The skills gap is a significant inequity that continues to exist in the ever-changing educational tapestry of Europe. We explore the nuanced educational systems in different European countries as we delve into this issue’s many layers, relating to the discrepancy between job seekers’ abilities and employers’ needs.

Ultimately, this article serves as your guide to understanding not just the challenges but also the opportunities that lie ahead. It is an insightful resource for anyone seeking to comprehend the dynamics of Europe’s education and skills landscape, offering a roadmap to navigate the present and embrace the possibilities of the future.

Key Takeaways

• The skills gap is a significant difference between the abilities companies desire in their employees and the skills possessed by job seekers.
• The OECD estimated that around 80 million European workers have skills incompatible with their jobs, leading to either overqualification or underqualification.
• Europe has three main education models: single-structure, common basic curriculum, and differentiated lower secondary education.
• Global automation and the skills gap have led to youth unemployment, with 1.3 billion young people struggling.
• Almost half of the EU population lacks digital skills, impacting industries and hindering GDP growth.
• Socioeconomic factors like poverty, parental education, residential location, gender, language, and culture contribute to educational disparities.
• The gender pay gap in the EU persists, affecting overall earnings, employment rates, and opportunities for women.
• The European Commission’s Skills Agenda and private companies collaborate to bridge the skills gap through reskilling and upskilling initiatives.
• Language barriers, migrant integration issues, and slow technology adoption pose challenges to education and workforce development.
• Emerging trends include the Digital Education Action Plan, the New Skills Agenda for Europe and other initiatives like ESCO and the Skills Panorama for monitoring and upgrading skill gap trends.

Key Stats

• At least 80 million European workers have skills mismatched with their jobs.
• In Greece, 42% of workers, in Portugal, 41%, and in Germany, 37% face skills-job mismatch.
• Germany had 3.4 million tertiary education students, making up 18.1% of all EU students.
• Europe has 93.3 million students across various education levels.
• 23.3% of people aged 25-74 have low education attainment, 31.8% have tertiary education, and 44.8% have a medium education attainment level.
• Almost 40% of employers have difficulty filling positions due to a lack of required skills.
• ICT specialists were employed by 19% of EU businesses in 2020, with varying percentages across industries.
• 1.3 billion young people around the world are struggling to find jobs.
• The gender pay gap in the EU was around 12.7% in 2021.
• By 2025, 540 million adult work training activities are anticipated.

Education and Skills Gap Statistics in Europe

Definition of Education and Skills Gap

According to an article from Brookings, the term skills gap refers to an essential difference between the abilities companies want in their employees and the skills job seekers have. Due to this mismatch, it is challenging for both job seekers and businesses to discover qualified candidates.

The Relevance of the Issue in Europe

An article from Euractiv in 2019 addresses how the European economy is struggling with the growth of the skills gap resulting from digitalization, transition to green energy, demographic changes, etc.

The Organization for Economic Co-operation and Development’s (OECD) Skills for Jobs database estimated that at least 80 million European workers have skills that are not compatible with their jobs.

This indicated that employees were either overqualified or underqualified for the positions they had been hired for. According to the OECD, this was the situation for 42% of workers in Greece, 41% in Portugal, and 37% in Germany.

In this article, we analyze topics like how many people have jobs that do not match their work skills, why young people are struggling to find work, the income difference between men and women, and more. The information presented should deepen your understanding of the present and future of Europe’s education and workforce.

The European Education Landscape

European Education Systems

An article from Volunteer in the World tells us how Europe has three main models of education: single-structure education, a common basic curriculum, and a differentiated lower secondary education.

Firstly, in the single-structure education model, every student follows a common syllabus from the start, which offers general education. This model is followed in Scandinavia, Iceland, and several other Eastern European countries.

On the other hand, in the common basic curriculum model, students start a unified syllabus at the start of secondary education. Many countries like England, Ireland, Italy, France, Spain, Portugal, Greece, Poland etc. follow this model.

Lastly, in the differentiated lower secondary education model, students continue studying and specializing in their secondary education for their respective majors after completing their primary education.

Some other educational system approaches for different European countries are as follows.

• Germany has an interesting method for grading students. They can assign negative marks, but if they fall between -4 and 4, you still get a passing grade.
• In Finland, students get woodworking and cooking lessons and no homework or exams.
• In France, no student gets full marks. They teach them to be content with their grades this way. There are also no admission tests for universities.
• The UK has the lowest record of rejected students, which is only 3%. This is while the percentage for other European countries is 10%. Moreover, PE is a compulsory subject by the age of 16.
• In Slovenia, students study natural and social sciences more than typically expected.

Key Educational Metrics

1. Graduation Rates

A Eurostat report states that in Europe in 2021, there were 18.5 million students in tertiary education. Germany, the state with the largest population in Europe, had 3.4 million tertiary education students, 18.1% of all EU students. The next highest number of tertiary education students was France, with 15.2% of the total, Spain with 12.2%, and Italy with 11.3%.

Among the 18.0 million tertiary education students in the EU:

• 7.7% were following short-cycle tertiary courses
• 59.5% were studying for bachelor’s degrees
• 29.2% were studying for master’s degrees
• 3.6% were studying for doctoral degrees

2. Enrollment Rates

According to another article from Eurostat, in 2020, Europe had 93.3 million students enrolled in 6 different education levels. These were pre-primary, primary, lower and upper secondary, post-secondary non-tertiary, and tertiary.

• 13.6 million children were enrolled in pre-primary education.
• 23.3 million pupils were enrolled in primary education.
• 19.0 million students were enrolled in lower secondary education.
• 17.9 million students were enrolled in upper secondary education in 2020.
• 1.4 million students were enrolled in post-secondary non-tertiary education.
• 18.0 million students were enrolled in tertiary education.

3. Educational Attainment

Findings from another Eurostat article indicate that in 2022, 23.3% of people aged between 25 and 74 had a low education attainment level in Europe. The statistics were 31.8% for tertiary education, 44.8% for medium education attainment level, 9.6% general and 35.2% for professional education.

Additionally, education attainment levels are different for all EU Member States. The highest percentages of people with low levels of education were found in Spain, Malta, Italy, and Portugal (all above 40%), and the lowest percentages were found in Lithuania, Czechia, Slovakia, Latvia, and Poland (all less than 10%). This percentage varied from 5.3% in Lithuania to 46.2% in Portugal.

Moreover, the highest percentage of people with tertiary education, over 45%, were found in Ireland, Luxembourg, Sweden, and Norway. The lowest shares, all below 25%, were reported by Serbia, Romania, Italy, Croatia, and Czechia. Overall, higher education numbers varied from 17.4% in Romania to 49.8% in Ireland.

Spain and Portugal had the lowest share of people, under 26%, for medium-level education. Slovakia and Czechia had the highest share of above 65%.

In short, European education is an amalgamation of diverse approaches with largely positive results. However, these figures do not explain how the education system prepares its students to enter the job market. In other words, how much of a skills gap is Europe facing?

Skills Gap in Europe

Deloitte helps us understand the expectations of the European workforce and the required skills to meet the expectations.

Work is changing as a result of artificial intelligence, robotics, and other digital developments, certainly with mixed results. In order to take advantage of the new opportunities that will inevitably arise, both employers and employees need to possess the necessary digital and soft skills.

However, in 2019, it was estimated that half of the EU’s population lacked digital skills, and one-third of the European people had no digital skills at all. Almost 40% of employers have difficulty filling vacant positions due to a lack of the required skills. In contrast, 30% of recent graduates are working in positions where their university-acquired abilities are not applicable.

Industries Affected

A McKinsey Global Institute study from 2020 indicates that sectors like manufacturing, mining, healthcare, and education are the ones lagging tremendously due to a lack of required skills. If their digital asset usage and enhanced labor digitization double, the EU-28 could see a €2.5 trillion GDP increase by 2025, fostering an additional 1% annual GDP growth.

The European Commission’s 2020 Digital Strategy aims to unlock this potential by increasing AI development investments to over €20 billion annually through 2030, a substantial rise from €3.2 billion in 2016.

Moreover, according to a Eurostat survey, the ICT sector has faced significant consequences because of the lack of qualified specialists. Over the course of 2019, 55% of businesses had difficulty acquiring ICT specialists.

ICT specialists were employed by 19% of EU businesses in 2020, though the percentage varied by industry.

Figures for ICT specialists’ employment in different fields were:

• 72% in the information and communications sector.
• 30% in the professional, scientific, and technical activities sector.
• 26% in the electricity, gas, steam, air conditioning, and water supply sectors.
• 23% in the real estate sector.
• 8% in the construction industry.

Economic Consequences

A Harvard Business Review post from 2022 tells us that 1.3 billion young people in the world are struggling with unemployment as a result of global automation and the skills gap. The prevailing crisis is explained in the following facts:

• While the world’s youth population (ages 15 to 24) increased by 30% between 1999 and 2019, their labor force participation rate fell by about 12% internationally.
• In a survey, 36% of CEOs said they were focusing on enhancing productivity through technology and automation, which is more than twice the percentage of CEOs who said the same in 2016. This indicates that jobs traditionally held by the young are at risk of becoming automated and at a faster rate.
• Almost one-quarter of young people aged 18 to 24 lost employment during the pandemic. Many others had their working hours and incomes drastically reduced.

In addition to that, highlights from a Eurostat article show that in the second quarter of 2023, the EU had 2.7% vacant jobs. Netherlands had the highest share of 4.7%, followed by Belgium at 4.6% and Austria at 4.4%.

The Skills Gap in Europe is a big deal – nearly half the population lacks digital skills. This mostly results from a lack of pertinent education, especially among some groups of the population. The following heading discusses some of the reasons for this lack.

Factors behind Education Disparities in Europe

Socioeconomic Factors

An article by UNESCO’s International Institute for Educational Training tells us some factors for socioeconomic inequalities and disparities across different countries:

Poverty

Children from poor families lack the basic education needs and may not be adequately prepared for school. Those from underdeveloped communities face higher risks of malnutrition, absent parents, and exposure to stress and violence. Limited school funding leads to poorer outcomes, and attendance is affected by the need to work for family support and challenges with school fees.

Parental literacy and education

A child’s early learning is heavily influenced by their upbringing. The Programme for International Student Assessment (PISA) findings reveal that well-off children read better than less privileged kids. The Third Regional Comparative and Explanatory Study (TERCE) research suggests that children perform better when their parents have expectations of higher education from them.

Parental education disparities may hamper the educational experience of a child. Uneducated parents may avoid involvement in schoolwork and engagement with teachers, which limits access to educational resources.

Residential location

Funding and development differ in many sectors, notably between rural and urban areas. Rural and urban schools in less affluent areas receive little funding. This makes it harder for students to get quality education. A 2018 UNICEF report found that the poorest urban children in 1 in 6 countries are less likely to complete primary school than their rural peers.

Gender

In numerous countries, girls have less school access than boys. They are also more prone to early dropout. Factors include practical issues like distance, safety, facilities, expectations tied to household chores, child marriage, and limited post-school employment opportunities for girls.

In some cases, girls may leave school due to financial difficulties or a perceived lack of importance. Gender stereotyping in teaching methods and school-related gender-based violence can also significantly affect students’ learning.

Language

International studies repeatedly show that speaking a language at home that is not the language of education at school is a hindrance that increases the chance of repeating a class or dropping out.

Culture, Ethnicity, and Race

Children who experience direct and indirect discrimination based on race, religion, or culture may have detrimental psychological and developmental effects from a young age. They may perform poorly or find it difficult to learn as a result.

Gender-Based Disparities

A European Commission research from 2021 states that the gender pay gap in the EU was around 12.7%. This means that women earn 13% less per hour than men.

The gender overall earnings pay gap, which measures the average hourly wages, the monthly work hours, and the employment rate, was 36.7% in 2018.

The gender employment gap was 10.8% in 2021, with 67.7% of women being employed in comparison with 78.5% of men.

Moreover, the case for every EU Member State is different in this regard. The gender pay gap varies from more than 18% in Germany, Austria, Estonia, and Latvia to less than 5% in Luxembourg, Romania, Slovenia, Italy, and Poland.

Disparities and struggles are prevalent in Europe’s educational and corporate sectors. Let’s take a look at what measures are being taken to fix these issues.

Efforts to Bridge the Education and Skills Gap

Government and EU Initiatives

The European Commission presented the European Skills Agenda in July 2020 to promote competitiveness and equity in society. In collaboration with the Member States, its 12 actions focus on job skills with the purpose of reskilling and upskilling.

The list of objectives for their 5-year plan are:

• 50% participation of adults aged 25-64 in learning annually, which would be an increase of 32%.
• 30% participation of low-qualified adults aged 25-64 in learning annually, which would be an increase of 67%.
• 20% share of unemployed adults aged 25-64 with a learning experience, which would be an increase of 82%.
• 70% share of adults aged 16-74 exposed to at least basic digital skills, which would record a rise of 25%.

According to this Skills Agenda, by 2025, 540 million adult training activities are anticipated. 60 million will be for adults with low qualifications, and 40 million will be for unemployed individuals. There should be 230 million adults with basic digital skills by this time.

Additionally, another article from the European Commission in 2022 tells us that 3% of the job market has vacant positions and is facing skills gap issues, causing companies difficulties in finding the right fit for them. In 2021, the Digital Economy and Society Index revealed that 44% of people lacked basic digital skills.

The same report lists the initiatives the government has taken to tackle the crisis. The European Commission hopes that by 2030, 80% of EU adults will have at least basic digital skills. They also hope there will be 20 million ICT specialists — mostly women — working across the EU.

Private Sector Efforts

Private companies have taken it up to themselves to bridge the skills gap by addressing the issue in their businesses and communities. The World Economic Forum gives an instance of how Germany is bridging its growing skills gap on its own.

Germany’s industrial heavyweights are working together to retrain workers in fields like software and logistics to fill the widening skills gap and prevent unemployment of workers of all ages. More than 36 large corporations, from industrial giants BASF and Siemens to auto suppliers Continental and Bosch, have decided to collaborate on layoffs at one company and openings at another, preparing employees to go seamlessly from job to job.

Now that we have addressed the few efforts being made to bridge the skills gap, let’s see what other challenges await this issue.

Challenges and Roadblocks 

Language Barriers

A study was published in 2020 by Taylor & Francis Online regarding the language barriers in multilingual European countries. According to the study, many European countries set goals in order to preserve and promote multilingualism as a part of their cultural diversity.

It stated that the concept of “new speakers” was introduced to recognize and evolve language practices in these countries.

However, there still remained challenges in language education. According to the study, educators often prioritize teaching in the majority language, neglecting the linguistic diversity of their students.

Furthermore, teacher training programs focus on upgrading proficiency in the majority language while not adequately addressing the needs of learners from diverse backgrounds. Moreover, the study stated that there is a shortage of suitable models for bilingual instruction that would be able to cater to students who speak different languages.

Integration of Migrants

The European Parliament published a study in 2016 on the challenges and opportunities related to integrating migrants into the European education and labor markets. According to the study, access to quality education is legally guaranteed for migrants in Europe. However, the actual quality of the education may be problematic. It states that migrant students often face barriers to entry and do not receive the same educational opportunities as others.

Furthermore, it reported that migrant students are at a higher risk of dropping out of school without obtaining an upper secondary qualification, damaging their prospects for entering the labor market. Additionally, first-generation immigrant students also perform worse than national students in most European countries, while second-generation immigrant students fall in between.

The percentage of students from migrant backgrounds in the EU’s educational system varies greatly amongst member states. Luxembourg has the greatest proportion of 46.4% of 15-year-old students with migrant backgrounds. It is followed by Austria (16.4%), Belgium (15.1%), France (14.8%), and Sweden (14.5%). In contrast, nations in central and eastern Europe, such as Romania and Poland, have very low rates of 0.2%.

On the other hand, the study also highlighted opportunities for immigrants in these systems. It stated that policymakers can invent policy interventions that eliminate the disadvantages faced by migrant students. Moreover, there are refugee support programs that could be set up, such as specific funds. One of these funds includes the Regional Trust Fund for responding to the Syrian crisis.

Technological Advancements

According to a report from Adecco, the skill gap has grown from 55% to 69% between 2021 to 2023. The job market prefers digital skills, and workers are struggling to keep up with the pace of technological advancement.

Moreover, a WPG report explains the difficulty of finding the proper training and the right network infrastructure to support teaching new students and training them for the future job market. Most organizations are resistant to change and don’t invest in the infrastructure. This causes a negative effect as a strong network would require a better quality of technology.

In addition to that, a report from GoGuardian tells us a few reasons why integrating technology is difficult. The introduction of students with technology can be misused as students tend to use it for personal use rather than learning. More of a challenge is to keep them safe as they are vulnerable to explicit content online. The article also speaks on the investment needed to provide students with new technology and keep up with the pace of new advancements.

In European education, there’s a mix of challenges. Addressing these challenges calls for proactive measures in training, technology adoption, and policy adjustments. But with that being said, let’s have a look at some new policies by the European Commission that sound promising of a better future.

The Future of Education and Skills in Europe 

Emerging Trends

According to the European Commission, the Digital Education Action Plan, a policy initiative by the EU, is made to provide high-quality digital education and adaptation of digital skills to the Member States. The Action Plan started in September 2020 and has 2 strategic priorities, which include 14 actions.

Priority 1 includes digital education and training. It is expected to raise awareness of successful digital transformation in education and digital skills. Primary and secondary schools are implementing a Blending learning factor, which could allow them to learn at school and in other environments such as companies and training centers. EU Commission has also included ethical guidelines for AI to help students and mentors vary the possible risks.

Priority 2 consists of the European Digital Skills Certificate (EDSC), which will help in transparency for the government and organizers. 90% of jobs require basic digital skills, which over 42% of European citizens don’t have. Digital Traineeships will help people strengthen their skills in technology-related fields. Results show more than 20,000 students have taken advantage of it. Women’s participation in STEM is an important priority to enhance the digital economy. For instance, girls represent just 20% of ICT graduates. From 2011 to 2020, there was an increase of 3% in female scientists and engineers.

Policy Directions

Another article by the European Commission states the following strategies that are made to counter the skills gap:

• The New Skills Agenda for Europe for Europe highlights ten measures to provide EU populations with suitable training, skills, and assistance.
• The Commission’s Digital Education Action Plan outlines 11 actions to improve the use of digital technology for digital competence development, teaching, and learning.
• The Digital Skills and Jobs Coalition is a multi-stakeholder partnership established to resolve the ICT skills gap shortage. It will also help fill the open positions in this industry.
• The Entrepreneurship 2020 Action Plan is a roadmap for achieving Europe’s entrepreneurial potential by removing barriers and transforming the entrepreneurial culture in the EU.
• ESCO is the multilingual classification of European Skills/Competencies, Qualifications, and Occupations. It offers standardized vocabulary in 25 different European languages and classifies essential skills and jobs for the EU economy.
• The Skills Panorama monitors the changing demands of the European economy and skills development at the national and European levels. It also offers information on skill trends at the national and EU levels.

In a nutshell, according to the government’s initiatives, we can hope for quick solutions and results for a better EU job market. It is all about getting ready for the future!

FAQs

1. What is the purpose of skills gap analysis?

The Academy of Innovative HR (AIHR) defines skills gap analysis as the method for determining the differences between a workforce’s existing capabilities and what will be needed to meet the business goals in the present or in the future. It shows the skills that workers lack but are required to have in order to carry out their jobs or particular tasks successfully.

2. What is the European Year of Skills Council?

The European Council and Parliament made an agreement on the European Year of Skills running from 9 May 2023 until 8 May 2024. The main goal of the European Year is to promote the mindset of upskilling and reskilling to bridge the skills gap and shortages. Another purpose is to increase the competitiveness of European businesses and generate high-quality employment.

3. What are Skills for the Future EU?

Skills for the Future is a remarkable secondary education program that supports the future generation of entrepreneurs in Europe. It equips people with the skills, expertise, and confidence they need to come up with inventive solutions to the many complicated problems that lie ahead.

Conclusion

In conclusion, the education and skills gap in Europe is a pretty complex challenge, covering a lot of ground, from how education is structured to economic impacts and future trends. The issue is relevant across Europe, affecting industries and economies.

Looking closer, industries like manufacturing and healthcare are taking a hit due to a lack of necessary skills, causing economic troubles. There’s a big push from both the government and private sector to tackle these challenges, with initiatives like the European Commission’s Skills Agenda aiming to boost digital skills and overall workforce capabilities.

But it’s not all smooth sailing. Challenges like language barriers, migrant integration, and fast-paced technological changes make things trickier. However, there’s hope for the future. Emerging trends, like the Digital Education Action Plan and various strategies from the European Commission, are steps in the right direction.

Addressing the education and skills gap in Europe needs a well-rounded approach. It is filled with considering the complexities of education systems, disparities, challenges, and future trends. By working together, embracing technology, and ensuring everyone has a fair shot, Europe can build a workforce ready for the future.