A Skills‑First Labour Market Getting Skills Right A Skills‑First Labour Market This work is issued under the responsibility of the Secretary-General of the OECD, and does not necessarily reflect theofficial views of OECD Member countries. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use ofsuch data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements inthe West Bank under the terms of international law. Please cite this publication as:OECD (2026),A Skills-First Labour Market, Getting Skills Right, OECD Publishing, Paris,https://doi.org/10.1787/2e1b85f0-en. ISBN 978-92-64-82306-8 (print)ISBN 978-92-64-65442-6 (PDF)ISBN 978-92-64-66907-9 (HTML) Getting Skills RightISSN 2520-6117 (print)ISSN 2520-6125 (online) Photo credits:Cover © PeopleImages/Shutterstock.com. Attribution 4.0 International (CC BY 4.0) This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/).Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of the original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword Labour markets across OECD countries are undergoing profound change. Digitalisation, demographicshifts, the green transition and evolving business models are reshaping job requirements and the natureof work. Employers report persistenttalentshortages, even as formaleducationalattainment continues torise. At the same time, many adults struggle to have their skills recognised when moving across sectors,regions or learning pathways. Together, these developments have prompted growing attention to skills-first approaches that place demonstrated skills, rather than credentials alone, at the centre of labour marketand learning systems. This report examines why skills-first approaches to hiring, talent management and skills development arebecoming essential to improve labour market functioning and productivity. It explores the foundationsrequired to support such approaches, including, among others, the development of a common skillslanguage, the integration of modular and micro-credential learning into education and training systems,the adoption of skills-first human resource practices within firms, and the role of career guidance andrecognition of prior learning in linking learning to jobs. By examining emerging practices and policyexperiences across countries, this report aims to inform governments, employers, training providers andother stakeholders seeking toembarkon, and continue,their skills-first journey. Placing skills at the centreof labour market and adult learning policies is not an end in itself. It is a means to support economicdynamism, resilience, and social mobility in a period of sustained transformation. Thisreport was drafted by Shizuka Kato, Michele Tuccio andRoland Tuszfrom the Directorate forEmployment, Labour and Social Affairs. The work was led byMichele Tuccio(Senior Economist)andsupervised byGlenda Quintini (Head of the Skills and Future Readiness Division).The authors would liketo thank all respondentsto the OECD Trends in Adult Learning Policy Questionnaire 2025, as well as theEmployment, Labour and Social Affairs Committee,for their valuable feedback.They are also grateful tocolleagues from theCentre for Skills-First Practices at the Singapore University of Social Sciences-Institutefor Adult Learning (SUSS-IAL)for their collaboration in developing theSkills-First Readiness and AdoptionIndex.Finally,the authors gratefully acknowledge the administrative an