Have the skills but not the diploma? The EU is putting greater emphasis on abilities

Europe’s labour markets are going through a number of transitions. While the digital and green transitions are creating new opportunities, the shrinking working-age population is contributing to shortages in healthcare, ICT, construction and hospitality.

In this challenging environment, employers may be overlooking capable candidates by focusing too heavily on formal qualifications. Skills that can be applied across different roles and sectors are often harder to identify (e.g. problem-solving, teamwork, digital literacy), despite being increasingly valuable in a changing labour market.

To address this challenge, the EU is promoting skills-based approaches to employment, encouraging employers and Public Employment Services (PES) to focus more on what people can do rather than the qualifications they hold.

The future of Public Employment Services

In the 27 EU Member States, Norway, Iceland and Liechtenstein, PES are the authorities that connect jobseekers with employers. They support matching supply and demand on the labour market through information, placement and active support services. Their adoption of skills-based approaches has an important role to play in the aforementioned transitions. Using such approaches can support labour mobility across sectors and help make jobseekers more resilient in Europe’s rapidly changing economy.

So, how can how PES include skills-based principles into their daily operations?

A recent workshop hosted by the European Network of Public Employment Services concluded the following:

A common language for skills is essential. Current differences in the way jobseekers, employers and PES across Europe describe occupations and skills make it harder to connect people to opportunities.
Human interpretation is important. AI should complement PES counsellors, not replace them.
Employers are key partners. Working with them can help to identify real skills needs and refine training and recruitment pathways to make the EU labour market more competitive.
Inclusion remains central. Skills-based approaches should support all jobseekers, including those with low (or no) qualifications, older workers and migrants.

PES making it happen

PES across Europe are making progress in several areas:

Several PES, including in Belgium, Luxembourg and Sweden, are using AI-assisted systems that focus on matching skills rather than occupations.
More and more often PES, for example in Austria, are empowering jobseekers by helping them identify their skills and making them visible, even when they lack formal qualifications.
They’re also closing skills gaps through reskilling and upskilling. By creating targeted training offers (Czechia, Estonia and Croatia), they’re supporting the development of skills that respond to labour market needs.

Skills-based methods are therefore central to the future of PES services. Naturally, there’s still work to be done: aligning national and EU systems, investing in digital infrastructure, training staff and forging stronger bonds with employers and educational institutions. But a future where skills and qualifications are both recognised has the potential to create a more inclusive and resilient labour market.

The key priorities of PES align with EURES’ strategy for fair and transparent labour mobility for all. Read about how EURES supports jobseekers with disabilities.

Related links:

Thematic review workshop

European Network of Public Employment Services

How EURES supports jobseekers with disabilities

Read more:

European Job Days

Find EURES Advisers

Living and working conditions in EURES countries

EURES Jobs Database

EURES services for employers

EURES Events Calendar

Upcoming Online Events