By Veronika Bak, PhD Candidate, Department of Media and Communication, Erasmus School of History, Culture and Communication, Erasmus University Rotterdam, the Netherlands
This blog is produced as a part of the Reshaping Work Fellowship Programme. The opinions and views expressed in this publication are those of the author. They do not purport to reflect the opinions or views of Reshaping Work or organisations that have supported the programme.
How prepared is Europe for the skills (r)evolution? Can Europe shape skill transformation processes proactively rather than merely react to changes imposed by others? The answer will determine whether Europe emerges as a global leader in human-centred technology and sustainable development or falls behind as others set the pace. Europe must transition from reactive skills adaptation to proactive workforce transformation in green and digital transitions, turning current skills challenges into competitive advantages.
Europe is well on its way to the skills transformation, but its readiness is uneven. With its targeted actions and inclusive strategies, it has the potential to undergo an unprecedented skills (r)evolution. Rapid technological advancement, the twin green and digital transitions, shifting demographics, geopolitical uncertainty, and emerging business models are fundamentally altering the range of professional skills requirements. Organisations increasingly recognise the need to transition from incremental skill development to comprehensive reskilling and upskilling programs that address the transformative skill requirements of Industry 5.0.
As the pace of the digital and green transitions accelerates, skills gaps are becoming more pronounced across Europe and employers are increasingly reporting difficulties in filling vacancies. In 2023, around 75% of European employers in 21 countries had trouble hiring qualified candidates, and the problem was most acute for technician roles. This skills mismatch is increasingly becoming a pressing problem for Europe’s competitiveness and economic growth.
To address it, the EU has set itself ambitious targets as part of the 2030 Digital Decade initiative: by 2030, 80% of adults should have at least basic digital skills (up from 56% in 2023). Additionally, the EU also targets 20 million employed ICT specialists (nearly double the 10.3 million ICT professionals recorded in 2024). The initiative also emphasises promoting greater participation of women in ICT professions while increasing the overall number of ICT graduates to meet these growing demands.
To capture the urgency of this challenge and to provide a practical roadmap, the Skills Pyramid acts as a strategic compass for European stakeholders, policymakers, industry leaders, and educational institutions. Its three interconnected levels recognise skills development as a continuous, interconnected journey where progress at each level accelerates development at the next.
Tier 1: Foundational skills: the essential base
Foundational skills are the most important for all employees, regardless of profession or industry.
- Digital literacy: Basic digital competence is no longer optional; it is a civic requirement. In Europe, over 90% of jobs in various industries now demand a basic level of digital knowledge and comprehension. With around 32% of Europeans still lacking basic digital skills, there is an increasing focus on assessing and improving digital competencies throughout the EU.
- Green awareness: From energy efficiency to the principles of circular economy, sustainability knowledge is necessary. The EU’s Fit for 55 policy package is alone projected to create over 204,000 net new jobs by 2030, with the largest gains in construction and energy-efficiency operations.
- Communication & collaboration: The EU’s multilingual and multicultural labour market requires digital collaboration skills that value diversity and ensure responsible digital presence, as emphasised in the DigComp framework.
- Adaptability & lifelong learning: The European Skills Agenda focuses on a culture of lifelong learning to adapt to the rapid technological changes and market demands. According to this plan, employees must actively seek opportunities to grow, not merely accept change.
Tier 2: Sector-specific & transferable skills: the bridge for mobility
These skills link foundational abilities with industry demands, empowering employees to transition across sectors and roles.
- Advanced digital & data skills (AI, data analytics, cybersecurity): Europe is experiencing significant demand for advanced digital skills with measurable labour-market effects. AI-exposed sectors are seeing productivity growth nearly four times faster than others. A new Eurobarometer survey reveals a critical shortage of cybersecurity skills in the EU, highlighting the need for more specialists and increased cybersecurity awareness.
- Sustainable practice application (fit-for-purpose green skills): The green transition is not about losing jobs, but about shifting them, opening new opportunities that call for reskilling and new ways of working. The necessity of introducing measures that provide important green skills and competences is recognised.
- Project management & cross-functional agility: Europe’s cross-border initiatives under the Pact for Skills are built upon collaborative, flexible project delivery models that emphasise stakeholder engagement, adaptability to local contexts, and transparent communication to ensure sustainable outcomes.
Tier 3: Transformative & leadership skills: the apex
At the top of the pyramid are skills that drive innovation, ethical leadership, long-term strategic vision and resilience. These are the skills that will ensure success in achieving the Europe’s ambitious transformation goals.
- Strategic leadership & vision: Achieving the EU’s climate and digital targets requires leaders capable of guiding large-scale transformations. This includes driving reskilling initiatives, embedding data-driven decision-making, and upholding human-centric approaches through technological disruptions.
- Innovation & problem-solving: Horizon Europe’s €95.5 billion budget (2021-’27) is among the largest research and innovation programmes globally, tackling diverse challenges. Success depends upon stakeholders able to turn resources into tangible impact.
- Human — AI complementarity: AI is creating demand for roles that combine machine intelligence with human judgment, empathy, and creativity. The EU’s AI Continent Action Plan (April 2025) proposes the AI Skills Academy to improve AI adoption and skills, while piloting generative AI-focused degree programs.
- Ethical & responsible AI use: The European Commission’s Union of Skills initiative (March 2025) further emphasises building skills for life, recognising that ethical AI use requires both technical competence and awareness of societal impacts.
The Path Forward
The transformation of skills within Europe is underway. In order to achieve it, stakeholders need to:
- Suggest sequential policy design and create a skills prerequisite system. Rather than starting with advanced AI training, increasing the number of AI experts by training employees and the general population should begin with assessing and ensuring that the workforce has demonstrated digital literacy.
- Establish sector mobility protocols using the DigComp framework. DigComp’s transferable competencies could help to form the basis for cross-sector mobility initiatives rather than complete retraining.
- Implement skill tracking systems that move beyond static certification toward continuous competency profiles, thereby adapting dynamically to technological changes and reflecting real-time skills evolution.
- Invest in employee adaptability infrastructure in order to create internal continuous learning systems that update employee skills profiles based on technology changes.
- Structure human-AI complementarity roles by designing job roles that combine machine intelligence with human judgment rather than replacing workers.
- Build consortium partnerships around complementary skill tiers. When pursuing EU innovation fundings, partner with organisations that have different tier strengths.
Although the EU has set out specific programmes and targets for foundational skills (Tier 1), the success of Europe’s skills transformation will increasingly depend on addressing sector-specific shortages and developing robust Tier 2 and Tier 3 capabilities, as promoted by initiatives such as targeted skills academies and strategic leadership programmes.
What role will you play in Europe’s transformation? Europe’s competitiveness, resilience, and social cohesion now depend on building a workforce ready not just to adapt, but to drive transformative change. The future of work is not something that happens to us, it is something we create together.