Contemporary labour markets are undergoing a transformation, driven by the growing demand for new skills, the composition of which is dynamically changing due to technological advances, the transition to a green economy, and the shrinking workforce in some countries caused by demographic transition. In the course of these changes, employers, workers, and the economy face inefficiencies and growing economic tension. In the current circumstances, one of the key elements of a potential solution to these emerging problems is a skills-based approach to hiring and developing the professional potential of the workforce, which can transform the way labour markets function and bring benefits to all stakeholders – businesses, workers, society, and the economy. This approach focuses on the skills an employee possesses and their relevance to specific work tasks, rather than on formal education diplomas or work experience in a particular position. The paper examines the latest research conducted by international and leading global expert organizations devoted to analyzing the application of the skills-based approach in developed countries, in which enterprises, social actors, educational institutions, and relevant government services participate. Based on this research, the article identifies areas for the practical implementation of the approach, outlines the main challenges faced by participants, and determines ways and stages to address these challenges, thereby ensuring greater labour productivity and increased flexibility of career trajectories for workers in a rapidly changing labor market.
skills-based approach; work skills; labour markets; recruitment; professional training; lifelong learning.