In a rapidly changing world in which there are many competing demands, it is imperative to establish priorities and formulate clear strategic plans for developing and effectively using skills. Based on the OECD Skills Strategy framework, the OECD has undertaken 25 skills strategy projects since 2014 that support countries to take a strategic and comprehensive approach to strengthening the development and use of skills throughout the life course and improving governance of skills systems. Through these tailored approaches, countries can identify key skills policy priorities and devise tailored policy recommendations that suit their unique contexts. These evidence-based recommendations are informed by international best practices, data analysis and literature as well as by the insights of domestic stakeholders on what would work best in their local context.
Skills strategies
Skills are crucial to thrive in a world being reshaped by the green and digital transitions. To seize the opportunities of the future, countries must build skills systems that equip people with the right skills, promote lifelong learning, and provide opportunities for people to use their skills fully in the economy and society. Achieving this aim requires coordination and collaboration across all of government as well as between government and stakeholders.
Key messages
To ensure that skills strategies have a lasting impact, countries must take proactive steps to ensure their effective implementation. The OECD has worked with more than 12 countries on implementation guidance projects that support them to develop detailed policy reforms or develop strategic policy implementation plans outlining policy priorities, targets, benchmarks, objectives, timelines, responsibilities, and monitoring and evaluation mechanisms. A diverse range of actors are consulted throughout these projects, including government entities, education and training providers, employers and unions, and others, to tap into their expertise and build commitment to act.
Countries within a given region often confront similar economic, social and environmental challenges and opportunities, and skills policies play an important role in overcoming these challenges and seizing these opportunities. By collaborating with each other on regional skills strategies, countries can identify shared policy priorities and solutions, facilitate peer learning, and foster greater regional cooperation. Through regional collaboration, countries can strengthen their skills policies and collectively work towards strengthening the region’s skills, thereby attracting investment facilitating economic, social and environmental development.
Evidence on what skills policies are most effective in a given context is critical for helping countries to strengthen their skills outcomes across the life cycle. The OECD plays a crucial role in this regard by expanding and refining knowledge base on skills policies and supporting frameworks that can help countries respond effectively to the digital and green transitions, demographic change, and other trends impacting on skills needs. Examples of such policies include those relating to skills financing, quality assurance, stakeholder engagement, and the governance of skills systems. Through evidence-based analysis, including desk research, cross-country comparisons and case studies, the OECD evaluates the effectiveness of different policies to identify best practices. By drawing upon these insights, countries can develop more informed and effective skills policies tailored to their specific contexts and needs.
Countries can benefit greatly from exchanging information about their experiences and policies Countries often confront similar challenges with respect to the development and effective use of their peoples’ skills and, as a consequence, there is much they can learn from sharing with each other their experiences and best practices. The OECD Centre for Skills offers valuable peer learning opportunities, including the biennial ministerial OECD Skills Summit, the annual Skills Strategy Peer Learning Workshop, and other targeted peer learning events. These initiatives enable countries to exchange experiences and insights, learn from each other, and identify effective strategies for addressing common challenges. By participating in such peer learning activities, countries can strengthen their skills policies and contribute to the continuous improvement of skills development worldwide.
Context
Higher levels of skills are increasingly important for participation in the labour market
Labour markets across the OECD are becoming increasingly polarised, marked by a rise in high-skilled employment and a decline in medium and particularly low-skilled employment. From 2009 to 2023, the surge in high-skilled employment was notably evident in countries like Austria and Luxembourg, both witnessing an increase of nearly 20 percentage points. Conversely, countries such as Portugal and Greece experienced a significant decrease in low-skilled employment, with a drop of 24 and 21 percentage points respectively.
This trend highlights the necessity of ensuring that a greater number of young people develop the advanced skills that will become increasingly vital for labour market participation and underscores the importance of ensuring that adults have opportunities for re-skilling and up-skilling throughout their lives.
Many adults lack the skills they need to participate fully in the labour market and society
Too many adults are not acquiring the necessary skills for full and productive participation in the labour market and society. In OECD countries, a substantial percentage of adults display low foundational skills, as indicated by the OECD Survey of Adult Skills (PIAAC). On average, 24% of adults in OECD countries possess very low skill levels (level 1 or less in PIAAC), and the percentage of low-skilled adults exceeds 50% in countries such as Chile, Mexico and Türkiye.
Strengthening skill development in youth and promoting lifelong learning are essential to ensure that individuals and countries possess the required skills to adapt to a digital and green future, and to flourish in the years to come.
Greater collaboration across government and with stakeholders is needed to build more effective skills systems
To ensure individuals acquire necessary skills and fully utilise them in our economies and societies, a co-ordinated effort is required. This involves collaboration across government sectors and stakeholders, including education and training providers, employers, unions, and non-profit organisations. Over the past decade, the OECD has been supporting countries in developing National Skills Strategies (NSS). These strategies unite all skill-related ministries, such as education, labour, and others, along with stakeholders to collaboratively address skill shortages and equip individuals to prosper in a digital and green world.
A survey conducted by the OECD, completed by 24 EU countries that have developed an NSS, reveals that in all cases these strategies involved ministries responsible for education and labour and, in most cases, also ministries responsible for economy and finance, as well as regional/local governments.
