1st SKILLAB Policy Meeting: Addressing Skills Gaps and Labor Market Mismatches in the EU

24/02/2025

On February 21st, the first SKILLAB Policy Meeting took place in Thessaloniki, Greece, in a hybrid format, allowing both in-person and online participation. The event brought together key stakeholders, policymakers, cluster projects, industry experts, and practitioners to address critical skills shortages in the EU labour market, with a special focus on digital skills and the challenges of cross-border mobility.

The SKILLAB Policy Meeting served as an important platform for networking and exchanging ideas. The discussions provided actionable insights into EU strategies for bridging skills gaps, showcased best practices from industry and cluster projects, and formulated policy recommendations for education and workforce transformation.

The SKILLAB project plays a crucial role in helping policymakers, industries, and educators address the widening skills gap in various sectors. It aims to provide insights into the skills needed for individuals to successfully enter the workforce, aligning educational curricula with real-world labor market demands.

One of the main contributions of SKILLAB is the skills mapping process, which connects industries and helps policymakers design curricula and initiatives that support lifelong learning (LL) for citizens. Through this approach, SKILLAB aims to address sector-specific shortages and promote the use of micro-credentials to help workers update and validate their skills.

Irene Mandl, Head of the Unit at the European Labour Authority (ELA), presented insights on the role of labour market mobility in tackling skills mismatches. She emphasized that return mobility (workers returning to their home countries after gaining international experience) has been a growing trend, especially post-COVID. This phenomenon helps counterbalance brain drain and contributes to a better-equipped workforce.

Ilias Livanos, an expert at CEDEFOP, discussed the skills shortages that have been consistently reported across the EU, especially in high-skilled occupations such as doctors, engineers, and ICT specialists. He noted that while economic theory suggests that a labour shortage would naturally lead to an increase in education and training opportunities, the reality is often more complex. It requires strategic interventions to align supply and demand, with a special emphasis on mobility as a solution to ease labour market mismatches.

Carlo Scatoli from the European Commission outlined the EU’s new agenda for skills in the context of the European Year of Skills. His presentation focused on the four key pillars of the upcoming communication on the “Union of Skills” strategy:

• Building Skills: Developing the skills needed for quality work and a quality life.
• Upskilling and Reskilling: Helping current workers update their skills for new sectors.
• Circulating Skills: Recognizing and moving skills across EU borders.
• Talent Pool: Attracting skilled professionals from outside the EU.

He also highlighted the importance of micro-credentials, which provide a flexible way for workers to gain specific, recognized competencies that can support their career progression.

The meeting also addressed the impact of skills gaps on employees, organizations, and the economy. Panagiotis Gkorezis, Associate Professor at the Department of Economics, AUTH, discussed the significant consequences of skills mismatches, including job insecurity, limited career growth, and increased stress for employees. For organizations, the impact includes high turnover, increased recruitment and training costs, and lower productivity. On a broader scale, the economy suffers from higher unemployment rates and reduced growth potential.

Roundtable Discussion: Aligning EU and Sister Project Priorities
During the event, Professor Georgios Panos from the TRAILS project participated in a roundtable discussion that focused on aligning EU priorities with sister projects. The discussion included:

• Creating common definitions and frameworks for skills recognition across the EU.
• Improving skill intelligence through data-driven insights into job market trends.
• Improving job quality, addressing poor working conditions and job satisfaction.

A key point raised during the discussion was the challenge of making the ESCO (European Skills, Competences, Qualifications, and Occupations) framework more relevant and usable in the real world. Professor Panos emphasized the need to raise awareness and improve its application in both job advertisements and training programs to better align with actual labour market needs.

Additionally, the TRAILS project partners, including EARLLAL (online) and Professor Georgios Panos (in person), actively participated in the discussions. As TRAILS is a sister project to SKILLAB, the partners closely follow the developments of the SKILLAB project, contributing their expertise and ensuring alignment between the two initiatives in addressing the EU’s skills challenges.

The 1st SKILLAB Policy Meeting was a valuable opportunity for stakeholders to come together, share insights, and identify actionable solutions to the EU’s skills mismatch challenges. As the discussion continues and further policy recommendations are developed, the meeting has set the stage for a stronger collaboration across industries, education providers, and policymakers to ensure that the EU labor market is well-equipped to meet the demands of the future.

For more information about the SKILLAB project and its work in addressing skills gaps, stay tuned for updates and the upcoming release of the First SKILLAB Policy Brief.