CAPÍTULO 2 ICYD 2023

The Year of Skills: empowering Europe's workforce for a sustainable future

Stefan Olsson, Deputy Director General, DGEMPLOYMENT, European Commission

with the required skills. The challenges that the labour market faces are driven by general trends such as the green and digital transitions or demographic change. Also, the COVID- 19 pandemic and Russia’s war of aggression in Ukraine have had heavy labour market impacts. While upskilling and reskilling more people with relevant labour market skills is urgently needed, participation of adults in learning remains low. One of the three key targets of the European Pillar of Social Rights Action Plan 1 states that at least 60% of all adults should be participating in training every year by 2030 2 . Promoting participation in adult learning is also fundamental for the social inclusion of individuals. For instance, important services are increasingly available only online which means that there is the risk of leaving behind those people who do not have the basic digital skills to access them. Still, to address labour market needs it will not be sufficient just to activate more people for the European labour market. The size of the European working-age population (population aged from 15 to 64) is expected to decrease from 64% in 2019 to 56% in 2070. Therefore, the EU needs to become a more attractive choice to people coming from other parts of the world with necessary skills. The opportunities and challenges that we face in the labour market are put in focus in this European Year of Skills that is built around four specific objectives: • To promote greater, more effective and inclusive investment in training and upskilling to tap the full potential of the European workforce and to help people move from one job to another. • To ensure the matching of skills with labour market needs, also in cooperation with the social partners and enterprises. • To match people’s aspirations and skills to labour market opportunities, especially for the green and digital transition and economic recovery. The idea is to activate more people for the labour market, particularly women and youth, especially those not in education, employment or training. • To attract people from countries outside the EU with the skills that are needed, also by strengthening learning 1. The European Pillar of Social Rights Action Plan - Employment, Social Affairs & Inclusion - European Commission (europa.eu) 2. This is set at EU level and it is the same target for Spain: Pillar_Na- tional_targets-2022_tables_final.pdf

opportunities and mobility and facilitating the recognition of qualification.

The European Year of Skills puts skills in the spotlight: investing in skills development is crucial for sustainable economic growth, social cohesion and individual well- being. In a rapidly changing labour market, characterized by technological advancements and the shift towards a greener economy, traditional skills alone are no longer sufficient. There is a mismatch in the labour market where skill shortages and the risk of leaving some people behind are of particular concern. Therefore, the EU aims to foster a culture of upskilling and reskilling, ensuring that individuals can continuously acquire, update, and apply new skills throughout their careers. Moreover, skills development plays a vital role in addressing societal challenges, such as unemployment, inequality, and the digital divide. Equipping individuals with the right skills is key for making the green and digital transitions fair, ensuring that nobody is left behind. Ultimately, the EU’s focus on skills is driven by the conviction that a well-prepared workforce is essential for building a sustainable and prosperous Europe. This contribution will delve into the context and goals of the Year of Skills, understanding it within a broader EU strategy defined in the European Skills Agenda and providing examples of key actions that are being undertaken. For example, Individual Learning Accounts, Micro-credentials, Centres of Vocational Excellence, the European Alliance for Apprenticeships and the Pact for Skills. Finally, the contribution will also explore the role that the skills play in the Green Deal Industrial Plan and the long-term competitiveness of the EU.

Finally, the Year is also helping the different countries in the EU to identify better what are the skills missing in a certain national and regional context, and what exactly is that needs to be done to address that challenge.

A Year within a European Skills Agenda

The European Year of Skills is embedded into the broader strategic framework of the European Skills Agenda. The Skills Agenda aims to tackle the skills challenges faced by EU member states and ensure the availability of a highly skilled workforce capable of driving economic growth and innovation. Additionally, the Skills Agenda aligns with the first principle of the European Pillar of Social Rights, which states that “Everyone has the right to quality and inclusive education, training, and lifelong learning in order to maintain and acquire skills that enable them to fully participate in society and successfully manage transitions in the labour market.” The Skills Agenda calls for collective action, bringing together businesses, social partners, and stakeholders to commit to working collaboratively. This collaboration is particularly relevant within the different EU industrial sectors. The Skills Agenda also aims to ensure that skills lead to employment opportunities and foster an environment where lifelong learning is the norm. Moreover, it sets ambitious objectives for upskilling and reskilling to be achieved by 2025. Overall, the overarching goal is to ensure that the European workforce is equipped with the necessary skills to adapt to the evolving demands of the labour market and to promote innovation and economic resilience. The European Year of Skills plays a crucial role within this agenda, providing a dedicated platform to promote and celebrate skills development throughout the EU.

The European Year of Skills was officially launched on Europe Day, 9 May, and will run until May 2024.

The context for a European Year of Skills and its goals

European Years are there to highlight a specific topic, raising awareness and generating momentum. There are strong reasons that help us to understand why this Year the President of the Commission proposed during the 2022 State of the Union Address that the topic would be skills. The available labour workforce is shrinking, what makes European companies, especially small and medium enterprises (SMEs) struggle to find workers with the right skills. In 2019, 77% of companies struggled to find employees

Key actions for skills development in the UE

In its commitment to the importance of skills development, the EU works on concrete actions that will lead to a successful green and digital transition that leaves no one behind. They are many and very diverse, ranging from policy orientations, specific tools and use of funds to establishment of networks, promotion of mutual learning activities and communication. In

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