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Title page 1

Contents 5

Foreword 4

Executive summary 8

1. Positioning skills as the new currency of work 10

In Brief 11

Introduction 11

A brief history of skills-first practices 12

Global trends driving the transition towards skills-first approaches 14

The economic rationale for prioritising skills 19

A novel definition of the skills-first paradigm 23

The Skills-First Readiness and Adoption Index 25

References 29

Notes 32

2. Building a common skills language 34

In Brief 35

Introduction 35

Building a language of skills 37

Connecting occupations to skills 39

Connecting education and training to skills 42

Using skills to understand changing labour market demands 43

Reducing frictions to interoperability 45

References 46

3. Putting skills at the centre of learning 49

In Brief 50

Introduction 50

Building flexible skill development pathways 52

Leveraging employers as co-designers and providers of training 57

Fostering a lifelong learning culture 61

References 63

Note 65

4. Promoting skills-first hiring and talent management 66

In Brief 67

Introduction 67

Identifying priority job roles and securing stakeholder buy-in 69

Designing skills-focused job descriptions 72

Selecting talent through demonstrated skills 74

Making skills-first hiring inclusive 76

Embedding skills in talent management more broadly 78

Enabling a skills-first shift through public policy 80

References 82

5. Connecting learning to jobs through guidance, signalling and collaboration 86

In Brief 87

Introduction 87

Embedding skills-first approaches in career guidance 88

Making skills more visible through signalling 91

Formalising skills through recognition of prior learning 94

Strengthening multi-stakeholder collaboration 96

References 99

Note 102

Tables 6

Table 1.1. Variables included in the Labour Market Pressure for Skills-First Approaches Index 18

Table 1.2. Variables included in the Skills-First Readiness and Adoption Index 27

Table 2.1. Examples of national occupational standards expressed in terms of skills 40

Table 2.2. Examples of national qualification registries linked to structured skill information 42

Table 2.3. Focus and dissemination method of skills assessment and anticipation findings 44

Table 3.1. Selected national micro-credential initiatives across jurisdictions 55

Table 3.2. Examples of sectoral skills bodies 60

Table 3.3. Examples of training leave policies in OECD countries 62

Table 4.1. Examples of high-skilled shortage occupations in Europe 70

Table 4.2. Example of skill profile - Human resources specialists 73

Table 4.3. Example of skills-first job description - Operations analysts 74

Table 4.4. Example of skill proficiency level descriptions 79

Table 5.1. Examples of government-led skills passport initiatives 93

Figures 6

Figure 1.1. Employer-reported hiring difficulties over the last decade 15

Figure 1.2. Prevalence of skills mismatch 16

Figure 1.3. Anticipated core skills disruption 17

Figure 1.4. Labour market pressure to move towards skills-first approaches 18

Figure 1.5. Numeracy proficiency by years of schooling 20

Figure 1.6. Skills mismatch by qualification mismatch 21

Figure 1.7. Job satisfaction and skills mismatch 22

Figure 1.8. Share of no degree holders by skills proficiency and parents' educational level 23

Figure 1.9. A conceptual framework for the skills-first paradigm 24

Figure 1.10. Dimensions of the Skills-First Readiness and Adoption Index 26

Figure 1.11. Overall readiness and adoption of skills-first practices 28

Figure 2.1. Achieving a common skills language 36

Figure 3.1. Key elements of skills-first learning 51

Figure 3.2. Implementation of modular learning pathways at the national level 53

Figure 3.3. Policies to steer the development of in-demand skills 58

Figure 3.4. Employers as key contributors to skills-first learning 59

Figure 4.1. Employer-reported skill assessment mechanisms 68

Figure 4.2. Key steps of skills-first hiring and talent management 69

Figure 4.3. Organisational culture as a barrier to transformation 72

Figure 4.4. Employers using pre-employment tests to assess skills during hiring 75

Figure 4.5. Comparative returns to skills versus qualifications 78

Figure 4.6. Public authorities as key promoters of skills-first talent management 81

Figure 5.1. Key pillars of skills-first career guidance 88

Figure 5.2. Focus of career guidance 89

Figure 5.3. Skills signalling by individuals 92

Figure 5.4. Implementation of recognition of prior learning systems at the national level 95

Figure 5.5. Objectives of recognition of prior learning systems 95

Figure 5.6. Mechanisms for skills-first stakeholder collaboration 97

Boxes 18

Box 1.1. The construction of the Labour Market Pressure for Skills-First Approaches Index 18

Box 1.2. The construction of the Skills-First Readiness and Adoption Index 26

Box 2.1. Expressing occupations through structured skill information 41

Box 2.2. The EU's Skills Portability Initiative 45

Box 3.1. Harmonising micro-credentials and adult learning systems 56

Box 4.1. Employer co-operation to develop shared skill profiles 73

Box 4.2. Piloting skills-based hiring 74

Box 4.3. Skills assessment through simulations 76

Box 4.4. Visualising career progression in key professions 79

Box 5.1. Helping individuals understand and showcase their skills 91

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