European PES Network Publishes Paper on Skills-Based Job Matching
Summary
The European PES Network has published a Thematic Paper on how Public Employment Services across Europe are adopting skills-based approaches to job profiling, matching, and reskilling. The paper draws on a September 2025 workshop in Luxembourg involving representatives from 23 PES, the European Commission, and ESCO team members. Key findings include that AI-assisted matching systems prioritising skills similarities over identical occupations are in use in Luxembourg, Belgium-VDAB, and Sweden, while Austria, France, Ireland, Estonia, Czechia, and Croatia are deploying complementary tools for profiling, employer engagement, and upskilling. The paper emphasises that consistent taxonomies, reliable skills data, and interoperable systems are essential foundations, though alignment with the ESCO taxonomy remains uneven across Member States.
“Skills-based approaches are central to navigating this shift.”
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What changed
The Thematic Paper documents how European Public Employment Services are shifting from qualification-based to skills-based approaches in job profiling, vacancy description, and matching. The paper identifies concrete examples of progress including AI-assisted matching systems in Luxembourg, Belgium-VDAB and Sweden, and complementary tools in Austria, France, Ireland, Estonia, Czechia and Croatia covering profiling, employer engagement, forecasting, and voucher-based learning. Key findings stress that a common 'skills language' aligned with ESCO, digital tools complementing human counselling, employer partnership, inclusion of vulnerable jobseekers, and organisational transformation are all essential to effective skills-based matching.
Government employment agencies, HR technology providers, and workforce development organisations should monitor ESCO taxonomy alignment efforts and consider how AI-assisted matching systems handle skills similarity scoring versus occupation matching. HR professionals and compliance teams involved in recruitment practices may find the emphasis on competency verification beyond formal credentials relevant to evolving hiring standards. The paper does not impose compliance obligations but signals a directional shift in public employment service delivery across the EU.
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Apr 25, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
A new Thematic Paper has been published by the European Network of Public Employment Services (PES Network) examining how PES across Europe are adopting skills-based approaches to improve job profiling, job matching, job vacancy description, reskilling and upskilling.
The paper ‘Skills-based Approaches in Public Employment Services Processes and Activities’ draws on discussions from the Thematic Review Workshop (TRW), which took place on 16 and 17 September 2025 in Luxembourg. Hosted by the Luxembourg PES (ADEM), the TRW brought together representatives from 23 PES across Europe, the European Commission, the European Skills, Competences, Qualifications and Occupations **** (ESCO) team and a Thematic Expert.
Europe’s labour markets are being reshaped by the triple transitions (green, digital and demographic transitions) with persistent shortages in sectors such as health, ICT, construction and hospitality. Skills-based approaches are central to navigating this shift. While traditional recruitment often relies on formal qualifications, such as university degrees or vocational diplomas that certify a specific level of education, a skills-based approach focuses on the actual competences an individual possesses. This method recognises that valuable abilities are often acquired through practical work experience, volunteering or non–formal training, even if they are not reflected in a formal certificate. For PES, this approach is essential, as it allows for improved matching in a volatile economy, broadens the talent pool by uncovering ‘hidden’ talent and facilitates smoother transitions for workers moving between sectors.
Several PES shared concrete examples of progress including Luxembourg, Belgium-VDAB and Sweden who are using AI-assisted matching systems that prioritise skills similarities rather than identical occupations, while maintaining transparency. Austria’s BerufsInformationsSystem supports jobseekers in vulnerable situations in articulating their competences and accessing tailored guidance. France, Luxembourg and Ireland are engaging employers through simulation-based recruitment, sectoral cooperation and regional skills fora to turn skills notions into practical recruitment and training solutions.
Meanwhile the PES in Estonia, Czechia and Croatia are using forecasting models, retraining and lifelong learning systems and voucher-based learning systems to align labour market needs and information into targeted upskilling opportunities.
Consistent taxonomies, reliable skills data and interoperable systems are essential foundations for effective matching, yet alignment between national and the ESCO taxonomy remains uneven.
Although PES are at different stages of development, the TRW confirmed that PES’ continued commitment to invest in skills data, strength collaboration with employers and training providers and build organisational capacities. This, in turn, will contribute to better matching outcomes and inclusive labour market transitions.
Key findings include:
- A common skills language is essential
Alignment with ESCO and shared standards allows PES, employers and education providers to communicate effectively with the same ‘skills vocabulary’.
- Digital tools should complement rather than replace PES counsellors
AI and automation enhance matching efficiency, but they require human oversight, interpretation, and transparent use.
- Employers are key partners
Trust-based collaboration helps define real skills needs and design relevant recruitment and training pathways.
- Inclusion and continuous learning support adaptability
Skills-based approaches, lifelong learning and modular training, including microcredentials, support all jobseekers – especially those with few qualifications, migrants or experienced workers – adapt to changing labour market demands.
- Organisational transformation and peer learning drives progress
Leadership commitment, staff capability-building, modernised IT systems and exchanges with the PES Network are essential to accelerate innovation and help to embed skills-based approaches.
Further information:
Learn more about skills-based approaches in the full Thematic Paper here.
The PES Network Knowledge Centre and PES Practice database also have a wide range of information and inspiring practices on the organisation and services of Public Employment Services across Europe.
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You can also follow the latest developments from PES Network members in the PES Network LinkedIn group. Click here to join.
Don’t miss the PESPod podcast, featuring guests from across the Network exploring the latest issues, topics and perspective being talked about by Public Employment Services across Europe. Listen to the latest episode here.
Details
Publication date 24 April 2026 Author Directorate-General for Employment, Social Affairs and Inclusion
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