The 2024 Draghi Report on the future of EU competitiveness highlighted that digital skills are a key factor affecting the EU’s successful digital transition, and the ambitions set out in the EU’s Digital Decade programme are that, by 2030, at least 80% of all adults should have at least basic digital skills.
However, the 2025 State of the Digital Decade report reveals that despite growing awareness of the need to boost digital skills across society, the pace of progress remains insufficient. In 2023, only 55.6% of adults had at least basic digital skills, and based on current trends, the EU is expected to reach a level of just under 60% by 2030, falling significantly short of the 80% target.
Additionally, the European Pillar of Social Rights Action Plan, sets out that by 2030, at least 78% of people aged 20-64 should expect to be employed. While this is a great target, it does, however, bring into play another factor that should be considered to make it a reality: people’s skilling, especially as currently 80% of employers and nearly 4 in 5 SMEs in the EU are reporting difficulties in recruiting people with the right skills and qualifications to match their requirements. Furthermore, the EU is projected to lose one million workers every year until 2050 as the population ages.
Once the current workforce retires, who will fill their shoes?
Why skilling and upskilling are key to Europe’s future
Europe is facing a growing mismatch between the skills people have and those employers need. Around 80 million workers, that’s one in five, are in roles misaligned with their skills, whether they’re over- or under-qualified. This skills mismatch means it is challenging for both job seekers and businesses to discover qualified candidates.
At the same time, skills gap shortages are a common challenge for EU member states, across IT, construction, engineering, which could threaten the EU’s twin transition to digital and green. Member states warn that without boosting support for training and education, particularly for people who are currently underrepresented in the labour market, innovation could stall and the push for sustainability could fall flat. In response, the new “Union of Skills” initiative prioritises upskilling for the digital and green transformation, aiming to build a workforce that’s adaptable, innovative, and competitive.
Upskilling doesn’t just address shortages, it helps boost productivity too. Shifting toward a more skilled workforce has become a strong driver of efficiency and economic output, possibly more so than capital deepening, especially in the EU.
By equipping workers with the right tools; digital literacy, sustainability know-how, hybrid profiles, etc., the EU strengthens its resilience and social inclusion, while giving innovation the fuel it needs to thrive.
From EU policy to practice
EU schemes aren’t just words on paper or isolated efforts. Together they’re funding, structures, and real change in action.
The EIT Deep Tech Talent Initiative
Launched in 2023, led by the European Institute of Innovation and Technology (EIT), its goal was to skill, reskill, and upskill one million talents in deep tech by the end of 2025, to address the talent gap, foster innovation, and develop a strong talent pool across Europe that can leverage the new technologies for the green and digital transition.
By empowering and equipping its workforce with cutting-edge skills, the EIT Deep Tech Talent Initiative also helps ensure that European industries remain at the forefront of global innovation, solidifying the region’s role as a leader in deep tech and securing its future in an increasingly competitive technology-driven world. From 2026-2028, the EIT Community initiatives will add considerable value to the Union of Skills and its STEM Education Action Plan through its catalogue of training programmes, network of training providers, and funding opportunities for course creation
European Skills Agenda
Launched in 2020, the European Skills Agenda is a five-year plan to help individuals and businesses develop more and better skills and to put them to use, by:
- strengthening sustainable competitiveness, as set out in the European Green Deal
- ensuring social fairness, putting into practice the first principle of the European Pillar of Social Rights: access to education, training and lifelong learning for everybody, everywhere in the EU
- building resilience to react to crises, based on the lessons learnt during the COVID-19 pandemic
In 2022, only 39.5% of adults aged 25–64 took part in learning, but the target is 50% by 2025, while only 18.4% of low-qualified adults are participating, versus a 30% goal. The Skills Agenda also includes tools like micro-credentials, individual learning accounts, and the revamped Europass to make learning more flexible and transparent.
The Pact for Skills is one of the flagship actions of the European Skills Agenda, and aims to support public and private organisations with upskilling and reskilling, so they can thrive through the green and digital transitions. Members of the Pact have access to knowledge on upskilling and reskilling needs, advice on relevant funding instruments to boost the skills of adults in their regions and countries, and partnership opportunities within the EC’s growing community.
Digital Action Plan (2021-2027)
The Digital Education Action Plan (2021–2027) aims to help national education and training systems adapt to the digital age. It calls for greater cooperation at EU level to address the challenges and opportunities arising from the accelerating digital transformation. It also seeks to enhance support for teachers, students, policy makers, academia and researchers at national, EU and international level.
The opportunities and challenges ahead
With the increasing demand for skills in AI, data analytics, cybersecurity, and cloud computing, as well as problem-solving and critical thinking skills, training models are shifting toward modular, challenge-based learning that blends tech know-how with resilience.
And these shifts are bringing clear benefits.
- Workers become more employable
- Businesses tap into innovation and adaptability
- The overall economy gains resilience and sustainable growth
However, even though 95% of all SMEs say that it is important for their business model to have workers with the right skills, across Europe, according to the European Investment Fund’s (EIF) working paper ‘The European Small Business Outlook 2024’ structural challenges persist in SME financing. While 14% of SMEs use bank loans, nearly half consider them relevant but inaccessible. Equity financing faces even greater hurdles: although 12% of SMEs see it as a relevant funding source, only 1% actually acquire it, reflecting significant barriers to its use.
Scaling impact means breaking these barriers. It will take more outreach in underrepresented regions, simpler access to training and funding, and policies that bring micro-credentials and AI modules to life, not just in capitals, but in every corner of Europe.
Join us at the EIT Education and Skills Days event series on 15 October 2025, where we will be hosting several panels and networking activities around STEM education, that will celebrate the impact of the initiative and amplify inspiration beyond 2025.
Registration is now open and seats are limited! Make sure you secure your spot now! 👉 https://bit.ly/ESDtk
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