Recommendation for a COUNCIL RECOMMENDATION on human capital in the European Union
Date: 2025-11-25
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: continuing education, digital literacy, economic policy, education policy, fiscal policy, higher education, innovation, labour market, social policy, vocational education

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   EUROPEAN COMMISSION  Strasbourg, 25.11.2025  COM(2025) 959 final  Recommendation for a COUNCIL RECOMMENDATION on human capital in the European Union  
 
Recommendation for a 

COUNCIL RECOMMENDATION 

on human capital in the European Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 148(4) thereof, 

Having regard to the opinion of the Employment Committee, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Pillar  of  Social  Rights,  proclaimed  by  the  European  Parliament,  the 
Council and the Commission in 20171, provides a compass for upward convergence in 
working and living conditions in the EU. Its first principle affirms that “Everyone has 
the right to quality and inclusive education, training and life-long learning in order to 
maintain and acquire skills that enable them to participate fully in society and manage 
successfully transitions in the labour market”.  
The Competitiveness Compass2, adopted by the Commission in January 2025, sets out 
a  roadmap  for  restoring  the  EU’s  economic  dynamism  and  boosting  growth.  The 
promotion of skills is identified as a critical enabler, recognising that a highly skilled 
workforce  is  the  backbone  of  the  European  economy,  a  driver  of  productivity, 
innovation  and  quality  jobs,  and  an  enabler  of  a  fair  green  and  digital  transition.  In 
March  2025,  the  Commission  adopted  a  Communication  on  the  Union  of  Skills3, 
highlighting the crucial role of human capital  and future-oriented skills  in  enhancing 
the Union’s  competitiveness  and strategic autonomy,  strengthening preparedness  and 
supporting  sustainable  prosperity.  In  2025,  the  Commission  also  published  two 
Communications  on  Artificial  Intelligence  (AI),  in  which  people  and  skills  are 
highlighted as playing a crucial role4 5.  
As recognised in the Union of Skills6, the integrated approach to policy coordination 
and  enhanced  multilateral  surveillance  within  the  European  Semester  provides  the 
framework to guide the necessary structural reforms of labour markets, education and 
training  systems  and  investments  in  human  capital  development,  also  taking 
intergenerational  fairness  into  account.  This  recommendation  on  human  capital  is 

OJ C 428, 13.12.2017, p. 10 
Communication  of  the  Commission  of  29  January  2025  ‘A  Competitiveness  Compass  for  the  EU’ 

1 
2 
(COM/2025/30 final). 
3 
Communication of the Commission of 5 March 2025 ‘The Union of Skills’ (COM(2025) 90 final). 
4 
Communication of the Commission of 9 April 2025 ‘AI Continent Action Plan’ (COM(2025) 165 final) 
5 
Communication  of  the  Commission  of  8  October  2025  ‘Apply  AI  Strategy’  (COM(2025)  723  final), 
which puts forward sectorial and cross-sectorial actions, including on AI literacy, upskilling and reskilling and 
skills intelligence, to increase the adoption of AI in key industries and the public sector. 
6 
informed debates on reforms and investments 2020/C 64/01. 

In  line  with  the  Council  Resolution  on  education  and  training  in  the  European  Semester:  ensuring 

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therefore designed to complement the Guidelines for the Employment Policies of the 
Member States. It identifies areas of common concern for the EU. Where relevant in 
the  context  of  each  Member  State,  these  areas  will  be  later  analysed  in  the  country 
reports and may be addressed in the country-specific recommendations issued as part 
of  the  European  Semester  cycle.  These  concerns  have  also  an  important  territorial 
dimension,  with  significant  territorial  differences  across  Europe  in  skills  and  human 
capital endowment. 

(4)  Member  States  examine  each  year  within  the  Employment  Committee  under  Article 
150 TFEU, in light of the joint annual report on the employment situation in the Union 
and on the implementation of the Guidelines for employment (Article 148(5) TFEU) 
and  considering  the  information  received  from  Member  States  through  their  Annual 
Progress Reports (which also serve the purposes of Article 148(3) TFEU), all aspects 
related to employment outcomes in the EU.  

(5) 

(6) 

The  EU  faces  a  persistent  shortage  of  workers  and  skills.  They  are  sizeable  across 
Member States, regions, sectors and affect companies of all sizes. The EU job vacancy 
rate,  a  proxy  for  measuring  labour  shortages  remains  elevated  and  close  to  its  pre-
pandemic  level  at  2.2%  (Q1-2025)7.  The  lack  of  skilled  labour  also  hampers 
investment and innovation: 68% of medium-sized companies reported skills shortages 
as a serious issue in 20238, and 77% of companies indicated that skills shortages were 
barriers to long-term investment in 20249.  

Some sectors and occupations face high EU-wide labour and skills shortages. In 2024, 
the  most  widespread  shortage  occupations  in  the  EU  concerned  technical  profiles  in 
manufacturing  and  construction  (including  welders  and  flame  cutters,  building  and 
related electricians, plumbers and pipe fitters, metal sheet workers), health professions 
(nursing  professionals,  generalist  and  specialist  medical  practitioners,  healthcare 
assistants  and  physiotherapists,  with  an  estimated  shortage  of  1.2  million  doctors, 
nurses and midwives in 2022 for OECD countries10). At the same time, only 12% of 
EU  farmers  are  under  40,  potentially  putting  the  EU’s  food  security  at  risk.  The 
transport  sector  likewise  faces  widespread  labour  shortages  of  trained  professionals 
across  all  transport  modes  (heavy  truck,  lorry,  bus  and  tram  drivers,  as  well  as 
seafarers,  in  particular  officers)11,12.  There  are  also  widespread  shortages  for  ICT 
specialists,  civil  engineers  and  teaching  staff.  ICT  specialists  were  just  4.8%  of  the 
workforce, far below the Digital Decade target  2030 of 10%, with significant gender 
imbalances.  In  relation  to  the  green  transition,  24  shortage  occupations  have  been 
identified across multiple Member States, including insulation workers, civil engineers 
and  air  conditioning  and  refrigeration  mechanics  (in  14  Member  States),  civil 
engineering  technicians  (in  12  Member  States)  and  roofers  (in  11  Member  States). 
Europe  will  need  to  develop  capacity  in  core  circular  tasks  that  need  to  adapt  from 
linear  to  circular  systems  and  markets.  These  skills  are  at  all  levels,  from  architects 
and engineers to waste collectors and sorters.  

(7) 

Technological advancements and the green and digital transitions will increase further 
the demand for new skills and exacerbate existing shortages and mismatches. Driven 

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10 
11   
12  

The average job vacancy rate between 2013 and 2019 amounted to 1.7%.  
Eurobarometer no. 537 11/2023. 
EIB Investment Survey 2024: European Union Overview. 
European Commission/OECD Report on Health at a Glance in Europe 2024. 
EURES_Report_on_labour_shortages_and_surpluses_2024. 
Seafarers - Mobility and Transport - European Commission. 

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(8) 

(9) 

by the rise of AI, renewable energy technologies, biotech, defence, space and security 
needs,  as  well  as  complex  data  analytics,  the  demand  for  science,  technology, 
engineering and mathematics (STEM) professionals is growing.   

The State of the Digital Decade 2025 (SDD25) highlights that the gap between labour 
market demand and available talent continues to widen, especially in fields such as AI, 
cybersecurity,  data  analysis  and  semiconductor  technologies.  The  EU  will  need 
between  6.2  and  7  million  AI-related  workers  by  2027,  with  around  60%  of  the 
workforce  requiring  AI  skills13.  In  cybersecurity,  a  gap  of  some  300  000  specialists 
has  been  identified,  while  in  semiconductors  a  gap  of  close  to  100  000  new 
professionals will need to be addressed, under current trends. Member States’ national 
roadmaps show increasing focus on digital education and lifelong learning, but efforts 
remain  fragmented  and  uneven,  with  limited  outreach  to  the  low-skilled  and 
underrepresented  groups.  Projections  indicate  that,  without  stronger  joint  action  and 
sustained investment, the EU will not reach the digital skills targets14.  

Since 2023, restructuring events and planned job reductions have gradually increased. 
Different  restructuring  events  and  short-term  changes  have  contributed  to  an 
increasing  awareness  that  urgent  action  is  required.  In  2024,  planned  job  reductions 
amounted to  approximately 65 000 across the EU which are concentrated in specific 
sectors  and  regions15.  The  automotive  industry,  telecommunications  and  postal 
services  were most affected. Between 2019 and  2024, the automotive manufacturing 
sector lost approximately 240 000 jobs across the EU16. The European steel sector is 
also facing increasing pressure, with 18 000 jobs being cut in 2024, while the chemical 
sector  has  reduced  jobs  by  approximately  15  000  in  2023  and  2024.  This  is 
particularly concerning given the sector’s critical role in the production of defence and 
space capabilities. Overall, the disruption of trade flows, weakened global demand and 
higher energy costs negatively impact the labour market. 

(10)  The transition towards climate neutrality, which already affects employment growth, is 
expected to create between 1 and 2.5 million additional jobs by 2030, if accompanied 
by  effective  policies.  The  Net-Zero  Industry  Act17  estimates  an  increase  of  350  000 
manufacturing  jobs  in  net  zero  industries  by  2030.  Moreover,  to  deliver  on  the  EU 
2030 targets for wind and solar energy, approximately 130 000 to 145 000 additional 
skilled  workers  and  an  associated  investment  in  skills  of  EUR  1.1  to  1.4  billion  by 
2030  are  needed.  In  the  context  of  building  renovations  7  million  construction  job 
openings are expected by 203518. Also, the armed forces and the defence industry are 
expected to increase employment numbers significantly, in particular for persons with 
a STEM and Vocational Education and Training (VET) background. 

(11)  The sizeable labour and skills shortages in the aforementioned sectors and in regions 
across the EU  are likely to intensify in the coming years, driven by  an ageing of the 

Shaping and strengthening European AI talent, 2025. 
The  State  of  the  Digital  Decade  2024  report  estimated  that  without  further  action,  only 59.8%  of  the 

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14 
adult population would have at least basic digital skills by 2030, far below the 80% target. 
15 
European  Commission:  Directorate-General  for  Employment,  Social  Affairs  and  Inclusion, Labour 
market and wage developments in Europe  – Annual review 2025, Publications Office of the European Union, 
2025, https://data.europa.eu/doi/10.2767/1810636. 
16 
level) (2008-2026). 
17 
Regulation  (EU)  2024/1735  of  the  European  Parliament  and  of  the  Council  of  13  June  2024  on 
establishing a framework of measures for strengthening Europe’s net-zero technology manufacturing ecosystem 
and amending Regulation (EU) 2018/1724. 
18 

Eurostat,  [lfsa_egan22d]  Employed  persons  by  detailed  economic  activity  (NACE  Rev.  2  two-digit 

The greening of the EU construction sector | CEDEFOP 

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population  and  growing  demand  for  workforce  in  sectors  of  strategic  importance  for 
the  EU,  namely  i)  advanced  digital  technologies;  ii)  clean  transition  and  industrial 
decarbonisation,  including  circular  economy;  iii)  health  and  biotech,  agriculture  and 
fisheries-aquaculture,  and  bioeconomy;  and  iv)  defence  industry  and  space.  These 
challenges  will  place  significant  pressure  on  economies  and  labour  markets, 
underscoring the urgent  need to act proactively.  It is  therefore critical  to  sustain  and 
enhance  the  EU’s  human  capital  today  through  targeted  and  agile  policies  and 
investments in education, upskilling and reskilling. By fostering a workforce equipped 
to  embrace  technological  advancements,  adapt  to  evolving  industry  needs,  and 
capitalise on emerging opportunities, the EU can not only mitigate current and future 
labour  gaps  but  also  strengthen  its  long-term  economic  resilience  and  global 
competitiveness.  In  addition,  access  to  affordable  housing  can  also  ease  labour  and 
the  development  of  human  capital  and 
educational  mobility  and  underpin 
competitiveness. 

(12)  European education and training systems face challenges in providing all learners, in 
particular  those  with  a  disadvantaged  socio-economic  background,  migrants,  persons 
with  disabilities  and  Roma  people,  with  solid  skills  foundations  that  enable  them  to 
actively  participate  in  the  labour  market.  Performance  in  mathematics,  reading  and 
science  has  declined 
in  recent  decades,  with  around  30%  of  15-year-olds 
underachieving in mathematics and 25% in reading and science in 202219. Only 16% 
of disadvantaged students performed well in reading, mathematics or science in 2022, 
declining from 21% in 2015. Students with a migrant background are twice as likely to 
leave  the  education  and  training  system  with  low  or  no  qualifications20.  These 
challenges  are  further  exacerbated  by  disparities  in  access  to  quality  and  inclusive 
education and training in less developed regions and disadvantaged, rural and remote 
areas.  Over  40%  of  eight-graders  lack  basic  digital  skills21.  Difficulties  in  childhood 
also transfer into adulthood: one in five adults struggles to read and write.  Education 
and  training  have  a  key  role  to  play  in  preparing  learners  to  become  active  citizens, 
participate  in  democratic  life,  discern  misinformation  and  engage  safely,  responsibly 
and sustainably with digital technologies. 73% of young people (15-30) declared that 
their  education  had  equipped  them  with  the  necessary  level  of  skills  to  identify 
disinformation. 

(13)  Despite the high employment rate of recent VET graduates (four in five in 2024), VET 
and  apprenticeships  continue  to  face  challenges  in  terms  of  its  attractiveness,  with 
many  vocational  programmes  suffering  from  stereotypes  and  overall  limited  esteem. 
In  2023,  3.75  million  VET  students  across  the  EU  were  enrolled  in  STEM 
programmes, which represents 36.3% of all medium-level VET pupils. This is still far 
from  the  proposed  EU-level  target  of  at  least  45%  by  2030,  which  –  at  current 
enrolment  levels  –  would  correspond  to  having  an  additional  900  000  VET  pupils 
moving  into  a  STEM  field.  In  medium-level  VET,  female  students  are  significantly 
underrepresented in STEM fields. 

(14)  At tertiary education level, despite the high demand in many STEM fields, about half 
of the Member States recorded a decline in STEM enrolment between 2015 and 2023, 
currently  standing  at  26.9%  of  students,  far  from  the  2030  target  of  having  at  least 
32%  of  students  in  STEM  fields  at  tertiary  level.  Compared  with  other  advanced 
economies,  the  EU  has  the  second  lowest  ratio  of  STEM  tertiary  graduates  per 

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21 

See OECD’s Programme for International Student Assessment (PISA). 
See OECD’s Programme for International Student Assessment (PISA). 
See International Computer and Information Literacy Study (ICILS). 

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thousand  young  people  (14.3%).  At  doctoral  level,  nearly  four  in  ten  students  are 
enrolled in STEM fields, but only a very small share in ICT. Underrepresentation of 
women  in  STEM  exacerbates  the  problem.  ICT  is  the  field  with  the  lowest  female 
participation among all education fields, with only one in five students being female. 
Drop-out from higher education remains a concern, particularly at bachelor level, with 
only  63%  of  tertiary  students  completing  a  STEM  degree  within  three  years  of  the 
theoretical end. 

(15)  The  shortage  of  qualified  teachers  across  many  Member  States,  regions,  cities  and 
remote  and  rural  areas  poses  a  significant  risk  to  the  quality  of  education.  In  2024, 
around one in five teachers22 worked in schools facing a shortage of qualified teachers, 
limiting  quality  instruction.  Moreover,  an  ageing  teacher  workforce  will  reduce  the 
number of available teachers in the years to come. In 2023, 25% of classroom teachers 
from primary to upper-secondary level were 55 years or over (equivalent to more than 
1 300 000). Beyond this, the perceived lack of attractiveness of the profession and low 
earnings  (compared  to  other  occupations  to  which  the  degree  can  give  access) 
contribute  to  teachers’  shortages  across  the  EU.  The  acute  lack  of  STEM  teachers 
contributes to the challenges. The lack of attractiveness of certain territories may also 
impact  the  retention  of  teachers  in  disadvantaged,  rural  and  remote  areas.  Teachers’ 
preparedness  to  deal  with  pupils  with  disabilities  and/or  special  educational  needs 
is  an  additional  concern.  Additionally, 
and/or  socio-economic  disadvantage 
inconsistent use of technology in schools, lack of digital skills assessment, and varying 
teachers’ preparedness  have hampered improvements  in  young people’s digital skills 
levels,  despite  increased  investments  in  digital  infrastructure  and  education  across 
Member States and regions.  

(16)  Aligning curricula with the evolving demand of the labour market remains a challenge 
for  education  and  training  systems  across  the  EU.  Sectoral  skills  academies  and 
similar initiatives, as also called for in the Clean Industrial Deal Communication23, can 
play  an  important  role  in  this24.  Some  Member  States  have  undertaken  curricular 
reforms,  however significant  gaps persist between the competencies students  acquire 
and  those  required  by  employers.  As  an  example,  while  90%  of  jobs  require  basic 
digital  skills,  only  55.6%  of  adults  in  the  EU  possess  such  skills.  This  is  also  a 
challenge  among  young  people  in  the  EU.  With  42.5%  of  eighth  graders  having 
insufficient  basic  digital  skills,  a  lot  of  progress  is  needed  to  reach  the  EU  target  of 
less than 15%25. With the rise of AI, basic digital literacy is increasingly insufficient 
and  more  and  more  new  entry-level  jobs  for  young  graduates  require  advanced  AI 
skills and strategic thinking. In this context of mismatch between skills needed by the 
labour  market  and  the  available  ones,  ensuring  labour  market  relevance  of  VET 
curricula  is  key,  also  with  the  active  involvement  of  social  partners,  and  the  same 
holds for higher education. Academic curricula should evolve to foster future-oriented, 
multidisciplinary  and  intersectoral  skills,  which  are  essential  for  developing  and 
exploiting  new  knowledge  and  technologies.  When  considering  young  people,  the 
integration  of  work-based  learning  in  the  curricula  generally  increases  employability 

In the 22 participating EU Member States in TALIS 2024. OECD (2025), Results from TALIS 2024: 

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The State of Teaching, TALIS, OECD Publishing, Paris, https://doi.org/10.1787/90df6235-en. 
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for competitiveness and decarbonisation’ (COM(2025) 85 final). 
24  

Communication of the Commission of 26 February 2025 ‘The Clean Industrial Deal: A joint roadmap 

The annual reports of the Digital Decade programme set out key reforms to be undertaken by Member 
States to address the challenges in this area. 
2023  International  Computer and  Information  Literacy  Study  (ICILS),  conducted  by  the  International 

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Association for the Evaluation of Educational Achievement (IEA). 

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of  graduates:  the  employment  rate  of  recent  VET  graduates  who  experienced  work-
based learning stood in 2024 at 84.3% compared to 69.7% for those who have not26. 
Furthermore,  only  73%  of  young  people  (15-30)  declared  that  their  education  had 
equipped them with the necessary level of skills to identify disinformation. 

(17)  Lifelong  learning  and  upskilling  and  reskilling  are  essential  for  individuals  to  keep 
pace with a rapidly changing labour market, including transitioning from declining to 
growing  sectors.  Yet,  in  2022  only  39.5%  of  adults  participated  in  learning  in  the 
previous year, more than 20 percentage points below the EU headline target of 60% by 
2030.  Low-skilled  adults,  who  would  benefit  most  from  training,  participate 
significantly  less  (11.3%).  Participation  is  lower  in  less  developed  regions  and 
stagnating areas, including rural and remote ones, as well as for vulnerable groups that 
face additional barriers to access training. Bridging this gap is critical to make lifelong 
learning  a  tangible  reality  for  all  and  requires  accelerated  and  coordinated  action  by 
Member States, businesses and social partners. Levels of financial literacy in the EU 
are  currently  very  low.  According  to  the  2023  Eurobarometer  survey,  less  than  one 
fifth (18%) of EU citizens have a high level of financial literacy. 

(18)  Future  proof  education  and  training  systems  require  adequate  funding.  Inaction  is 
costly:  the  annual  social  costs  of  early  school  leavers  globally  will  equal  to  USD  6 
trillion  by  203027.  Declining  basic  skills  levels  among  young  people  could  reduce 
long-term  multifactor  productivity  growth  by  around  3%  across  OECD  countries. 
Investment in human capital, including in population health and policies supporting it, 
contributes to higher productivity and sustainable economic growth.  

(19)  Public spending alone cannot meet the scale of upskilling and reskilling needs given 
the transformational challenges the EU is facing. For adults, the main form of learning 
is  job-related  training  (four  out  of  five  adult  learners  in  2022).  Such  training  is 
predominantly  financed  by  employers  (nearly  90%  of  all  job-related  adult  learning). 
Still, one out of three companies do not provide courses or other forms of training to 
any of their staff, with cost being one of the main obstacles cited (along with workload 
and  time  constraints).  Incentivising  effective  private  spending  on  skills  including  by 
linking  public procurement to  training commitments  encourages  companies to  take a 
greater responsibility for developing the skills of their workforce. State aid rules allow 
support for training, upskilling and reskilling by service providers, including small and 
medium-sized  enterprises,  upon  fulfilment  of  the  relevant  conditions.  The  Union  of 
Skills Communication calls for an assessment of the relevant provisions, to ensure that 
they provide better incentives for industry, including the social economy, to invest in 
upskilling  and  reskilling  of  workers.  Public-private  partnerships  can  mobilise 
additional skills investment and promote cooperation and provide better incentives for 
industry,  including  the  social  economy,  to  invest  in  upskilling  and  reskilling  of 
workers and promote cooperation. 

(20)  Despite substantial public investments in initial education over the past few decades, 
the  quality  of  education  in  some  Member  States  and  regions  has  stagnated  or 
deteriorated. To maximise the effectiveness and efficiency of investments in education 
and  skills,  impact  assessments  and  evaluations  are  key,  conducted  ideally  before, 
during and after implementation, involving all relevant stakeholders, and using timely 

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of children and youth not learning, UNESCO 

Based on European Labour Force Survey, special data extraction. 
Brunello, G., Rocco, L., Eck, M., 2024, The price of inaction: the global private, fiscal and social costs 

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and  reliable  administrative  data  wherever  possible28.  The  establishment  of  a  Social 
Investment  Knowledge  Hub  and  the  integration  of  internationally  agreed  (UNECE) 
Satellite Accounts for Education and Training29 within national accounts can improve 
policy  evaluation  and  provide  a  more  accurate  quantification  of  the  returns  on 
investment  in  human capital.  The Commission  has also  created the Learning  Lab on 
Investing in Quality Education and Training30, supporting Member States in carrying 
out  policy  evaluations  in  education  to  make  their  public  spending  on  education  and 
training more cost-effective and evidence informed.  

(21)  Accessible,  easily  understandable,  targeted  and  up-to-date  skills  intelligence  is 
essential  for  effective  and  future-proof  education  and  training  policies.  Yet,  skills 
intelligence in the EU remains fragmented, hindering well-informed decision-making. 
Despite  the  use  of  skills  forecasting  methods  across  Member  States,  significant 
challenges persist, including a diversity of taxonomies, complexity of data sources and 
methods, and limitations in terms of data reliability and granularity, which can restrict 
the usability of the information. Predictions of future demand for a given occupation 
tend  to  differ  substantially,  reflecting  different  assumptions  about  the  extent  of  task 
automation  and  the  broader  economic  and  demographic  context.  Comparing  and 
combining these sources is necessary for a better-informed policy. 

(22)  Nearly one in three employees in the EU work in jobs that do not match their skills, 
suggesting a sub-optimal utilisation of labour potential. Overly stringent regulation of 
certain  professions  and  cumbersome  recognition  procedures  create  barriers  to  entry 
and  reduce  labour  market  mobility,  thereby  contributing  to  skills  mismatches  and 
labour shortages at both national and EU level.  

(23)  European employers face difficulties in recruiting workers from outside the EU. Fewer 
than one in ten small and medium-sized enterprises have recruited workers from third 
countries in response to skills shortages, and most that have done so found the process 
difficult. Third-country nationals often encounter fragmented and slow procedures for 
the  recognition  of  their  qualifications  and  experience  issues  of  overqualification  and 
skills mismatches. Overqualification rates for third-country nationals can be twice as 
high as for EU nationals. 

HEREBY RECOMMENDS that Member States act in the period 2026-2027, to: 

1. 

Address skills shortages in strategic sectors 

• 

Steer actions to address skills shortages, with a focus on occupations, notably 
requiring  science,  technology,  engineering  and  mathematics  (STEM)  skills, 
including  ICT  and  AI,  in  sectors  of  strategic  importance  (digital  and  clean 
technology,  circular  economy  and  industrial  decarbonisation,  health  and 
biotech,  agriculture  and  fisheries-aquaculture,  bioeconomy,  defence  industry 
and space). 

• 

Strengthen fast-track as well as longer-term delivery of future-proof and labour 
importance,  by  fostering 
market-relevant  skills 

in  areas  of  strategic 

28 
See Council Conclusions, The role of labour market, skills and social policies for resilient economies, 
20 June 2024 and the  Voluntary Guiding Principles for EU Member States for evaluating economic effects of 
reforms and investments in the labour market, skills and social policy domains. June 2024. 
29 
Satellite  accounts  are  supplementary  frameworks  that  expand  on  the  core  national  accounts  by 
providing additional detail on specific areas. Satellite Accounts  on Education and Training quantify investment 
in human capital by measuring expenditure on formal education, vocational training, and non-formal learning. 
30 

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partnerships  between  education  and  training  providers,  public  employment 
services,  social  partners  and  individual  businesses  as  well  as  (local)  public 
bodies.   

• 

Reduce  barriers  to  entry  to  professions  and  ensure  faster  recognition  of 
qualifications in strategic sectors for EU and third-country nationals. 

2. 

Strengthen basic skills to build solid foundations for higher competitiveness 

• 

• 

• 

• 

Strengthen  the  acquisition  of  numeracy,  literacy,  science,  digital,  citizenship 
and  financial  literacy  skills  from  early  age  and  throughout  all  levels  of 
education with particular attention to socio-economically disadvantaged groups 
and persons with  disabilities, to  reach the  target  of less than 15% of 15-year-
olds underachieving in basic skills.  

Ensure  sufficient  incentives  for  the  attractiveness  of  the  teaching  profession, 
especially for STEM subjects.  

Strengthen  students’  and  lifelong  learners’  digital  skills,  including  Artificial 
Intelligence  (AI)  literacy,  apply  digital  testing  tools  to  monitor  progress,  and 
train teachers for computer assisted learning.  

Encourage  the effective  and responsible use of AI. Address  the impact  of the 
use of digital devices on academic performance, and mental and physical well-
being.  

3. 

Strengthening Vocational Education and Training (VET) for competitiveness 

• 

• 

• 

Boost the quality and attractiveness of VET and apprenticeships, including by 
tackling  negative  perceptions,  strengthening  inclusiveness  for  disadvantaged 
groups and addressing gender stereotypes, notably in STEM programmes. 

Create  and  implement  strategies  to  reach  the  2030  targets  of  at  least  45%  of 
initial medium-level VET learners enrolled in STEM fields, at least one out of 
every  five  students  should  be  female,  and  of  at  least  12%  of  VET  learners 
participating in learning experience abroad.  

Promote  a  sufficient  supply  of  STEM  teachers  and  trainers  and  incentivise 
work-based learning in cooperation with companies. 

4. 

Improve tertiary education outcomes in STEM 

• 

• 

Increase  capacity,  relevance  and  attractiveness  for  young  people  of  tertiary 
education STEM programmes (including higher-level vocational programmes), 
in ICT and AI fields, in areas with major labour gaps and in strategic areas.  

Promote AI literacy and strategic thinking of graduates, foster transdisciplinary 
approaches  and  enhance  the  internationalisation  of  tertiary  level  STEM 
programmes,  particularly  through  the  reinforcement  of  joint  transnational 
degree programmes in engineering and STEM fields. 

5. 

Investment in education and skills 

• 

Promote  effective  and  efficient  public  spending  on  education  and  skills 
commensurate  to  the  identified  challenges  and  agreed  objectives  and  targets, 
including  by  leveraging  on  cohesion  policy  funds,  including  the  European 
Social Fund Plus.  

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• 

• 

• 

Promote  private  investment  in  upskilling  and  reskilling  and  the  use  of  the 
social investment and skills policy window of InvestEU. 

Regularly monitor and evaluate investments in education and skills at national, 
regional  and  local  levels,  using  solid  and  tailored  impact  assessment  and 
evaluation  methodologies.  Rely  where  considered  useful  on  the  Voluntary 
Guiding  Principles  endorsed  by  the  Council31,  to  inform  evidence-based 
policymaking.  

Increase  the  use  of  administrative  data  to  assess  the  effectiveness  and 
efficiency of public and private spending in education and training. 

6. 

Skills intelligence for mastering labour market transitions 

• 

• 

Develop  and  apply  methodologies  for  the  use  of  big  data  and  AI,  to  provide 
better and timelier skills intelligence, building on and complementing existing 
quantitative and qualitative skills intelligence sources. 

Further  integrate  and  increase  the  regular  use  of  skills  intelligence  in  the  (re-
)design  of  national,  regional  and  local  skills  and  economic  development 
strategies, in the areas of career guidance, reorientation and job transitions, as 
well as in future-proofing curricula design and development. 

Done at Strasbourg, 

For the Council 
The President 

31 

https://data.consilium.europa.eu/doc/document/ST-10779-2024-INIT/en/pdf 

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