Debate: Addressing urgent skills shortages and finding the right talents to boost job creation
Date: WEDNESDAY, 17 JANUARY 2024
Speaker: Nicolas Schmit
Language: EN

We have already debated this issue of quality of jobs and especially also the skills shortages in a competitive social market economy this morning. It’s true that skills shortages are not only undermining Europe’s competitiveness and resilience, they are also a risk for social cohesion. In a recent Eurobarometer survey, two out of three small and medium-sized companies said that labour shortages are holding back their business, preventing them from investing and creating more jobs. The economic cost is huge. It is estimated that about 2% of GDP is lost due to skills shortages. When I say job creation, I mean creation of good jobs. Having the skills needed on the labour market will precisely allow for access to better jobs. The main answer is to train people and train them now. We need it for the digital and the green transition. We have even dedicated one EU headline target on skills, namely that 60% of adults train at least once every year. This is not new. Lifelong learning goes back to Jacques Delors, who already emphasised this need even before becoming Commission president, and in his famous Stockholm speech at the ETUC conference, he announced the right for permanent training that has materialised in principle number one of the European pillar of social rights. To mobilise and encourage actions at all levels, especially in Member States and at local level, the Parliament and the Council established the European Year of Skills. The 2 000 events organised across Europe so far show that there is a strong awareness of how important lifelong learning is. Of course, we do not start from scratch. The 2020 European skills agenda has laid out a roadmap on how to boost skills policies and has led to several very concrete actions. We have the tools and funding available, with EUR 65 billion supporting training through the European Social Fund Plus and the Recovery and Resilience Facility. The 2022 Council recommendations on individual learning accounts and micro-credentials promote more adult skills development, which should be supported by good guidance to both workers and companies, especially small enterprises. The 2023 Council recommendation on digital skills underlines the need for better strategies to support the development of digital skills at all levels and for all groups. Also, skills partnerships are an effective approach. Those established under the pact for skills have already upskilled 2 million workers. They are bringing together all relevant stakeholders in each industrial ecosystem. We should also recognise that sometimes, skills are available, but they are not just visible. People develop useful skills at the workplace through volunteering, live experience, sport, leisure. Validating these skills will help people to find jobs and companies to create and fill jobs. Recognising skills and giving them value is as important as developing skills. Companies that need skills should better identify the skill they need. Those skills may very well be already available among their staff. Also, when recruiting new staff, it is important to identify what applicants can do – not only look at their degrees or certificates or the job title of any previous experience. Recruitment should also be based on skills first. This helps companies find people with the skills they need, also among groups who are less represented on the labour market, such as women, the low qualified inactive monetary groups, older workers, people with disability. Skilled migrants can contribute to address labour shortages, such as through the skills and talent mobility package, but this must be part of a holistic approach. The message of the European year of skills is clear: skills shortages can be addressed if we recognise that skills matter and we need to develop them throughout our lives. Skills indeed matter. They are an investment, not a cost. This is the basic message of the year, and I’m grateful for the continued support by your Parliament in the common endeavour.