Empowering the Workforce in Context of a Skills First Approach

This report explores the emergence of a skills-first approach in labour markets in OECD countries, and what opportunities and challenges arise from the adoption of skills-first approaches in light of demographic shifts and the green and digital transition. Through original data analysis and the examination of case studies from OECD countries, the report illustrates when and how individuals signal their skills, and to what extent employers adopt skills-based hiring practices, and whether these efforts allow them to reach a broader and diverse talent pool. A skills-first approach can lead to better job matching and adaptability, but barriers to its successful adoption remain. These include unequal access to digital tools, challenges in validating skills, and employers' reluctance to trust non-traditional credentials. Its novelty also raises questions about accessibility and potential impacts on job quality and workplace conditions. The report highlights key policy actions to support the adoption of skills-first practices, calling on governments to standardise skills recognition, invest in lifelong learning, improve labour market intelligence, and lead by example by adopting skills-first practices in the management of the public sector workforce.