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The Skills2Capabilities project is about understanding how skill systems across Europe can reduce the level of skills mismatch in the labour markets. The study addresses this from both a demand side and a supply side perspective to identify how skill systems can better respond to meeting skill demands in a more fluid labour market environment. The project is a collaboration between research institutions in eight European countries. Fafo leads a work package where we will compare countries in how selected VET qualifications adjust to technological change, and how work content/organization interact with changes in VET qualifications.

Skills and labour shortages have become more obvious in more rapidly changing product and labour markets. These challenges have been exacerbated by demographic changes which reduce the labour force and increase needs, coupled with the need for a rapid transition into a greener economy. Workers, for their part, are affected by increasing insecurity. Job losses due to automation, new forms of employment and fast-rising costs of living are increasing the working precariat in Europe, but also affecting the middle class.

How do skill systems need to develop if they are to support people in labour market transitions – i.e. between jobs, employers or sectors – and thereby reduce the level of skill mismatch which might otherwise arise?

The Skills2Capabilities project addresses the question of how skill systems can better respond to skill demands in a more fluid labour market environment. The research will provide decision-makers in government and education authorities with information which allows them to gain a better understanding of how to meet the emerging skill needs - of both the economy and society.

The project is funded with approximately 2.4 million Euros over a three-year period starting in 2023. Coordinated by 3s Austria, it involves partners from Bulgaria, Estonia, Finland, Germany, Norway, the Netherlands, Italy and the United Kingdom.

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