“Competitiveness and Social Rights are two sides of the same coin”
“With one in three 15-year-olds struggling in basic mathematics, only half of EU adults equipped with basic digital skills, and less than 40% engaging in training, how can Europe sustain its digital and green transitions while staying globally competitive?” asks the European Commission.
The 2025 edition of the European Employment and Social Affairs Forum, themed “Skills for a Competitive Europe,” was established to illuminate this issue.
The Forum has brought together 4,000 online and in-person participants to discuss the future of skills, competitiveness, and social inclusion in the European labour market.
It coincided with two historic milestones: the adoption of the Union of Skills and the signing of the New Pact for EU Social Dialogue.
The new Pact establishes a long-term framework with concrete actions to be taken by the Commission and social partners to strengthen and expand the scope of social dialogue and promote stronger consultation of social partners.
As a recognized European Commission social partner, CEC European Managers played a key role in negotiating this new pact for social dialogue.
During yesterday and today’s forum, European Commission Executive Vice-President Roxanna Minzatu congratulated social partners on achieving this deal.
Olga Molina (CEC European Managers Director) and Pere Vilanova (CEC European Managers Communication Officer) represented CEC European Managers at the event.
Union of Skills: A Turning Point for EU Workforce Development
Mario Nava, Director-General of DG Employment, Social Affairs and Inclusion (EMPL), opened the event with key announcements, including that the EU Commission has finished and adopted the Union of Skills today “within the first 100 days of the new EU Commission.”
Nava explained that a Women’s Roadmap for Jobs and Skills and a Quality Jobs Roadmap are in the works because “Competitiveness and Social Rights are two sides of the same coin.”
The Director General at DG EMPL underscored the importance of the European social model and the need to reskill European workers.
“We have an aging workforce; 1 million workers will retire each year in the European Union, and only 40% of our active workforce are currently participating in active training, still far from the 60% the member states aim for by 2030.”
Mario Nava
DG EMPL
“Half of EU citizens lack digital skills,” said Nava, adding that with an allocation of 150 billion euros, “I’m optimistic, we must identify the gaps.”
Key Discussions: AI, Mobility, and Upskilling
Sanna Marin, Former Prime Minister of Finland, emphasized the need for continuous education and workforce training. “Many employers do not feel the need to reskill their workers, which is a societal issue, as educated citizens have more democratic values.”
In Finland, over 60% of vocational school students are adults. This shift reflects a growing recognition of the need for continuous learning and reskilling in an evolving job market.
During the dialogue with Mario Nava, Sanan Marin addressed several pressing issues, particularly in the realms of AI, skilled migration, and housing policies.
She emphasized that AI and automation will not necessarily disrupt workforces but can contribute positively when integrated thoughtfully into vocational training.
On the subject of skilled migration, she argued that the European Union must work towards common solutions rather than fostering internal competition among member states.
Addressing economic security, she noted that the EU is developing a holistic anti-poverty strategy to tackle housing challenges across the continent. She explained that in Finland, homelessness is widely addressed by several policies, not just those in the social affairs category.
Ryan Roslansky, CEO of LinkedIn, provided crucial labour market insights from the global platform, revealing a 17.1% increase in job applicants in the EU over recent months, even as total job opportunities have declined by 2%.
Linkedin’s CEO also highlighted a significant shift in the way workers and employers engage with AI, with LinkedIn seeing a 20x increase in members adding AI skills to their profiles over the past two years, alongside a 300% increase in demand for AI-related talent.
Geographically speaking, the top three EU countries leading in AI skills are Estonia, Ireland, and Cyprus.
Roslansky stressed that the nature of jobs is rapidly evolving, with 70% of job skills expected to change within the next decade.
He urged recruiters to prioritize skills over traditional educational credentials, arguing that the biggest challenge facing the labour market is not AI itself but the mindset that shapes its adoption and implementation.
EU Perspective: Balancing Competitiveness and Social Rights
She argued that the EU’s competitiveness cannot be achieved through wage reductions but must instead be anchored in skills and training, quoting Mario Draghi’s report (download it here).
Anderson emphasized that “facing insecurity during the transition” must be a priority for EU policymakers.
AI is already reshaping workplaces across the continent, and while “the AI Act provides an initial regulatory framework,” Anderson insisted that “it is not enough to address the technology’s impact on labour markets fully.”
She called for additional measures to ensure AI fosters employment opportunities rather than causing disruptions.
“The EU’s ambitious goal of having 60% of adults engaged in training programs by 2030, is a significant increase from the current participation rate of just 35%”
Li Anderson
Chair of the European Parliament Committee on Employment and Social Rights
In conclusion, she urged employers to take on greater responsibility for upskilling their workforce.
National Perspectives on Skills Development
Niki Kerameus, Greece’s Minister of Labour and Social Security, outlined an ambitious vision for the country’s workforce, emphasizing the need for digital literacy, reskilling, and employment programs.
To ensure that 80% of Greek citizens are digitally literate by 2030, Greece is implementing strategies to address skills mismatches through dual training programs, reskilling and upskilling initiatives, and subsidized employment schemes.
These efforts have already contributed to a 15% drop in the unemployment rate, which has already been significantly reduced.
Celeste Drake from the International Labour Organisation highlighted that 3.8 billion people worldwide still lack access to social benefits, underscoring the persistent gaps in labour and social protections.
Dominique Hermans of Randstad noted a fundamental shift in worker priorities, with work-life balance now taking precedence over salary.
Patrick Benammar from Renault Group emphasized the importance of career development opportunities, warning that employees are more likely to leave companies that fail to offer growth prospects.
Meanwhile, Cillian Nolan from J-PAL Europe stressed the need for more evidence-based anti-poverty policies to ensure effectiveness.
A key component of the discussions was the European Union’s approach to skills development, presented by EU Commissioner Roxanna Minzatu.
She introduced the four pillars of the Union of Skills, which aim to strengthen workforce capabilities across member states.
The first pillar focuses on improving basic skills, addressing concerns such as the fact that one in three teenagers struggles with fundamental math proficiency.
The second centers on reskilling and upskilling, recognizing the necessity of industry restructuring to create a circular workforce.
The third pillar promotes internal mobility, with the EU fostering visa programs for skilled migrants in collaboration with emerging countries like India.
The final pillar seeks to stimulate action from member states, leveraging the EU Semester as the most suitable governance tool to drive labour market reforms and accompany the 27 in implementing the Union of Skills action plan.
Finally, Minzatu concluded, “With the New Pact for Social Dialogue signed today, we have renewed commitment to strengthening cooperation between governments, employers, and workers in shaping the future of Europe’s labour market.”
Competitiveness vs. Inclusion
The second day of the EU Employment and Social Affairs Forum brought a critical debate on whether Europe can simultaneously achieve competitiveness and inclusivity.
Julia Olofsson from Ingka Group – IKEA underscored the challenges businesses face in societies marked by inequality, stating that “unequal societies are difficult for companies to operate in” while highlighting that “61% of our customers worldwide want us to help reduce inequalities.”
According to Olofsson, gender equality has gained traction in the business world, with Ingka making strides in this area—”50% of our managers are women, and almost half of our countries’ CEOs are women.”
These figures underscore how social progress can contribute to corporate success and economic stability.
Riikka Åstrand, Deputy Mayor of Vantaa, provided insight into the changing demographics of Finland, noting that “almost 30% of our citizens are from an immigrant background, compared to just 10% a decade ago.”
She also pointed to a key challenge in governance, explaining that “strict GDP regulation sometimes gets in the way, especially when it comes to sharing information between sectors and organisations regarding sensitive groups, like youth employment.”
Bureaucratic rigidity often hampers efforts to support vulnerable populations effectively.
A recurring theme was the role of regulation and public funding in shaping the labour market. Eric Thode from Bertelsmann Stiftung stressed that “only what gets measured gets done” and that the EU must “set overall goals and assess how member states achieve them.”
He warned of the “Matthew effect,” which suggests that those already benefiting from training are more likely to continue doing so, leading to greater inequalities. To counteract this, he called for better integration of underrepresented groups in the labour market.
In Sweden, regulatory frameworks are seen as valuable. Irene Wennemo, Director General of the Swedish National Mediation Office, noted that “regulation is widely accepted in Sweden” and has public support, ensuring that policies promoting fairness do not hinder economic growth.
She also pointed to global education trends, cautioning that “EU education systems are quite okay, but Asia seems to be getting better results,” highlighting the need for continuous improvement to keep Europe competitive.
In that sense, reflections on the public and private partnership to maintain Europe’s leadership in the MBA sector, with 6 in 10 European universities being the best in the world, according to the Financial Times, also took place.
“We together have to pay for the Union of Skills, and we have to make a better use of our available funding,” said an expert from the European Commission. “We also want to engage financial institutions and create financial products to sustain this effort,” she added.
The discussion also concerned the European Union’s role in facilitating labour market transitions. Olofsson pointed to the need for simplified procedures, arguing that “the Union of Skills is good news, but we need to harmonize labour markets and recognize training across borders.”
Experts from the European Commission, the OECD, and the European Investment Bank presented key data outlining the transformations ahead. They noted that “30% of workers are in transforming sectors,” highlighting the scale of change affecting European industries.
The renewable energy sector alone is expected to require between 130,000 and 145,000 additional skilled workers, reinforcing the urgency of reskilling initiatives.
At the same time, Europe must contend with demographic changes and digital transformation, with 42% of Europeans still lacking digital skills.
One of the most significant moments of the discussion came when Klaus Heeger, President of the Confederation of Independent Trade Unions (CESI) posed a key question: “Can you tell concrete success stories from the European Pillar of Social Rights?”
In response, two significant legislative achievements were highlighted.
First, the Minimum Wages Directive, which now makes it illegal under EU law to weaken minimum wage protections.
Second, the Platform Workers Directive, which prohibits fake self-employment contracts, ensures that millions of platform workers receive proper labour protections.
These achievements underscore the impact of the EU Pillar of Social Rights in shaping a more inclusive and fair labor market.
With a shared commitment to balancing competitiveness with social inclusion, the forum reaffirmed the necessity of equipping Europe’s workforce with the capabilities needed to thrive in a rapidly changing world.
Finally, the debate on European defense also dominated all the panels and discussions, with contributions related to the transformation of workers’ skills to address defense issues.
It is important to note that the above emerging sectors are male-dominated, and that a non-biased management approach will be crucial to ensure productivity and competitiveness.
Our #BeyondBias recommendations will be helpful for this path.
EU Commission Executive VP, Roxanna Minzatu, with Ryan Roslansky (CEO at Linkedin)
