EU launches ‘Union of Skills’ to tackle growing skills gap and boost competitiveness

The European Union has officially launched the Union of Skills at the EU Social Forum, marking a key milestone in the bloc’s efforts to address Europe’s widening skills gap and strengthen its industrial competitiveness.

This initiative, one of the flagship priorities of the new European Commission’s first 100 days, aims to enhance human capital across the EU by supporting skills development and mobility, while promoting lifelong learning opportunities for all.

The Union of Skills is designed to empower Europeans at every stage of life – from schoolchildren to those approaching retirement – with the tools they need to thrive in today’s rapidly changing economy. Central to this initiative is a Basic Skills Support Scheme pilot, aimed at improving core literacy, numeracy, science, and digital capabilities. Complementing this is a Skills Guarantee pilot, which will offer adults regular opportunities to upskill and reskill throughout their careers, particularly those at risk of unemployment or affected by restructuring.

To further enhance Europe’s competitiveness, the Union of Skills will also introduce a Skills Portability Initiative, making it easier for businesses to recruit talent across EU borders and facilitating the recognition of skills and qualifications regardless of where they were acquired.

Attracting global talent

Alongside boosting skills within the EU, the Union of Skills also seeks to make Europe a magnet for global talent. Through a ‘Choose Europe’ action, the EU will actively attract top talent from around the world, offering attractive scientific working conditions and career prospects. This will initially take the form of a Marie Skłodowska-Curie Actions pilot call, with €22.5 million allocated to support researchers.

In addition, the Commission plans to establish an EU Talent Pool, enabling recruitment from outside the EU for roles facing severe shortages. This will be supported by a new Visa Strategy, which will ease the entry of top students, skilled workers, and researchers into the EU.

Focus on STEM and digital skills

Education will play a pivotal role in the success of the Union of Skills. To build a strong foundation, the initiative will be supported by an Action Plan on Basic Skills and a STEM Education Strategic Plan. These will promote careers in science, technology, engineering, and maths, with a specific focus on encouraging more girls and women to pursue these fields.

The EU has also set new skills targets for 2030, including:

• Reducing underachievement in literacy, maths, science, and digital skills to below 15 per cent, while ensuring at least 15 per cent of students achieve top performance in these subjects;
• Ensuring at least 45 per cent of students in initial vocational education and training (VET) are enrolled in STEM subjects, with at least 25 per cent of these being female;
• Raising the proportion of students pursuing STEM degrees at university level to at least 32 per cent, with at least 40 per cent of these being female;
• Boosting the proportion of students enrolled in ICT PhD programmes to five per cent, with at least one-third being female.

The EU also wants to instil a culture where upskilling and reskilling becomes a regular feature of working life. The Skills Guarantee pilot will target workers affected by economic restructuring, helping them transition into new sectors or roles.

The Commission also intends to expand the network of EU Skills Academies, aligning training provision with the evolving needs of businesses, particularly those driving the green transition and the Clean Industrial Deal.

Governance and monitoring

Delivering on the Union of Skills will require strong governance and cooperation between Member States, businesses, and social partners. At the heart of this is the European Skills Intelligence Observatory, which will provide real-time data and foresight on skills trends and emerging shortages, particularly in strategic sectors.

A new European Skills High-Level Board will also be established, bringing together education and training providers, business leaders, and social partners to provide direct insights to EU policymakers and ensure a coordinated approach to skills development.

To embed these efforts within wider economic policy, the Commission intends to propose a new EU-27 Recommendation on education and skills, integrating human capital development into the European Semester cycle – the EU’s framework for economic policy coordination.