Skills intelligence is an important aspect of the modern economy, particularly in the European Union (EU), which faces various challenges, including demographic shifts, technological advancements, and global competition. The concept of skills intelligence has emerged as a response to these challenges and is considered a means to better understand the evolving needs of the labor market, thereby guiding policy interventions and investment strategies in education and training.
What is skills intelligence?
At its core, skills intelligence is the process of gathering, analyzing, and disseminating information on the skills needed for the labor market. This information encompasses a range of indicators such as job vacancies, occupational projections, and data on the education and training of workers. The information obtained through skills intelligence is then used to develop policies, programs, and initiatives aimed at improving the skills and competencies of the workforce. This in turn contributes to increased employability, productivity and finally economic growth.
How can skills intelligence address the issues in the current labour market?
One of the key benefits of skills intelligence is that it helps to bridge the gap between education and the labor market. As a result of globalization and technological advancements, the skills demanded by the labor market are evolving at an unprecedented pace, creating a mismatch between the skills and competencies of the workforce and those demanded/required by employers. By providing relevant and up-to-date information on the changing needs of the labor market, skills intelligence can help education and training institutions to align their curricula with the current needs of the labor market, thereby enhancing the employability of graduates.
Furthermore, skills intelligence can help businesses to make informed decisions on their recruitment and training strategies. For instance, by understanding the skills that are in demand, businesses can recruit and train employees with the necessary competencies. This enhances the employees’ productivity and competitiveness. Additionally, by providing information on the availability of skilled labor, businesses can tailor their recruitment strategies, reduce turnover, and develop retention strategies. Ultimately, skills intelligence will benefit both employees and employers resulting in a win-win situation.
How can skills intelligence reduce skills shortages?
Skills intelligence also has an important role to play in reducing skills shortages and mismatches in the labor market. These shortages often result from a lack of up-to-date information on the changing needs of the labor market, leading to a situation where there are either too few workers with the needed skills or too many workers with redundant competencies. Such mismatches can lead to a reduction in productivity, underemployment, and in extreme cases, unemployment.
By providing information on the skill needs of the labor market, skills intelligence can guide government policy creation and employers aimed at reducing skills shortages and mismatches.
European Skills Agenda
In the EU, there are various initiatives aimed at improving skills intelligence. For example, the European Skills Agenda, which was launched in 2020, seeks to ensure that the EU workforce is equipped with the skills and competencies needed to navigate the challenges of the 21st century. The agenda has set out various targets, including the upskilling and reskilling of at least 60% of adults by 2030 and the strengthening of the skills base of small and medium-sized enterprises (SMEs). To achieve these targets, the agenda proposes various measures, including the establishment of a European skills and qualifications database and the development of a European skills index. The latter will provide information on skills supply and demand at national and regional levels.
In conclusion, skills intelligence is a critical aspect of the modern economy, particularly in the EU, which faces various challenges in the form of demographic shifts, technological advancements, and global competition. If you would like to read more about the research into labor and skills shortages in the private security services market, you can find the report here: