A new Thematic Paper has been published by the European Network of Public Employment Services (PES Network) examining how PES across Europe are adopting skills-based approaches to improve job profiling, job matching, job vacancy description, reskilling and upskilling.
The paper ‘Skills-based Approaches in Public Employment Services Processes and Activities’ draws on discussions from the Thematic Review Workshop (TRW), which took place on 16 and 17 September 2025 in Luxembourg. Hosted by the Luxembourg PES (ADEM), the TRW brought together representatives from 23 PES across Europe, the European Commission, the European Skills, Competences, Qualifications and Occupations (ESCO) team and a Thematic Expert.
Europe’s labour markets are being reshaped by the triple transitions (green, digital and demographic transitions) with persistent shortages in sectors such as health, ICT, construction and hospitality. Skills-based approaches are central to navigating this shift. While traditional recruitment often relies on formal qualifications, such as university degrees or vocational diplomas that certify a specific level of education, a skills-based approach focuses on the actual competences an individual possesses. This method recognises that valuable abilities are often acquired through practical work experience, volunteering or non–formal training, even if they are not reflected in a formal certificate. For PES, this approach is essential, as it allows for improved matching in a volatile economy, broadens the talent pool by uncovering ‘hidden’ talent and facilitates smoother transitions for workers moving between sectors.
Several PES shared concrete examples of progress including Luxembourg, Belgium-VDAB and Sweden who are using AI-assisted matching systems that prioritise skills similarities rather than identical occupations, while maintaining transparency. Austria’s BerufsInformationsSystem supports jobseekers in vulnerable situations in articulating their competences and accessing tailored guidance. France, Luxembourg and Ireland are engaging employers through simulation-based recruitment, sectoral cooperation and regional skills fora to turn skills notions into practical recruitment and training solutions.
Meanwhile the PES in Estonia, Czechia and Croatia are using forecasting models, retraining and lifelong learning systems and voucher-based learning systems to align labour market needs and information into targeted upskilling opportunities.
Consistent taxonomies, reliable skills data and interoperable systems are essential foundations for effective matching, yet alignment between national and the ESCO taxonomy remains uneven.
Although PES are at different stages of development, the TRW confirmed that PES’ continued commitment to invest in skills data, strength collaboration with employers and training providers and build organisational capacities. This, in turn, will contribute to better matching outcomes and inclusive labour market transitions.
Key findings include:
- A common skills language is essentialAlignment with ESCO and shared standards allows PES, employers and education providers to communicate effectively with the same ‘skills vocabulary’.
- Digital tools should complement rather than replace PES counsellorsAI and automation enhance matching efficiency, but they require human oversight, interpretation, and transparent use.
- Employers are key partnersTrust-based collaboration helps define real skills needs and design relevant recruitment and training pathways.
- Inclusion and continuous learning support adaptabilitySkills-based approaches, lifelong learning and modular training, including microcredentials, support all jobseekers – especially those with few qualifications, migrants or experienced workers – adapt to changing labour market demands.
- Organizational transformation and peer learning drives progress Leadership commitment, staff capability-building, modernized IT systems and exchanges with the PES Network are essential to accelerate innovation and help to embed skills-based approaches.
Further information:
Learn more about skills-based approaches in the full Thematic Paper here.
The PES Network Knowledge Centre and PES Practice database also have a wide range of information and inspiring practices on the organization and services of Public Employment Services across Europe.
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