy, wind, grids, food, digital fields such as AI, Quantum, Virtual Worlds and 
Semiconductors.  The  Commission  will  launch  the  Industry-Academia  network  of  the 
Cybersecurity Skills Academy in June 2025 and promote Cyber-campuses for cybersecurity 
skills  in  various  Member-States  and  regions.  The  European  Institute  of  Innovation  and 
Technology  (EIT)  will  equip  1  million  learners  by  2028  with  the  skills  needed  in  strategic 
sectors,  in  collaboration  with  businesses,  paying  particular  attention  to  gender  balance 
participation.   

o  Pilot actions, including through Erasmus+, the Digital Europe Programme and the EIT, to set 
up  transnational  university-business  partnerships  to  train  people  for  sectors  with  severe 
skills  gaps.  Such  partnerships  could  for  example  support  dedicated  joint  programmes  or  to 
develop jointly micro-credentials, and to support entrepreneurship and mentorship for start-
ups and scale-ups. The EU Startup and Scaleup Strategy will set out additional actions to help 
start-ups and scale-ups retain and attract the talent they need to launch and grow in the EU.  

o  Expand the European Alliance for Apprenticeships to reach 700 pledges by 2030, including 

people outside the labour market and apprenticeships for adults to upskill and reskill. 

Key deliverables 

Pilot a Skills Guarantee for workers [2025] 

Roll-out of targeted EU Skills Academies, after a review of existing ones [2026]    

Pilot transnational university-business partnerships for sectors with severe skills gaps [2026] 

C.  Circulate and allocate skills to unlock the full potential of the single market 

The single market provides a unique framework for the ‘circulation’ - free movement of people - 
with their skills. The EU has developed legislation for the free movement of regulated professions 
as well as a number of transparency and labour market tools such as the European Qualifications 
Framework (EQF), Europass, ESCO38, EURES39. In addition, the European Credit Transfer and 
Accumulation  System  has  been  developed  for  post-secondary  education  under  the  Bologna 
Process.   

However, barriers continue to hinder the seamless portability and recognition of people’ skills and 
qualifications.  By  facilitating  validation  of  skills  and  recognition  of  qualifications  and  by 
strengthening transnational  cooperation, the Union of Skills  will support balanced cross-border 
mobility and free movement of knowledge and skills. This will increase the matches between the 
skillset of the persons and the jobs they take when moving in the EU, reducing brain drain and 
countering depopulation tendencies in regions at risk of demographic decline. 

Working  together  with  Member  States  towards  a  European  degree  recognised  by  all  Member 
States, the Union of Skills will offer the highest quality education and training, pooling together 
resources through transnational and transdisciplinary cooperation supported by Erasmus+. 

38 European Classification of Skills/ Competences, Qualifications and Occupation  
39 European Employment Services 

12 

 
 
 
Key deliverables at EU, national, regional and local level 

  Facilitating portability of skills and qualifications 

o  Develop  a  Skills  Portability  Initiative  to  open  up  more  opportunities  for  workers  and 
businesses  to  fully  capture  the  potential  of  the  single  market.  First,  explore  the  need  for  a 
potential  legislative  proposal  to  address  barriers  to  the  mobility  of  workers,  including  in 
unregulated professions. This could build on existing transparency tools that seek to ensure 
understanding,  comparability,  trust,  acceptance  of  skills  and  qualifications  across  Member 
States. It could also promote common European formats for interoperable digital credentials 
to enable the understanding and acceptance of skills and qualifications. Second, building on 
the Implementation Report of the Professional Qualifications Directive, the Commission will 
consider actions to further facilitate, expand and modernise recognition processes for regulated 
professions, in particular by leveraging digital tools. Third, it will include exploring whether 
to propose common rules for simpler procedures for handling the recognition and validation 
of qualifications and skills of third country nationals. 

o  Develop  a  common  European  framework  for  the  automatic  recognition  of  study 
qualifications and learning periods abroad in school, VET and higher education. Explore 
the  possibility  of  EU  accession  to  the  Convention  on  the  Recognition  of  Qualifications 
concerning  Higher  Education  in  the  European  Region  (the  “Lisbon  Recognition 
Convention”) 40 .  This  will  aim  to  reduce  the  uncertainty  of  mobile  learners  about  the 
recognition of their qualifications and learning outcomes, avoiding lengthy and unpredictable 
administrative procedures. They create a level playing field for all learners, independent from 
their education and training sector and their country of origin. 

  Future-oriented European qualifications  

o  Facilitate the development of innovative joint European study programmes, including in 
disciplines  for  strategic  sectors  and  key  technological  domains  such  as  AI,  quantum, 
semiconductors, data or cybersecurity, potentially through a European degree/label41 based 
on  commonly  agreed  criteria.  This  initiative  will  foster  future-oriented  skills  and  pooling 
expertise and knowledge from higher education institutions across the EU, beyond what any 
single institution can offer.  

o  Facilitate  the  mobility  of  VET  learners  and  workers  by  initiating  work  towards  the 
development of a potential European VET diploma/label. The diploma could cover initial 
VET at upper-secondary and post-secondary level. Supported by Erasmus+, a pilot will engage 
Member States and VET providers to test such a European VET diploma/label in 2025-2026.   

  Deepened transnational cooperation to deliver future-oriented skills and competences 

o  Explore  the  development  of  a  suitable  European  legal  status  for  alliances  of  higher 
education institutions; and an investment pathway for European Universities alliances, to 
ensure sustainable cooperation and funding, pool resources and strengthen partnerships with 
businesses and research departments within their innovation ecosystem.  

40 CETS 165 - Convention on the Recognition of Qualifications concerning Higher Education in the European Region. 
41 Commission Communication on a Blueprint for a European degree 

13 

 
 
 
o  Strengthen transnational cooperation under Centres of Vocational Excellence and contribute 
to VET national reforms through private-public partnerships. Continue supporting the creation 
of Centres of Vocational Excellence in 2026-2029, based on an evaluation.  

o  Pilot European School Alliances in 2026 to increase pupil and teacher mobility, cross-border 
cooperation between schools and school authorities and innovation. The alliances will serve as 
testbeds for innovative teaching methods, curricula and competence frameworks, particularly 
for  basic  skills.  The  Alliances  will  support  participating  schools  in  becoming  learning 
organisations for effective basic skills teaching, including in cooperation with local authorities. 

  Boosting mobility for all learners 

o  Strengthen Erasmus+ to make it more inclusive and accessible for all, with a particular focus 
on learners with fewer opportunities – including in VET. A bigger outreach will bring a greater 
scope for skills development and thereby will more decisively contribute to building a resilient, 
competitive, and cohesive Europe.  

Key deliverables 

Skills Portability Initiative [2026]  

Common  European  framework  for  the  automatic  recognition  of  study  qualifications  and 
learning periods abroad in school, VET and higher education [2027] 

Launch of innovative joint European study programmes with a European degree/label [2026] 

A legal status for European Universities alliances [2027] 

Pilot a European VET diploma [2025-2026]  

Pilot European School Alliances [2026] 

D.  Attract and retain skills from third countries to address skills shortages and develop 

top talent in Europe  

Europe’s working-age population is expected to shrink by one million adults every year until 2050. 
Efforts are needed to encourage labour market participation by as many people of working age as 
possible,  dismantling  persisting  barriers  and  reaching  out  to  groups  with  fewer  opportunities. 
However, even then, declining demography means the EU population will not be enough to tackle 
labour  shortages  and  to  optimise  the  EU’s  innovation  potential.  The  gradual  integration  of 
candidate countries into parts of the Single Market will strengthen the competitiveness of the EU 
economy  in  today’s  fierce  global  competition.  Strategic  support  to  education  and  training  in 
partner countries as part of Global Gateway Strategy has a transformative impact and enables to 
drive sustainability, while also contributing to enhancing competitiveness of European companies, 
especially in countries of investment. 

Complementing the measures to activate and upskill the EU workforce, the EU must become a 
global magnet for talent, to both attract and retain it. To maintain and strengthen its position in 
education, research and innovation, Europe must strengthen its attractiveness for top researchers, 
specialists in strategic fields, academics and students worldwide, and specialists in strategic fields, 
such as those linked to the next wave of frontier technologies. The EU’s ability to compete on a 
global scale depends not only on retaining homegrown talent but also on actively drawing talent 

14 

 
 
from outside Europe. By offering world-class education and research infrastructure, competitive 
career  prospects,  and  a  supportive  regulatory  and  funding  environment,  the  EU  can  become  a 
destination of choice for the brightest minds. European Research Council frontier research grants 
can be instrumental to attract and retain in the EU brilliant researchers from around the world, by 
providing long-term and flexible funding to do frontier research in Europe. 

This ambition will be accompanied by equal attention to ensure access to and delivery of quality 
jobs, notably in sectors where workers are exposed to a higher risk of unfair, unhealthy and unsafe 
working conditions. Proper enforcement of labour mobility rules, including with the support of the 
European Labour Authority (ELA), is of paramount importance to build a well-functioning Single 
Market  and  this  concerns  all  workers,  including  third  country  nationals,  and  especially  in  the 
context of posting of workers and in long and complex sub-contracting chains. 

Third country nationals legally residing in the EU should be supported in their integration and be 
able to use their talents to their full potential, with good working conditions. Cooperation with 
partner countries on international labour mobility and skills development should also be reinforced.  

The Union of Skills will ensure that Europe arrives at the forefront of global talent attraction for 
innovation and promotes diversity and inclusion, taking into account the need to assess security 
implications for strategic sectors such as cybersecurity, aerospace and defence.  

Key deliverables at EU, national, regional and local levels level 

  A Europe talent magnet framework  

o  Once  adopted  by  the  co-legislators,  set  up  the  EU  Talent  Pool,  an  EU-wide  platform 
facilitating international recruitment of third country jobseekers residing outside the EU, 
and having the skills required to work in EU-wide shortage occupations at all skills levels.  

o  Make  Europe  attractive  for  the  best  researchers  around  the  world,  by  pre-empting  and 
countering brain-drain from the EU both for European and international researchers with: 

➢  offering excellent scientific working and employment conditions and career prospects, 
notably  by  focusing  on  tackling  precarity  in  early  research  careers,  through  a  Marie 
Skłodowska-Curie  Action  ‘MSCA  Choose  Europe’.  A  pilot  will  be  launched  in  2025. 
Applicants will be able to link MSCA grants to competitions leading to long term positions 
in universities and research institutions after the end of the project.  

➢  Supporting the implementation  of the  new framework of research careers42 and of the 
European Charter for Researchers, particularly relevant for retaining researchers in Europe 
and for attracting back the scientific diaspora. 

o  Make European education and training systems attractive to brilliant students.  

➢  The Commission proposes a new target: By 2030, the annual number of learners from 
outside the EU  coming to study and obtain a degree at tertiary level in the EU should 
be at least 350 00043. 

42 Proposal for Council Recommendations for an ERA Policy Agenda 2025-27.  
43 The 2030 EU-level target concerns the number of inward degree mobile tertiary graduates from outside the EU. This 
figure was 248 827 in 2022 (latest available data), meaning that the 2030 EU-level target requires an approximate 41% 
increase by 2030. A linear forecast suggests a 2030 figure of around 328 000, meaning that the 2030 EU-level target 
requires an improvement of approximately 7% compared to the linear progression. 

15 

 
 
 
➢  Pilot virtual study fairs, specifically on STEM and other strategic disciplines, and organise 
physical promotion activities under the ‘Study in Europe’ banner, to attract students from 
leading  institutions  in  third  countries  to  study  in  Europe  in  key  disciplines,  with  the 
incentive of Erasmus Mundus and the Digital Europe Programme scholarships,  and 
European Universities alliances. 

o  Facilitate the attraction and integration of skilled third-country nationals.  

➢  The Commission will present later this year a Visa Strategy which will include measures 
to  support  the  arrival  of  top  students,  researchers  and  trained  workers  from  third 
countries, for example through a better implementation of the Students and Researchers 
Directive 44 and  the  BlueCard  Directive.  Stronger  support  to  Member  States  and  their 
consulates is also needed, to ensure that long-stay visas and residence permits can be issued 
in a timely manner. EU funding will facilitate improved coordination between migration 
and education authorities.  

➢  A  key  factor  for  attracting  talent  is  creating  the  right  conditions  in  Europe  for  their 
integration and supporting family life. The Commission will review later this year the EU 
Action  Plan  on  Integration  and  Inclusion  and  will  explore  ways  of  better  supporting 
integration  and  family  reunification  measures,  in  particular  for  skilled  workers  and 
researchers.  

➢  ‘Train to hire programmes’ are critical to address workforce needs in Europe and contribute 
to the skills development of partner countries. Such programmes are being developed as 
part of Talent Partnerships and should be further developed as part of the Multipurpose 
Legal Gateway Offices set up jointly with interested Member States to provide additional 
support to employers in finding the skills they need, in particular in sectors of shared interest, 
such  as  construction,  care,  ICT,  transport,  bioeconomy,  tourism,  agriculture,  or  culture. 
Such programmes should be based on a public-private partnership and should be mutually 
beneficial  both  for  the  EU  and  partner  countries.  The  upcoming  New  Pact  for  the 
Mediterranean offers particular opportunities in this regard.  

Key deliverables 

Launch of the EU Talent Pool IT Platform  

Marie Sklodowska-Curie Action ‘MSCA Choose Europe’ Pilot [Q4 2025] 

A new Visa Strategy [Q4 2025] 

Launch of Multipurpose Legal Gateway Offices [2026] 

4.  Investing in education and skills – mobilising public and private investment 

Education and skills are an investment - not a cost - which yields benefits many times over. 
Investment in a well-educated population and workforce not only enables people to get access to 
and  keep  quality  jobs.  It  is  also  an  investment  in  the  EU’s  competitiveness  and  preparedness, 

44 Directive (EU) 2016/801 of the European Parliament and of the Council of 11 May 2016 on the conditions of entry 
and  residence  of  third-country  nationals  for  the  purposes  of  research,  studies,  training,  voluntary  service,  pupil 
exchange schemes or educational projects and au pairing (recast) 

16 

 
 
 
enhanced  economic  and  inclusive  growth  and  resilience,  social  and  territorial  cohesion,  and, 
ultimately, strengthening the European social model and the protection of European values and 
democracy.   

The current seven-year budget (2021-2027) allocates investment in education and skills through 
programmes such as the European Social Fund Plus (ESF+), which supports skills with EUR 42 
billion, the Recovery and Resilience Facility (EUR 67.7 billion for both human capital investment 
and  infrastructure),  European  Regional  Development  Fund  (EUR  8.7  billion),  Erasmus+  (EUR 
26.1 billion), Just Transition Fund (EUR 2.3 billion) and InvestEU (leveraging over EUR 1 billion). 
It is important that Member States take advantage of the mid-term review of the cohesion policy 
programmes  2021-2027  to  reinforce  their  investments  on  education  and  skills,  in  support  of 
ambitious reforms to implement the Union of Skills. 

Future EU funding will continue to support investments in education and skills at EU level. 
By  leveraging  best  practices,  pilot  projects,  and  lessons  learned  at  the  EU  level,  alongside 
improved  coordination  with  European  policy  priorities,  we  will  maximise  the  added  value  of 
investments in sectors critical to European competitiveness. 

The EU budget is only one part of the picture. Given the scale of the challenge – and the reward 
in  terms  of  competitiveness,  prosperity  and  resilience  –  it  is  crucial  to  leverage  financing  and 
initiatives beyond EU funds in both the public and private sector.  

In  2022,  general  government  expenditure  on  all  levels  of  education  was  4.7  %  of  GDP  (EU 
average). 0.1 % of GDP was spent on adult learning.  

Member States and the private sector need to invest more in education, training, upskilling and 
reskilling. 

Key deliverables at EU national, regional, and private sector levels level 

o  Fully  use  the  possibilities  under  InvestEU  and  launch  a  new  joint  “EU  Invest  in  Talent” 
Platform,  in  cooperation  with  the  European  Investment  Bank  Group,  and  open  to  all 
international  financial  institutions  and  national  promotional  banks,  involving  blending  EU 
funding  and  lending  from  main  investors  towards  fostering  investments  at  all  levels  of 
education  in  Europe,  together  with  scaling  up  finance  and  impact.  Under  the  platform, 
coordinate  private-sector  initiatives  and  boost  private  sector  investment  in  training, 
upskilling and reskilling, in key industrial ecosystems by reinforcing the Pact for Skills, the 
EU Skills Academies and by setting-up transnational university-business partnerships. Centres 
of Vocational Excellence and European Universities alliances are also excellent vehicles for 
stimulating private sector investment in developing future-oriented skills. 

o  Encourage  Member  States  to  use  the  newly  introduced  possibility  for  an  extended 
adjustment  path  in  the  reviewed  economic  governance  framework  to  include  growth-
enhancing  reforms  and  investment  in  education,  training,  upskilling  and  reskilling  reforms, 
which contribute to increase productivity and labour market participation. 

o  Continue and reinforce the work on social investment, including with the Social Investment 
Hub 45 ,  by  promoting  mutual  learning  as  well  as  technical  support  to  Member  States  to 

45 See Council Conclusions on the role of labour market, skills and social policies for resilient economies (11066/24) 
and Voluntary guiding principles for EU Member States for evaluating economic effects of reforms and investments in 
the labour market, skills and social policy domains (10779/24) 

17 

 
 
 
implement social, labour market and skills reforms and investments and improve capacity to 
measure their social and economic returns on productivity and fiscal sustainability. 

o  Explore  best  practice  to  further  support  quality  jobs  and  promote  the  reskilling  of  the 

workforce through public procurement. 

o  Evaluate the quality and relevance of investment in education and training, supported by 

the Learning Lab on Investing in Quality Education and Training46. 

o  Encourage  Member  States  to  make  appropriate  use  of  the  financing  possibilities  for 

education and training offered by the ESF+. 

5.  Governance 

Delivering on the Union of Skills  will  require increased ambition,  collective responsibility and 
ownership, anticipation, a coordinated steer, investment, and effective reform implementation at 
multiple  levels.  For  this,  the  Union  of  Skills  will  build  on  a  strong  structure  and  governance, 
delivering on the priority of developing a strong human capital, as a horizontal enabler, in support 
of the EU’s competitiveness and preparedness priorities. In this regard, the Union of Skills will be 
aligned to the new steering mechanism for competitiveness as outlined in the Competitiveness 
Compass,  which  will  allow  to  integrate  swiftly  and  effectively  the  issues  pertaining  to  skills, 
including in the concrete sectors identified as critical to European competitiveness.  

The Union of Skills governance, to be fully implemented as soon as possible, will build on a strong, 
timely  and  relevant  coherent  and  coordinated  skills  and  education  intelligence  platform  –  the 
European Skills Intelligence Observatory. With the objective of simplifying and consolidating 
an informed and agile policy-making process in this area, the Union of Skills will build on a close 
cooperation among all relevant stakeholders, notably the social partners, the private sector and the 
education and training institutions, through a European Skills High-Level Board.  

Because  human  capital,  education  and  skills  are  a  core  matter  for  ensuring  European 
competitiveness,  the  Commission  intends  to  introduce  a  new  EU-27  Recommendation  on 
education and skills in the European Semester cycle. The Recommendation would build on the 
input from the Observatory and the High-Level Board, to guide the Member States and all relevant 
actors in  the field  of human  capital, in  education and skills  and  contribute to  making sure that 
reforms and investments – public and private alike – deliver on most stringent needs in a strategic 
and effective way.  

The main elements of the Union of Skills governance are outlined below.    

  Providing  the  necessary  data  for  a  well-informed  policy:  A  European  Skills 

Intelligence Observatory  

Timely and accurate skills intelligence is crucial for ensuring informed policy action and effective 
funding. Through a newly created European Skills Intelligence Observatory, the Commission will 
provide strategic data and foresight regarding skills (current and future) stocks, use and needs, in 
concrete sectors and regions, and the performance of education and training systems. This timely 
data  reporting  will  allow  to  have  early  warning  alerts  regarding  skills  shortages  in  critical  or 
strategic sectors for the EU. 

46 The Learning Lab on Investing in Quality Education and Training 

18 

 
 
 
The  Commission43  is  taking  steps  to  improve  skills  intelligence  and  data  gathering  in  close 
coordination  with  Eurostat  and  with  the  relevant  EU  Observatories  and  agencies47 (Eurofound, 
European Labour Authority and Cedefop), which gather a wealth of data, including  the annual 
labour shortages and surpluses report and the skills online vacancy analysis tool, producing near 
‘real-time’ intelligence and skills forecasting. Other relevant data sources include the sectoral skills 
intelligence  gathered  through  the  Pact  for  Skills  and  ‘Blueprint’  skills  alliances,  the  European 
graduate  tracking,  the  Education  and  Training  Monitor,  the  European  higher  education  sector 
observatory, the Research and Innovation Careers Observatory (ReICO), the European Data Space 
for Skills, and the Eurydice network. 

The European Skills Intelligence Observatory will allow to centralise all these granular, real-time 
and comparable data in a one-stop-shop, providing the necessary inputs to the High-Level Skills 
Board and feeding the work of the European Semester. 

  Driving the change - A European Skills High Level Board  

Building on the findings of the European Skills Intelligence Observatory, and to support work at 
political level, the Commission will establish an ad hoc European Skills High Level Board. The 
Board, chaired by the European Commission, will bring together the key stakeholders, including 
business leaders, education and training providers and social partners to provide comprehensive, 
cross-sectoral  insights  and  guidance  on  skills  to  the  EU  policy  makers,  ensuring  a  coordinated 
vision and the identification of the bold action necessary to strengthen our human capital, building 
on the findings of the European Skills intelligence observatory.  

The Board will support the work of the Commission towards a EU-27 Recommendation on human 
capital  and on the country-specific recommendations.  As relevant,  it will take into account  the 
recommendations of the Digital Decade Board on digital basic skills, as well as of other relevant 
bodies. By bringing together the main relevant stakeholders, the Board will facilitate speedy action 
on the ground, while simplifying and reducing the times of discussion and consultation of different 
bodies  and  institutions  at  EU  and  national  levels.  The  Board  will  have  a  dynamic  and  agile 
structure,  being  able  to  respond  quickly  to  the  evolving  situation  on  the  EU  sectoral  skills 
landscape  and  convening  the  relevant  stakeholders  depending  on  different  urgent  issues  to  be 
discussed. 

  Towards a dedicated EU 27 Recommendation on human capital: education and skills 

in the European Semester  

Skills  are  key  enablers  of  sustainable  competitiveness.  The  Union  of  Skills  will  therefore  be 
anchored  in  the  competitiveness  steering  mechanism  that  will  comprise  the  Competitiveness 
Coordination Tool and the streamlined European Semester. 
The  introduction  of  the  Social  Convergence  Framework  in  the  European  Semester 48 in  2024 
brought increased attention to social imbalances and risks for upward social convergence. Further 
tailored analysis and advice on the human capital policy of the Member States can be added to the 
Social Convergence Framework, to meaningfully improve and update the monitoring and analysis 

47 A data lakehouse is currently under construction to merge all the data of the agecies and is coordinated by Eurofound. 
The lakehouse is under pilot phase and the work is currently focused on merging data on skills. 
48 Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective 
coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) 
No 1466/97 

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of employment, social and education and skills outcomes. The Commission intends to introduce a 
horizontal EU-27 recommendation on human capital  to  all Member States, underpinned by the 
findings  of  the  European  Skills  Intelligence  Observatory  and  the  analysis  of  the  European 
Commission, supported by the European Skills High-Level Board. 

The  EU-27  recommendation  should  have  a  particular  focus  on  education  and  skills  structural 
issues, as well as its relationship with the rapidly evolving labour market and competitiveness. Its 
aim is to provide a contribution to the agenda setting for issues related to human capital for the EU 
as a whole, as well as an input for the relevant policy debates in the Council and to inform the 
Tripartite Social Summit. This should be complementary to the other elements of the European 
Semester, including notably the Joint Employment Report, the Employment Guidelines, and will 
feed into the country reports and the country-specific recommendations.     

At institutional level, the Commission will steer a closer collaboration and linkages to guarantee 
coherence  between  the  different  elements  of  the  European  Semester  to  and  encourage  closer 
collaboration  between  the  relevant  Council  formations,  notably  education,  employment  and 
economic ministries, to address the skills human capital challenge at EU and national levels in a 
whole-of-government approach. 

At policy implementation level, a simplified European Education Area governance structure could 
be closely integrated into the Union of Skills governance, to build on the effective cooperation 
between the different  authorities  to  bring about  the systemic change needed for higher impact. 
Strong  and  agile  governance  structures  would  reinforce  support  for  Member  States  in  the 
implementation of evidence-based reforms. In the first half of 2025, the Commission will publish 
an evaluation report on the European Education Area, which will inform the review by the Council. 

6.  Conclusion – the way forward 

The  Competitiveness  Compass  for  the  EU  highlights  that  the  foundation  of  Europe’s 
competitiveness, and preparedness for the future, is its people, with skills as an enabling condition. 
The  Union  of  Skills  proposes  a  new  approach,  combining  education,  training  and  employment 
policies, united around a common vision on competitiveness. It takes forward four strands of action 
on skills that will boost innovation, decarbonisation, preparedness, democracy, and social fairness.  

The Union of Skills will frame the work of the Commission for this entire mandate. The challenge 
ahead is enormous and can only be tackled if all actors assume collective responsibility and step 
up  in  a  whole-of-government  approach  addressing  both  the  supply  and  demand  side  of  skills 
(including  skills  development,  recognition,  the  links  with  working  conditions,  demography, 
company  practices)  including  Member  States,  social  partners,  the  business  community, 
universities and schools.  

Full commitment – based on a strong delivery mechanism and governance anchored in a coherent 
and lean competitiveness steering mechanism to inform decisions for investment and refoms at 
EU  and  national  level,  which  will  comprise  the  Competitiveness  Coordination  Tool  and  the 
streamlined Semester, supported by EU and national funds with a strengthened role for public and 
private partnerships – is the only way forward as clearly identified by the Union of Skills. This 
will be based on a strong delivery mechanism and governance through the European Semester, 
supported  by  EU  and  national  funds,  with  a  strengthened  role  for  public  and  private 
partnerships.The Commission invites the European Parliament, the European Council, the Council 

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and social partners to endorse the Union of Skills and to actively contribute to delivering on the 
initiatives it contains. 

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