The tech sector is a cornerstone of today’s economies, contributing to innovation, productivity and growth across various industries. It drives advancements in artificial intelligence and cybersecurity, which are becoming crucial for both the functioning of businesses and daily life, and it can also contribute to catalysing the transition to net-zero emissions by developing new environment-friendly tools and products. Yet, while the tech sector is rapidly expanding and emerging as a strategic employer, it also faces significant talent shortages, with demand for skilled professionals outpacing supply. Education and training institutions struggle to keep up with industry needs, and the gap is exacerbated by rapid technological advancements requiring specialised knowledge.
Addressing these talent shortages is crucial for sustaining innovation and maintaining economic momentum in today’s tech-driven societies. However, both policy makers, employers and training providers face several challenges in tackling this issue. For example, aligning educational and training curricula with the fast-evolving tech landscape has proven challenging for training providers. Furthermore, ensuring equitable access to employment and learning opportunities in the tech sector is a concern, as occupational segregation and stereotyping can limit the potential talent pool. Firms also face important obstacles in recognising non-standard learning pathways during recruitment, which could otherwise expand their talent pool to include candidates without formal qualifications or degrees.
Creating effective policies to bridge talent shortages in tech requires a multifaceted approach and collaboration between governments, education and training institutions, and the private sector. This report focuses, in particular, on three different strategies to address skills shortages: skills-first approaches to hire, train and promote based on skills and not on qualifications or seniority (Chapter 1); micro-credentials for rapid reskilling and upskilling (Chapter 2); and inclusive strategies to reach out to a broader and more diverse set of candidates thus broadening the talent pool (Chapter 3).
This report was prepared by the Elif Bahar and Michele Tuccio from the Skills and Future Readiness Division of the Directorate for Employment, Labour and Social Affairs (ELS). Gamze Igrioglu and Roland Tusz provided valuable inputs. The work was carried out under the supervision of Glenda Quintini (Head of the Skills and Future Readiness Division). The report benefited greatly from comments by Stefano Scarpetta (Director of ELS) and Mark Pearson (Deputy Director of ELS), as well as discussions with the members of the EU-US Trade and Technology Council Talent for Growth Task Force. It also benefited from the insights of numerous participants in three workshops organised virtually between October 2023 and February 2024. Special thanks are given to Chiara Riondino, Vera Leuner and Michael Horgan (European Commission’s Directorate‑General for Employment, Social Affairs and Inclusion) for their support and feedback.
This work was produced as part of the project “OECD support for Talent for Growth Task Force” (VS‑2023‑0049) which was funded by the European Union (European Commission’s Directorate‑General for Employment, Social Affairs and Inclusion).
The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD member countries or the European Union.