• Council of the EU
• Press release
• 9 March 2026 15:10

Tackling the skills shortage: Council adopts recommendation on human capital

The Council has adopted a recommendation on human capital that will help member states tackle labour and skills shortages across the EU, with a view to boosting competitiveness and resilience.

Human capital is Europe’s greatest asset. With persistent labour and skills shortages affecting strategic sectors from health to digital technologies, today’s recommendation marks a decisive step to strengthen our competitiveness, resilience and social cohesion by investing more effectively in people’s knowledge, skills and potential.

Marinos Moushouttas, Minister of Labour, Republic of Cyprus

Why is a recommendation needed?

Human capital – the knowledge, skills, experience, education and training that help an individual or team achieve their professional or personal goals – is key to Europe’s competitive strength and economic resilience. The EU is facing a persistent shortage of workers and skills, with the most widespread shortages in areas of strategic importance such as health, farming, ICT, civil engineering and education.

Advances in technology and the green and digital transitions are expected to further increase the demand for new skills and exacerbate existing shortages. Likewise, demographic challenges – particularly an ageing population – are likely to place additional pressure on labour markets.

A shortage of skilled workers can also hamper investment and innovation: in 2024, 77% of companies in the EU said that skills shortages were a barrier to long-term investment.

Addressing skills shortages

In its recommendation, the Council calls on member states to address skills shortages in sectors that are strategically important to the EU’s competitiveness and resilience, including digital technologies, health, farming and defence.

Recognising that four in five adults acquire skills through job-related training, the Council also encourages the development of partnerships between education and training providers, businesses, and other key stakeholders such as public employment services.

Strengthening basic skills

The Council acknowledges that many learners, and particularly those from a disadvantaged background, face challenges in acquiring the basic skills that enable them to actively participate in the labour market. It therefore calls on EU countries to boost skills acquisition across all ages and levels of education and training, with a particular focus on disadvantaged groups, including persons with disabilities. In particular, it recommends ensuring fair access to high-quality early childhood education and care, and increasing the attractiveness of the teaching profession.

Vocational education and training (VET)

Vocational programmes and apprenticeships are often perceived as unattractive, despite high employment levels for graduates (in 2024, 80% of VET graduates were in employment). The Council therefore encourages member states to boost the attractiveness of VET and apprenticeships, particularly for underrepresented groups such as women.

STEM programmes

The demand for science, technology, engineering and mathematics (STEM) professionals is growing, driven by technological developments including the rise of AI.  Although STEM subjects remain popular with students, around half of EU countries reported a decline in enrolment levels between 2015 and 2023. The Council calls on member states to increase the capacity, relevance and attractiveness of university and higher-level vocational programmes in STEM, with a particular focus on female students.

Investing in education

The Council recognises that public finances alone are insufficient to bridge the skills gap, particularly when it comes to helping adults upskill and reskill. It its recommendation, it calls for an approach to investment in education, training and skills that combines public spending with private investment and makes use of EU initiatives such as the European Social Fund Plus and InvestEU. It also encourages member states to monitor and evaluate these investments at local, regional and national level to ensure that spending is cost-effective and based on evidence.

Skills intelligence

Accessible, easily understandable, targeted and up-to-date skills intelligence is essential for effective and future-proof training policies, as it allows member states to forecast future demand for a given occupation. The Council’s recommendation encourages member states to develop and apply methodologies for the use of big data and AI to provide better and timelier skills intelligence, and to use this intelligence more regularly in areas such as careers guidance and curriculum design.

Background

This is the first time that the Council has adopted a recommendation on human capital as a tool within the European Semester to address labour and skills shortages. It complements the employment guidelines that are adopted yearly. The overarching aim of the Semester autumn package is boosting the EU’s competitiveness, which requires a skilled workforce.The recommendation was initially announced by the Commission in March 2025 as part of the Union of Skills, and was included in the European Semester Autumn Package that was published in November 2025.

• Council recommendation on human capital in the European Union
• The Union of Skills (Commission communication)
• The European Semester explained (background information)

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