Placing skills acquisition at the forefront of learning reframes the role of credentials and refocuses education policy on three interrelated dimensions, which structure the analysis of this chapter. First, skills-first approaches promote greater granularity by treating credentials as organising frameworks that bundle clearly specified skills, with modules and micro-credentials providing practical illustrations. Second, skills-first approaches strengthen the emphasis on learning outcomes, improving the alignment between provision and evolving labour market needs. Third, skills-first learning moves beyond the notion of education as a fixed endpoint and instead situates skills development within a continuous, lifelong process, shaped by the interactions of education providers, employers and public authorities.
A Skills‑First Labour Market
Abstract
Education and training must recentre around skills to support lifelong learning
Aligning adult learning systems with the needs of a skills-first labour market requires shifting to a paradigm where qualifications are structured as clear bundles of skills that can be acquired, recognised and updated incrementally over the life course.
Modularisation provides the foundation for incremental and personalised learning pathways. By structuring provision into discrete units with clearly defined outcomes, systems can enable learners to progress at their own pace, reduce the risk associated with long programmes, and strengthen recognition of prior learning. However, these gains materialise only where credit transfer arrangements, qualification frameworks and data systems ensure that modules are portable and stackable rather than fragmented. For instance, VET schools in Czechia recently piloted a systematic modularisation of curricula to strengthen reskilling and upskilling capacity and better align provision with labour market needs.
Micro-credentials translate modularity into practice for targeted upskilling and reskilling. They can respond quickly to emerging skill needs and offer flexible entry points for adults. Their credibility as labour market signals depends on transparent learning outcomes, robust assessment, trusted awarding bodies and integration within recognised credit and quality assurance frameworks. In New Zealand, for example, national quality standards help underpin this credibility, with each micro-credential reviewed to ensure its labour market relevance.
To keep learning provision aligned with evolving labour market demand, employer engagement needs to be systematic rather than ad hoc. Employers can contribute to the design of learning content by helping to translate skills intelligence into training standards and curriculum updates. They can also strengthen delivery by offering work-based learning opportunities and, in some cases, developing targeted online provision themselves. In Ireland, 70 Skillnet Business Networks, each representing a specific sector or region, provide a structured mechanism for sustained employer engagement in adult learning.
Skills-first learning requires a lifelong learning culture, supported by policies that address barriers related to motivation, time and cost through flexible delivery, training leave arrangements and innovative financing instruments such as individual learning accounts.
As labour markets evolve at an increasing speed and working lives lengthen, learning systems face increasing pressure to adapt. Education and training have traditionally been organised around programmes, institutions and qualifications. While these elements remain important, they often provide limited information about the actual skills learners possess upon completion (see Chapter 1). They also offer limited guidance to individuals and employers on how learning connects to changing skill demands. In doing so, they may reinforce the perception that earning a credential represents the end point of learning rather than a step within a longer trajectory.
Placing skills acquisition at the forefront of learning responds to this challenge by reframing the role of credentials. It shifts attention from inputs to outcomes and makes the concrete, usable skills that training is expected to deliver explicit, with qualifications serving as complementary organising frameworks. Under this approach, credentials become transparent bundles of skills rather than ends in themselves. Learning systems are thus better positioned to align with labour market needs and to support the recognition and accumulation of skills over time.
Skills-first learning does not represent a conceptual rupture with past frameworks. Rather, it renews and sharpens emphasis on three longstanding elements in education policy: more granular forms of learning, such as modules and micro-credentials; stronger alignment between training provision and societal and economic needs; and a sustained commitment to learning throughout the life course (Figure 3.1).
Source: Authors’ elaboration.
First, skills-first approaches promote greater granularity. Learning outcomes are articulated at the level of skills, ideally using a common skills language, as described in Chapter 2. This allows learning pathways to be structured as coherent combinations of smaller units, each focused on the development of clearly defined skills. Modularisation and micro-credentials exemplify this approach by enabling learners to acquire targeted competencies, progressively combine them into broader skill portfolios, and update their skill sets over time in response to evolving needs. The emphasis on discrete units also enhances transparency and portability between institutions and sectors.
Second, skills-first approaches emphasise the relevance of learning outcomes. The objective is not simply the acquisition of skills, but the development of skills that are valuable to learners, employers and society. This requires drawing on skills information, including skills-focused occupational standards as well as skills assessment and anticipation data (see Chapter 2). It also entails engaging employers in the design and delivery of training. Where appropriate, applied pedagogical approaches, such as work-based learning and problem-based learning, can strengthen the development of both technical and transversal skills by embedding teaching in authentic contexts of practice.
Third, skills-first approaches remove the notion of a fixed endpoint to learning and instead frame skills development as a continuous, lifelong process. Neither the completion of initial formal education nor the acquisition of a credential constitutes the ultimate goal. Rather, these are milestones within an ongoing process of skills development. Individuals are encouraged to regularly assess their skill sets against changing labour market demands and to engage in continuous upskilling and reskilling.
The case for modularisation
Adult learning systems centred on long and front-loaded qualifications are increasingly ill suited to evolving labour markets and the constraints faced by working adults. A skills-first approach therefore requires learning pathways that enable the progressive accumulation of clearly defined competencies through smaller units – modules – that can be combined over time. A module is a discrete unit of learning with defined learning outcomes, which may form part of a wider programme or be undertaken independently. By extension, modularisation refers to the systematic reorganisation of education and training provision around such units, rather than a simple expansion of the supply of short courses. It therefore represents a reform of programme architecture, not a change in certification. A shift toward modularisation represents the foundation for incremental learning pathways.
Modularisation offers three interrelated advantages. First, modularisation increases the scope for personalised upskilling pathways. Learners can progress through learning units at their own pace, accumulating modules over extended periods rather than committing up-front to long, continuous programmes. In well-designed systems, modules can be combined across programmes, providers and, in some cases, across sub-sectors such as general adult learning, VET and tertiary education. However, this flexibility depends on robust credit transfer arrangements and interoperable qualification frameworks that ensure modules are portable and stackable rather than isolated.
In the context of Czechia’s Modernisation of Vocational Education (Modernizace Odborného Vzdělávání) reform, secondary VET schools piloted a systematic modularisation of curricula as part of a broader effort to align provision with labour market needs and strengthen reskilling and upskilling capacity. The reform reorganised existing programmes into discrete certifiable units, enabling partial completion, facilitating transitions across levels and fields, and allowing curricula to be updated more flexibly in response to employer demand. By publishing all modules as open educational resources, the initiative also laid groundwork for wider re‑use and potential development of VET-oriented micro-credentials (see following sub-section), provided that recognition and credit arrangements are sufficiently embedded in the system.
Second, modular provision can widen access to lifelong learning by lowering both practical and psychological barriers to training. OECD (2025[1]) shows that a lack of time due to work or family obligations is the most common barrier to adult learning. Smaller learning units are more accessible for those who may lack the time, confidence or resources to commit to full programmes. Furthermore, providing recognition at earlier stages reduces the risk of investing in learning, as individuals do not have to complete a lengthy programme before obtaining a formally recognised qualification. Partial recognition mitigates the all-or-nothing structure typical of lengthy qualifications and supports learners’ confidence and momentum through visible progression. Certifying even partial completion also makes it easier for individuals to re‑enter learning following interruptions linked to work, family or health. At the same time, it is important to note that modularisation alone does not guarantee higher participation rates; without complementary measures such as targeted outreach, guidance, and financial support, modular systems may favour learners who are already better positioned to navigate complex education and training landscapes. Adoption of flexible learning policies, such as digital delivery of learning and assessment and open learning schedules, can further improve the accessibility of modular learning.
For example, Mexico’s Model for Life and Work Programme (Modelo Educación para la Vida y el Trabajo, MEVyT) was designed to help adults with low levels of formal education obtain primary and lower-secondary qualifications through a series of self-contained learning modules, each with clearly defined learning outcomes that could be progressively accumulated and eventually build toward a full credential. Learners can select modules according to their circumstances and take advantage of flexible learning modes, including online provision and in-person learning at community centres (OECD, 2019[2]).
Third, modular architectures provide a basis for more systematic recognition of prior learning. Clearly specified learning outcomes can be more easily assessed, matched and recognised, facilitating the validation of skills acquired through formal, non-formal or informal learning. On the other hand, if recognition systems are weak, modules lose their value, as learners may struggle to transfer credits or progress further. By awarding recognition for each completed unit, modular systems emphasise demonstrated skills rather than requiring individuals to finish a full qualification before any formal value is attached to their learning.
In recognition of these advantages, many OECD countries have integrated modular principles into formal education systems (see Figure 3.2). In higher education, this often takes the form of unbundling degree curricula into credit-bearing units that can be undertaken independently and later accumulated. For example, in Finland and Sweden, higher education institutions offer free‑standing modules (typically 5‑30 ECTS) that can be accumulated towards degrees within legal frameworks. In VET, modularisation is being used to restructure curricula, making progression more incremental and facilitating movement across programmes. For example, in Austria, apprenticeship qualifications are composed of a combination of both core and optional specialisation modules, enabling learners to build more personalised profiles while retaining a coherent qualification framework. Even outside formal education, tools such as micro-credentials are increasingly becoming a non-formal learning option (see the following subsection).
Note: Responses to a question about the extent to which flexible learning approaches – specifically “modularisation of learning pathways” – have been implemented nationally. OECD countries and jurisdictions with available data, as well as Singapore, are shown.
Source: OECD Trends in Adult Learning Policy Questionnaire 2025.
Despite its advantages, modularisation introduces system-level trade‑offs. Excessive fragmentation risks creating learning dead ends without clear progression pathways and increasing complexity for learners. Highly flexible modular systems therefore require strong governance, including clear standards, transparent credit systems and integrated data infrastructures. Such mechanisms anchor learner autonomy within a coherent architecture and safeguard alignment with longer-term skill formation objectives (OECD, 2023[3]).
Denmark is an interesting case, having balanced the benefits of establishing a modular system while preserving coherence. Learners in Denmark can combine modules across different programmes and providers, including general, vocational and higher education institutions. In general adult education, modules can accumulate towards a full qualification granting access to further study, while in other parts of the system they can be assembled into a documented portfolio of skills, which may subsequently be recognised as partial learning in the form of credits. This flexibility is underpinned by robust administrative infrastructure. Each module is formally certified, in both paper and electronic form, and all completed modules are recorded against the individual’s civic personal number. This allows learners and providers to track progress over time and across institutions. Because certificates are referenced to the Danish Qualifications Framework, accumulated learning remains visible and recognised across the system, supporting progression and sustained rates of full qualification attainment (OECD, 2023[3]).
Micro-credentials as flexible adult learning instruments
Micro-credentials operationalise incremental and modular learning within skills-first systems.1 Defined as short, targeted learning that certifies mastery of specific skills (OECD, 2021[4]), micro-credentials are an ideal tool to develop, certify or signal discrete labour-market relevant skills without needing to incur the substantial costs associated with completing longer qualifications. They can be stand-alone units or be combined towards larger skill domains; some higher education institutions, for instance, unbundle degree programmes into individual micro-credential modules or short certificates, enabling learners to engage in education incrementally rather than through a single, high-commitment qualification. In this way, micro-credentials provide a practical mechanism for modularisation, lowering barriers to participation while preserving progression pathways towards formal qualifications where appropriate (OECD, 2021[5]).
Because they certify discrete and clearly defined competencies, micro-credentials enhance the precision of skill signalling in a way that broad qualifications cannot. By isolating and validating specific capabilities, they respond directly to specific skill gaps rather than bundling heterogeneous knowledge and skills into a single qualification. As such, micro-credentials are best suited to targeted upskilling and reskilling needs; this is particularly advantageous for mid-career adults who already possess a general qualification or occupational foundation and require only narrowly focused competencies to update technical skills or learn to use new tools. In this sense, micro-credentials operate primarily as complements to degrees and vocational qualifications, making specific skills available and communicable throughout the labour force (OECD, 2023[6]). Indeed, Singapore’s sector-specific micro-credentials embedded within the SkillsFuture architecture are explicitly framed as tools for mid-career upskilling and reskilling within defined Skills Frameworks. These frameworks map sectoral roles, required competencies and career pathways, allowing micro-credentials to certify clearly delimited skill sets aligned to occupational functions rather than broad fields of study. Another example is Microidea, a project piloting micro-credentials in the tourism sector in five European countries. Drawing on several sources, including ESCO, the project developed an occupational profile for waiters that identified both core and optional tasks. Micro-credentials were then designed to support upskilling in optional tasks, particularly those related to digital and green skills, such as green cleaning and digital marketing (Microidea, 2025[7]).
Another advantage of micro-credentials is their potential to increase the responsiveness of learning systems. Their short design, approval and delivery cycles allow providers to update content more rapidly than is typically possible within traditional qualification frameworks. Often delivered through digital or blended formats, micro-credentials enable rapid responses to emerging skill needs arising from technological change, sectoral restructuring or economic shocks. During the COVID‑19 pandemic, for example, governments and institutions expanded micro-credential provision to address urgent upskilling needs, highlighting their potential as short-cycle policy instruments to support labour-market adjustment. This agility makes micro-credentials particularly relevant in sectors characterised by rapid skill obsolescence, and allows them to act as testing grounds for new content that may later be integrated into longer programmes (OECD, 2021[5]; 2023[6]). In the United States, the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL) develops short, industry-aligned micro-credentials in advanced biomanufacturing, designed in close collaboration with employers to address rapidly evolving production technologies and regulatory requirements. By aligning credentials to employer-defined occupational standards and targeting technicians and incumbent workers, NIIMBL enables rapid updating of training content in a sector characterised by continuous technological innovation and skills shortages.
The effectiveness of micro-credentials is greatest when they are embedded in trusted frameworks that make learning outcomes transparent and portable. Their value depends on the clarity with which they document the skills acquired, the assessment methods used, the workload involved, and the credibility of the awarding body. Where micro-credentials are aligned with recognised credit systems, quality assurance arrangements and employer engagement, they can convey meaningful information about a learner’s competencies (OECD, 2021[4]; 2021[5]; 2023[6]). Ireland’s MicroCreds initiative illustrates this approach. It developed micro-credentials within existing frameworks, with size defined as 1 to 30 credits within the European Credit Transfer and Accumulation System (ECTS) and level aligned to Levels 6 to 9 of the National Framework of Qualifications. Quality assurance is provided through extensions of existing institutional quality assurance arrangements, while labour-market relevance is supported through input from an Enterprise Advisory Group established for this purpose. This strengthens signalling value: employers and learners can interpret these micro-credentials within an established credit and qualifications architecture, rather than as stand-alone certificates of uncertain status. Hungary is pursuing a similar objective by strengthening the transparency, recognition and credibility of micro-credentials through the development of a unified framework that integrates them into established legislation across higher education, VET and adult learning (see Box 3.1) (Reform and Investment Task Force, 2025[8]).
The successful implementation of micro-credential policy requires a coherent strategy to embed micro-credentials within pre‑existing credential systems. In 2022, the European Union adopted a Council Recommendation establishing a common approach to micro-credentials for lifelong learning and employability. The Recommendation calls on member states to embed micro-credentials within recognised credit and qualifications frameworks so that they can be portable, stackable and trusted signals of skills across institutions and national systems. Particular emphasis is placed on the transparent documentation of learning outcomes, expected workload, and assessment arrangements, which are necessary conditions for credibility and cross border recognition (Council of the European Union, 2022[9]).
Hungary is one of several European countries to have recently undertaken reforms in this direction. In a landscape where short courses already existed – but were fragmented across providers and sectors – Hungary has sought to harmonise these offerings by establishing a single national micro-credential framework spanning higher education, VET and non-formal adult learning. A central element of this system-integration approach is the inclusion of micro-credentials within existing legislative instruments, including the Adult Training Act, Higher Education Act and VET Act. Attention has also been given to the practical infrastructure needed to support harmonisation, including the integration of micro-credentials into Hungary’s existing education and training information systems, with a focus on interoperability and alignment with European standards (Reform and Investment Task Force, 2025[8]).
Similarly, in Czechia, efforts are underway to establish a unified national strategy for micro-credentials in response to the fact that existing initiatives have developed in silos across different parts of the education and training system. In higher education, notable progress has been made, with public higher education institutions collaborating to develop a common micro-credential framework. In VET, programmes are being modularised to increase flexibility for learners. At the same time, a wide range of short non-formal training programmes is being offered under the piloting of individual learning accounts. In this complex policy landscape, discussions are underway to build a national system that can bring greater coherence to the different approaches adopted across sectors (OECD, n.d.[10]).
Table 3.1 summarises selected micro-credential initiatives across a range of jurisdictions. Various governance models are possible: some are embedded within national qualifications frameworks and administered by public authorities, while others are anchored in higher education systems through credit-based design, and still others are sector-led initiatives aligned directly to employer-defined occupational standards. Despite these differences, they share a common logic: each uses small, certified units of learning to introduce greater flexibility, enable incremental skill accumulation and respond to targeted upskilling and reskilling needs. In doing so, they translate modularisation into practice and enable more precise signalling of skills.
For micro-credentials to advance a skills-first agenda, their benefits must extend throughout the labour market, including to disadvantaged or low-skilled adults. Yet evidence from many countries shows that take up is concentrated among individuals who already have tertiary degrees and financial support, often from their employers (OECD, 2023[6]). When public funding and student support remain primarily oriented towards full time degree study, lower qualified adults face structural barriers to participation. In this context, expanding micro-credential supply without adapting funding rules, guidance services and outreach strategies risks entrenching existing inequalities in skill accumulation rather than narrowing them (OECD, 2021[5]; 2023[6]). Embedding micro-credentials within a coherent skills-first architecture is therefore essential. This requires robust quality assurance and assessment arrangements, interoperable credit systems, employer involvement in design or validation, and transparent pathways for recognition and progression. Clear information, consistent terminology and guidance mechanisms are also critical to help learners and employers understand the value of micro-credentials.
Ensuring portability through quality assurance
Quality assurance plays an important role in building trust, supporting portability and strengthening labour-market recognition. Extending quality assurance principles to shorter and more diverse forms of provision requires a stronger focus on demonstrable learning outcomes than on institutional form or delivery mode. To support this, providers need to define clearly what learners are expected to know and be able to do on completion (OECD, 2024[11]). These outcomes should be explicit, measurable and intelligible to external stakeholders. France’s Pix digital skills certification system illustrates how transparent learning outcomes can underpin credible micro-credentials. Pix is a national online platform for assessing and certifying digital skills against the Digital Competence Reference Framework (Cadre de référence des compétences numériques), which is itself aligned with the European DigComp framework. Skills are organised into clearly defined domains and proficiency levels, expressed as concrete “know-how” that describes what individuals can demonstrably do in digital environments. Certification follows standardised assessment and is overseen by Pix itself, with formal recognition through registration in the national directory of professional certifications managed by the authority for vocational qualifications, France Compétences.
At the same time, quality assurance of modular and short courses should be proportionate and risk sensitive. Applying full qualification-level quality assurance to every micro-credential would undermine the agility that makes modular provision attractive. A proportionate approach can safeguard minimum standards while allowing innovation, potentially increasing requirements with scale, public funding or formal recognition. OECD countries have tackled these competing priorities in different ways. In New Zealand, micro-credentials are subject to programme‑level accreditation by the New Zealand Qualifications Authority (NZQA), which conducts a structured review of content, assessment practices, delivery methods, and learning outcomes before approval and registration. This approach mirrors the rigour applied to formal qualifications and offers strong assurance of quality but can be more resource‑intensive and may slow the rapid deployment of short courses focusing on emerging skills. By contrast, Switzerland’s eduQua framework certifies adult learning providers themselves, rather than individual programmes, granting a quality label to institutions that meet minimum standards and undergo periodic audits. This reduces administrative burden and preserves agility but offers less direct assurance at the course level.
A coherent skills-first ecosystem rests on a tight link between skills development and skills recognition. Learning activities should therefore generate skills that are well valued in the labour market and in society more broadly. To achieve this, public authorities are strengthening policy instruments designed to steer participation towards in-demand skills. Evidence from the OECD Trends in Adult Learning Policy Questionnaire 2025 shows that around 60% of responding countries report implementing, to a large or very large extent, policies that guide individuals towards training in high-demand skills and/or incentivise providers to offer such training (Figure 3.3). More than one‑third report having similar policies to a moderate extent, suggesting a broad policy orientation towards skills-first learning.
Extent of policies designed to orient individuals and training providers towards high-demand skills and qualifications
Note: Responses to the question, “To what extent does your country implement policies or initiatives aimed at guiding or incentivising individuals to train in high-demand skills and qualifications, and/or at encouraging providers to offer such training (e.g. digital skills, skills for the green transition, health and care occupations)?”. OECD countries and jurisdictions with available data, as well as Singapore, are shown.
Source: OECD Trends in Adult Learning Policy Questionnaire 2025.
Employers play a central role in ensuring that training content reflects current and future skills demand (Figure 3.4). Firms have first-hand intelligence on occupational changes and can therefore identify gaps between existing provision and workplace needs and contribute to the specification of occupational and training standards. Their involvement can support programme development by co-designing curricula and learning pathways, including modes of delivery and duration. They can also contribute to delivery by offering work-based learning opportunities and providing industry practitioners as instructors. In some cases, employers act as providers themselves, developing and delivering training programmes internally. Employers can also be an important source of funding and provide a strong anchor for quality assurance by confirming industry relevance and evaluating training programmes and providers.
While employer involvement in education and training is not new, a skills-first approach reinforces the need for structured and continuous participation rather than ad hoc consultation. In fact, in many countries and sectors, particularly those with a tradition of vocationally oriented education, employers and providers have collaborated for decades. However, these connections often rely on personal relationships or individual institutions rather than structured arrangements and can sometimes lead to training that is tailored to the needs of particular firms rather than more widely transferable skills. As the demand for portability of skills across firms and industries increases, employer engagement needs to shift from bilateral, request-based consultation to structured, continuous participation in the design, delivery and evaluation of training.
Source: Authors’ elaboration.
Sectoral skill bodies represent a key mechanism for systematically engaging social partners in education and training (Table 3.2). In Australia, for example, ten Jobs and Skills Councils support VET provision across their respective industry sectors. Their functions include identifying skills and workforce needs, updating training curricula, supporting collaboration between industry and providers to strengthen assessment practice, and generating sector-specific labour market intelligence. Although sectoral skills bodies typically play an advisory role, in some cases they also contribute to delivery. Ireland’s Skillnet Business Networks play such a role, providing upskilling and reskilling programmes. For example, the Cultural and Creative Industries Skillnet offers short, targeted courses of around two to four months in areas such as ethical AI in creative industries, digital sculpting, and sound design for interactive media.
Expanding such mechanisms without increasing administrative burden or reducing agility could further support the development of in-demand skills. Sectoral skill bodies are often embedded in VET systems, but there is scope to extend their role to non-formal adult learning. In New Zealand, for instance, providers seeking quality assurance for micro-credentials must obtain written support from the relevant Industry Skills Board to show that the proposed training is relevant and meets labour market demand.
Many collaborations between training providers and employers also take place outside sectoral skills council frameworks. For example, in the United States, the Skills First Coalition, a consortium of around 20 employers and training providers, works to strengthen alignment between education and employment (Skills First Coalition, 2026[12]). Its activities include promoting diverse learning opportunities, such as short online and hybrid programmes and work-based learning; advancing the recognition of prior learning; co-developing skills frameworks that define credentials and courses in high-demand fields such as healthcare, technology, and logistics; and supporting the modernisation of O*NET to incorporate real-time labour market data and more accurately define the skills required for jobs. At the European level, the EU’s Pact for Skills similarly brings together public and private organisations to support collaborative commitments to adult learning that is responsive to labour market needs. It helps members connect with partners, promotes peer learning, and provides information on skill needs (European Commission, n.d.[13]).
Employers act directly as training providers as well. Work-based learning and apprenticeship schemes are one important form of employer-led training. In Switzerland, for example, Swiss Federal Railways offers paid apprenticeships for adults seeking a career change across more than ten occupations, including train drivers, operational planning specialists and traffic controllers (Swiss Federal Railways, n.d.[19]). Participants may enrol on either a full-time or part-time basis, providing greater flexibility. In Türkiye, the Turkish Employment Agency partners with companies to provide paid on-the‑job training for unemployed individuals (Turkish Employment Agency, 2026[20]). Standard placements last up to three months, but can be extended in priority sectors and for younger participants. For example, training in cybersecurity and cloud computing for participants aged 18 to 29 can last up to nine months. In addition, firms are developing online courses aimed at building specific technical skills, often focused on the use of their own products. Anthropic, for example, offers a range of online courses to support the effective use of its AI model, Claude, in both business and personal contexts (Anthropic, 2026[21]). Its training for individuals consists of a series of video-based lectures, leads to a certificate of completion and is offered free of charge.
Supporting employees’ broader skill development is another important dimension of firms’ engagement in training. Large firms may make skill development plans independently. Walmart, for example, offers both online and in-person training to support the development of job-specific and transversal skills, including leadership. It also provides employees with educational benefits by covering the cost of externally provided training of their choice, ranging from short courses to bachelor’s degrees. SMEs may choose to co‑ordinate with public authorities and other firms. Finland’s Joint Purchase Training system is a staff training scheme under which training activities are organised by the public employment service in co‑operation with individual employers or groups of employers seeking either to retrain existing staff or to establish training programmes for new staff (OECD, 2021[22]). Through this system, employers can receive funding and tailored support to recruit employees with the right skills or to adapt the skills of existing staff to technological and operational changes within the company.
A skills-first labour market requires skills to be developed, updated and reconfigured throughout the life course, not only during the initial cycle of formal education. Yet, across the OECD, participation in adult learning remains persistently low and unequal, with disadvantaged groups – including low-skilled adults, older workers, those in non-standard employment and individuals without employer support – participating the least (OECD, 2025[1]). Building a culture of lifelong learning is therefore essential to enable all adults to re‑enter learning repeatedly in response to evolving skill needs, supported by mechanisms that make such transitions normal, feasible and worthwhile.
Strengthening motivation and confidence to learn
For a substantial share of adults, poor engagement does not reflect formal exclusion, but rather a limited desire or confidence to participate. Nearly half of adults in the Survey of Adult Skills reported that there was no adult learning activity they wished to participate in over the course of the past year (OECD, 2025[1]). This may stem from negative prior schooling experiences, a lack of confidence in their ability to succeed, or scepticism about labour market returns. In some cases, suitable training provision may also be unavailable or poorly signalled.
Outreach strategies and guidance play a key role in reducing informational asymmetries, strengthening individual expectations of returns, and mitigating behavioural barriers that inhibit participation in adult learning, particularly when embedded within trusted local institutions. For instance, Austria’s Vienna Employment Promotion Fund (waff) illustrates how innovative outreach can help normalise adult learning. Established by the City of Vienna and operating in close co‑operation with the Public Employment Service (AMS) and social partners, waff combines counselling and financial support with creative communication strategies. Professionally produced social-media series portray individuals retraining into in-demand occupations such as elderly care or early childhood education, documenting their routines and career transitions. These campaigns are embedded within broader “social recruiting” efforts, including influencer partnerships, multilingual counselling, pop-up outreach in housing complexes and large‑scale events such as the Future Fit Festival. The goal of waff is to frame lifelong learning as socially recognised and attainable rather than exceptional.
Other initiatives use a highly targeted approach to raise awareness and confidence among specific demographic groups. For example, Italy’s SheTech initiative focuses on increasing women’s participation in AI and digital fields by combining visible role models with low-risk entry formats. Short, one‑day bootcamps allow participants to explore technical subjects before committing to lengthy programmes. Alongside technical content, SheTech integrates training in public speaking, leadership, personal branding and time management, explicitly addressing confidence and self-efficacy. Similarly, in Spain, Somos F5 engages under-represented groups in digital training via active community outreach through social media, local networks and targeted communication. Its strategy targets women, migrants and other groups distant from formal training systems. Entry barriers are lowered through discovery workshops and one‑month trial periods, allowing participants to test programmes before committing fully. A dedicated job placement co‑ordinator supports learners throughout, providing guidance on course choices, assisting with CV preparation and interview techniques, and linking training directly to employment opportunities (OECD, forthcoming[23]).
Addressing time and flexibility constraints
Even when motivation exists, time constraints linked to work and family responsibilities frequently inhibit participation. Among adults who wished to participate but did not, lack of time is the most frequently cited barrier, reported by approximately 45% (OECD, 2025[1]). This constraint becomes particularly acute in mid-career, when reskilling needs intensify in view of career changes (OECD, 2025[24]).
Two principal policy levers address time constraints. The first concerns flexible provision. Digital and blended learning models can allow adults to adapt the timing and mode of study to their responsibilities. Modularisation, asynchronous delivery, and online and hybrid formats enable learning to be sequenced in smaller units and organised more flexibly, reducing the need for extended absences from work. Uptake of these methods is prevalent in some countries. In Lithuania and Poland, over 40% of non-formal adult learning is already delivered at distance; the COVID‑19 pandemic accelerated use of these digital tools, in many cases (OECD, 2025[1]). Germany provides an example of how formal education providers can incorporate flexibility into their delivery: public adult education centres (Volkshochschulen) are encouraged to offer courses in varied temporal formats, including evening and weekend classes, flexible start dates and part-time study loads. Widening the range of scheduling options is associated with higher participation. Similarly, Australia’s national portal for finding micro-credentials, the MicroCred Seeker platform, signals the course duration, level, and delivery mode for courses up front (in addition to information on credits and stackability) so that learners can easily find learning opportunities that align with their time constraints while preserving transparency around progression routes and benefits to learning (OECD, 2023[3]).
The second lever concerns training leave. Statutory or collectively negotiated leave arrangements could enable workers to allocate time to skill development while maintaining employment security. Nearly half of the 34 countries surveyed in the OECD’s 2025 Trends in Adult Learning Policy Questionnaire report having statutory training leave in place. Design choices – such as whether leave is paid or unpaid, and whether it can be taken full-time or part-time – influence take‑up and distributional effects. For example, training leave schemes that cover foregone wages are more likely to benefit lower-income workers who would otherwise be unable to afford time away from work. Although countries can vary considerably in how they structure leave (Table 3.3), reforms increasingly seek closer alignment with labour market needs and tighter targeting towards genuine retraining and mid-career transitions. Sweden’s Student Finance for Transition and Retraining, for instance, introduced in 2022, consists of a grant and an optional loan to cover up to 80% of previous salary for up to 44 weeks of full-time study (with part-time options), and requires that the chosen training improve the individual’s employability based on labour market needs. Eligibility is restricted to adults aged 27‑62 with at least eight years of work experience and recent employment, revealing an emphasis on mid-career transitions and labour-market-relevant retraining more so than open-ended study.
Reducing financial and opportunity costs
Financial barriers remain a significant deterrent to training participation and are the second most frequently cited obstacle after time constraints. Around 13% of adults who wished to participate in adult learning but did not cited cost as the primary barrier (OECD, 2025[1]). Costs include not only direct tuition fees, but also the opportunity costs of foregone wages, as well as other expenses including childcare costs for those with family responsibilities or transportation costs for those who need to travel to reach the provider offering the relevant training. For adults in insecure employment or with low skills, investment in training may appear excessively risky, especially if returns are uncertain. Mitigating financial barriers is therefore central to sustaining participation over time.
Employers have an important role in sharing these costs, particularly where they benefit directly from enhanced productivity. Around two‑thirds of adults participating in non-formal job-related learning reported their employer covered part or all of the training costs (OECD, 2025[1]). Employer contributions can take the form of direct funding, reimbursement schemes or in-kind support such as paid time allowances. Evidence shows that adults are substantially more likely to participate when employers integrate learning into career progression and recognise acquired skills (OECD, 2023[3]).
Policy instruments such as individual learning accounts (ILAs), training vouchers and subsidised short courses reduce financial risk and provide purchasing power (OECD, 2023[25]). ILAs are particularly effective as they institutionalise the idea of continuous skill investment rather than one‑off interventions (OECD, 2025[26]). By establishing an “account” associated with the individual over time, ILAs symbolically and financially reinforce the norm that skill development is an ongoing responsibility supported by public policy. For example, Lithuania’s KURSUOK individual learning account targets those who have at least vocational education and are employed (including self-employed) at the start of training, to avoid overlap with public employment service support. Funding is steered towards priority skills, with 50% of the budget reserved for digital skills and the remainder allocated to the eight key competence areas defined in the EU Council Recommendation on key competences for lifelong learning, namely literacy, multilingualism, STEM, digital skills, personal and social development, citizenship, entrepreneurship, and cultural awareness. In France, the Compte personnel de formation (CPF) allows individuals to accumulate annual training credits, which remain valid until retirement and can be used to enrol in courses of their choice, among a list of accredited training courses.
References
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← 1. While modularisation is closely related to micro-credentials, the two are not equivalent: modularisation concerns the organisation of learning, whereas micro-credentials are certifications that attest the acquisition of specific skills.