A Skills-First Labour Market

• July 3, 2026
• admin

In this report, the OECD argues that labour markets across its member countries are increasingly moving away from relying solely on formal qualifications towards placing greater emphasis on demonstrable skills. While degrees remain an important foundation for developing knowledge and competencies, they are no longer sufficient to reflect workers’ capabilities or respond to rapidly changing labour market needs. As technological change, the green transition, and new forms of work reshape skill demand, a stronger focus on skills can help address talent shortages, reduce skills mismatches, and widen opportunities for individuals whose competencies have been acquired through work experience or non-formal learning.

The report presents skills-first approaches as a systemic shift rather than simply removing degree requirements from job advertisements. It defines this transition around two complementary pillars: continuous skills development throughout people’s careers, and effective skills recognition through mechanisms that allow competencies to be identified, validated, and valued across different contexts. These pillars must be supported by enabling conditions, including shared skills frameworks, appropriate governance arrangements, data infrastructure, and a cultural shift among employers, education providers, and policymakers.

Finally, the OECD emphasises that no country has yet fully implemented a coherent skills-first system, although many have already established important foundations. Progress varies across countries, with different strengths in learning systems, skills recognition, and institutional support, underscoring that there is no single model for implementation. By examining emerging practices and policy experiences, the report aims to guide governments, employers, training providers, and other stakeholders in developing labour markets that better connect learning, work, and career progression through a stronger focus on skills.