Changing labour markets: How to prevent a mismatch between skills and jobs in times of transition - Background paper

What we do at work is changing. Not least due to digitalisation and automation, the transition towards climate neutrality and net-zero industries as supported by the Green Industrial Plan, but also as a result in a shift in EU economies and labour markets from industrial production towards a more knowledge-intensive service economy. In addition, there is an increasing need for health and care professionals due to demographic ageing and changing societal structures. If the task content of work changes or new jobs arise, the skills required to enter the labour market and to engage in work over an extended working life also need to change. 

This paper explores how policymakers, employers, and other relevant stakeholders such as sectoral organisations and social partners could promote, stimulate, and facilitate individuals’ possibilities for re- and up-skilling to meet employers’ skills demands. If companies can access the skills needed, this has a positive effect on their productivity and competitiveness.