Commission proposes a Council Recommendation on Human Capital in an effort to reverse negative skills trends
On 25 November 2025, the European Commission proposed a Council Recommendation on Human Capital in the European Union, urging EU Member States to take action and reverse negative trends in skills, especially in the area of basic skills. The Recommendation goes hand in hand with the 2025 European Semester Autumn Package, published on the same day, which sets out the economic and employment policies expected to give competitiveness a boost.
Reversing bad trends in skills: Council Recommendation
The new Recommendation is addressed to all 27 Member States and calls for urgent actions to tackle human capital related structural challenges that pose a direct threat to EU competitiveness. EU countries are advised to prioritise education and skilling specifically in strategic sectors to European economy, such as the green transition, circular economy, health and biotech, agriculture, defence industry and space. It also calls for strengthened programmes in STEM.
The largest step in front of EU Member States remains addressing the negative trend in basic skills - a key aspect to ensuring future workforce is equipped with strong foundations to be trained and excel in digital technology fields and areas linked to competitiveness.
Some context: where the Council Recommendation on Human Capital fits in
According to the 2017 European Pillar of Social Rights, everyone should have the right to quality, inclusive education, training and lifelong learning and should be able to maintain and acquire all skills that one needs to take part in society and withstand changing dimensions in the labour market.
Skills, and especially digital skills, are a cornerstone of the 2025 EU Competitiveness Compass - a 'critical enabler' of growth, productivity and innovation. In March 2025, the Commission's Union of Skills Communication further highlighted human capital and future-oriented skills as the backbone of European economy. In the 2 Communications on AI by the Commission in 2025, people and skills remain a crucial element for competitiveness and sustainable growth.
The Recommendation identifies areas of common concern for the Union.
Challenges ahead - skills shortages sound the alarm
The tallest mountain ahead of the EU is the persistent shortage of workers and specialised skills. These vary across EU Member States, regions, sectors, and companies. Lack of skilled workers also puts a halt on investment and innovation - in 2023, Eurobarometer reported that 68% of SMEs encountered difficulties in finding candidates with the right skills to fill open job vacancies.
This gap is also reflected in the State of the Digital Decade report:
The State of the Digital Decade 2025 (SDD25) highlights that the gap between labour market demand and available talent continues to widen, especially in fields such as AI, cybersecurity, data analysis and semiconductor technologies. The EU will need between 6.2 and 7 million AI-related workers by 2027, with around 60% of the workforce requiring AI skills. In cybersecurity, a gap of some 300 000 specialists has been identified, while in semiconductors a gap of close to 100 000 new professionals will need to be addressed, under current trends. Member States’ national roadmaps show increasing focus on digital education and lifelong learning, but efforts remain fragmented and uneven, with limited outreach to the low-skilled and underrepresented groups. Projections indicate that, without stronger joint action and sustained investment, the EU will not reach the digital skills targets.
Further reading: diving into the Recommendation
Read the fill Recommendation of the European Commission to the Council on Human Capital in the EU via here.
