Understanding Skill Gaps in Firms

In a global economy transformed by rapid technological advances ageing populations shifting global supply chains changing consumer preferences and efforts to achieve net-zero emissions firms' skill needs are changing. Skill gaps - the mismatch between workers' skills and those required - pose a significant challenge for firms to meet business needs in this changing environment. This report based on results from the PIAAC Employer Survey Module examines the prevalence and impact of skill gaps in five European countries: Hungary Italy the Netherlands Portugal and the Slovak Republic and analyses how firms are responding through strategies such as skills anticipation training and targeted recruitment. The report finds that skill gaps are widespread especially in technical skills teamworking and problem solving. These gaps lead to challenges including increased workloads for existing staff higher operating costs and difficulties in implementing new work practices. To address these issues most enterprises focus on training and development while fewer choose to recruit new staff or change the way work is organised.