A Skills-First Labour Market

Labour markets across OECD countries are undergoing rapid transformation, widening the gap between the skills employers need and those that formal education systems alone can provide. This report examines why skills-first approaches to hiring, talent management and skills development are becoming essential for improving labour market functioning and productivity, and what systemic changes are needed to adopt them at scale. It explores the development of common skills languages, the integration of modular learning pathways and micro-credentials into education and training systems, the adoption of skills-first human resource practices within firms, and the role of career guidance, skills passports and recognition of prior learning in linking learning to jobs. Drawing on data from the Skills-First Readiness and Adoption Index, as well as emerging policy practices across the OECD, the report identifies the conditions under which skills-first systems can reduce information asymmetries, widen access to employment opportunities, and support economic dynamism, resilience and social mobility during a period of sustained change.