In recent years, skills-first practices have gained popularity. Skills-first refers to hiring and workforce development practices that prioritise a person’s demonstrated skills and competencies - regardless of how or where they were acquired - over traditional signals such as degrees or job titles. This shift is emerging in response to evolving labour market dynamics, including the need for more adaptable workforces and better recognition of the diverse pathways through which individuals acquire skills. Stakeholders - including employers, training providers, and governments - are exploring how a skills-first approach might contribute to reduce skills shortages, create more inclusive workplaces and stimulate productivity. At the same time, individuals are using new and innovative ways - such as social networking sites and microcredentials - to communicate their skills to employers. Questions remain about how these practices function, what challenges they entail, and how they affect different groups of workers.
This report provides an in-depth exploration of the implementation of skills-first practices across different contexts. It examines both the opportunities these practices can offer individuals - such as expanding access to employment, improving skills visibility, and supporting better job matching - and the challenges they present, including issues around how skills can be best developed and validated, the comparability of different forms of skills evidence across sectors and countries, and the impact of skills signalling on labour market outcomes. The report contributes to broader OECD efforts aimed at supporting countries improve labour market opportunities for individuals from diverse educational and professional backgrounds and promoting competitiveness and economic growth. The report combines data analysis with a review of the experiences of different stakeholders in OECD countries, identifying how public policy can help businesses and workers navigate these transformations in a landscape shaped by shifting skills demands.
This work has been carried out by the OECD Centre for Skills. The report was prepared by Ivan Bornacelly and Maja Ochojska, under the supervision of Francesca Borgonovi. Production co-ordination and administrative support were provided by Jennifer Cannon. Communication support and event co-ordination were provided by Duncan Crawford and Kevin Gillespie. Valuable comments were provided by El Iza Mohamedou (Head of the OECD Centre for Skills) and Stefano Scarpetta (OECD Director for Employment, Labour and Social Affairs).
The OECD is grateful to the numerous stakeholders who contributed their time and insights to this project, including representatives from ministries, employer organisations, training providers, civil society, and individual workers. Special thanks go to the countries and organisations that participated in consultations and workshops, and to those who provided data, shared practices, and supported the development of this report. Data and financial support from LinkedIn are gratefully acknowledged.